Amer Sports (AS)·Q4 2025 Earnings Summary
Amer Sports Beats Q4 but FY26 Guide Sends Shares Down 8%
February 24, 2026 · by Fintool AI Agent
Amer Sports delivered a strong Q4 2025 with revenue and EPS beats, but the celebration was short-lived as FY2026 guidance came in below Street expectations. Shares dropped 8% after-hours to $38.50 despite the quarter's outperformance, reflecting investor concern over margin pressure from accelerated investment and inventory build.
Did Amer Sports Beat Earnings?
Yes — on both top and bottom line. Q4 2025 results exceeded consensus across key metrics:
Full year 2025 results were equally impressive: revenue of $6.57B (+27% YoY) and adjusted EPS of $0.97, well above the original guidance range of $0.77-0.82 set at the start of the year.
Beat/miss streak: Amer Sports has now beaten EPS estimates for 8 consecutive quarters since its February 2024 IPO.
Ask Fintool AI AgentHow Did the Stock React?
Despite the Q4 beat, AS shares dropped sharply after-hours:
The disconnect between the Q4 beat and stock reaction reflects three concerns:
- FY26 EPS guidance miss: $1.10-1.15 vs. $1.17 consensus
- Margin compression: Q4 operating margin declined ~100bps to 12.5% due to SG&A investment
- Inventory build: Inventory grew 33% vs. 27% sales growth
What Did Management Guide for FY2026?
Management's FY2026 outlook missed consensus on EPS despite robust revenue growth expectations:
Q1 2026 guidance was notably strong with 22-24% revenue growth expected (includes ~500bps FX benefit) and EPS of $0.28-0.30.
The guidance contemplates continued investment in:
- 25-30 new Arc'teryx stores
- Salomon footwear expansion, particularly in China (~35 net new stores)
- D&A of ~$400M including ~$170M ROU depreciation
- CapEx of ~$400M vs $310M in 2025
What Changed From Last Quarter?
Positive shifts:
- Technical Apparel margin expanded 160bps in Q4 to 25.9% as revenue upside dropped to bottom line
- Winter Sports Equipment returned to double-digit growth despite lower snow in Alps and Rockies
- Baseball at Wilson returned to growth driven by bat launches (Louisville Slugger Supra)
- Net debt reduced to $291M (0.3x leverage) from $800M in Q3
Areas of concern:
- Outdoor Performance margin contracted 490bps to 6.2% on Salomon investment
- SG&A deleverage of 220bps driven by store expansion and marketing
- Inventory growth (33%) outpacing sales growth (27%)
Segment Performance
Technical Apparel (Arc'teryx, Peak Performance)
The star performer with Q4 revenue up 34% to $1B:
- Wholesale grew 37%, DTC expanded 34%
- Strong growth across all regions led by APAC, Greater China, Americas, and EMEA
- Arc'teryx opened 15 net new stores in Q4, expects 25-30 in 2026
- Women's was fastest-growing category at 40%+ growth, expected to exceed 30% of sales by 2030
- Footwear also grew ~40%, led by Norvan LD 4 trail shoes and Kopek hiking shoe
- Peak Performance delivered solid growth with improving profitability
Key store openings include the new Alpha Store at Rockefeller Center (Fifth Avenue) and Mountain Town stores in Aspen and Park City — all off to strong starts . The Rebirth circularity program expanded to 43 centers with trade-in credit increased to 30% from 20%, driving a "notable jump" in trading activity .
FY2026 outlook: 18-20% revenue growth, ~22% operating margin
Outdoor Performance (Salomon, Atomic, Armada)
Q4 revenue up 29% to $764M driven by footwear momentum:
- DTC grew 55% led by China and APAC; wholesale expanded 17%
- 33 net new Salomon stores in China in Q4, plus 8 in APAC; opened new Williamsburg, Brooklyn store and new Paris hub office
- Epicenter strategy focused on NYC, LA, Milan, London, Paris — plan 7-10 new US stores in 2026
- Margin compressed due to investment in Salomon Softgoods growth
- Milano Cortina Winter Olympics: Amer Sports brands won 59 medals from 200+ sponsored athletes; Salomon outfitted all 27,000 staff/volunteers
- Brand awareness increased 15 points globally since 2023 (+15 in Paris, +10 in London)
FY2026 outlook: 18-20% revenue growth, 14.5-14.8% operating margin
Ball & Racquet (Wilson)
Q4 revenue up 14% to $337M with improving profitability:
- Tennis 360 momentum remains strong; softgoods now ~15% of segment
- Baseball returned to growth driven by successful bat launches (5 of top 10 bats this season)
- Wilson announced Carrie Ask as new Brand President and CEO effective March 1
- 10 net new Wilson stores in Q4; plan ~30 new Tennis 360 shops in China in 2026
- Signed 6 new Wilson Tennis 360 athletes including world top 10 player Alex de Minaur
FY2026 outlook: 7-9% revenue growth, 4.7-5.0% operating margin
Ask Fintool AI AgentRegional Performance
All four regions delivered double-digit growth in Q4:
Greater China remains the crown jewel, delivering 40%+ growth every quarter of 2025. The company highlighted its "strong, differentiated platform" in China that continues to deliver "best-in-class performance across brands."
Balance Sheet Strength
Cash generation and deleveraging accelerated in Q4:
Operating cash flow for FY2025 reached $730M, up from $425M in 2024. Post quarter-end, AS announced $80M redemption of 6.75% senior secured notes at 103 redemption price.
Key Risks to Monitor
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Inventory overhang: 33% inventory growth vs. 27% sales growth could pressure margins if demand softens (management attributes to earlier receipts, ocean freight, FX, and Korea acquisition)
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China dependency: With 40%+ of growth coming from Greater China, geopolitical or consumer sentiment shifts pose concentration risk
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Investment payback: Significant SG&A and CapEx investment (~$400M each in 2026) needs to deliver returns
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Tariff exposure: Guidance assumes "latest tariff rates on all countries will stay in place for 2026 and beyond" but management expects "immaterial impact" given low US exposure and pricing power
Q&A Highlights
On Salomon investment strategy (Guillaume Meyzenq, Salomon CEO):
"We take this opportunistic decision to fuel Salomon long-term expansion in Q4... We are driving marketing campaigns supporting XT-Whisper, which we need to build a portfolio of key franchise products. On top of XT-6, we need a variety of products, and XT-Whisper looks like a very promising opportunity."
On Arc'teryx momentum (Stuart Haselden, Arc'teryx CEO):
"Off to a fast start in the first quarter. Really pleased with the trends we're seeing across all regions. We're seeing especially strong momentum in North America over the last few weeks... There's nothing structural that would prevent us from capturing higher sales, should demand materialize."
On China consumer trends (James Zheng, CEO):
"We see a very positive consumer trend during the Chinese New Year in our brands... The consumption is very, very strong. However, it's still a bit too early for us to say this is a very bullish situation in China market, but at least we are off a good start in 2026."
On US wholesale expansion (Guillaume Meyzenq):
"We have renewed support with REI, which used to be our historical partner... In parallel, we have Nordstrom, JD Sport, and most of the running specialists, which are today our current targets. We are building distribution door by door, city by city."
On tariff impact (Andrew Page, CFO):
"At the group level, we're confident in our position to manage through a variety of tariff scenarios, given our low level of U.S. exposure, our strong brand portfolio and pricing power, and our clean balance sheet."
Leadership Changes
Beyond the previously announced Carrie Ask as Wilson CEO, several key appointments were highlighted:
The Bottom Line
Amer Sports delivered a strong Q4 beat on revenue and EPS, continuing its post-IPO streak of exceeding expectations. Arc'teryx remains the crown jewel with industry-leading growth and profitability, while Salomon footwear gains momentum in the attractive sneaker market.
However, the stock's 8% after-hours decline reflects legitimate concerns: FY2026 EPS guidance below consensus, margin pressure from growth investment, and inventory build that outpaces sales. Management is clearly investing for long-term share gains in Salomon and China, but the near-term margin trade-off gave investors pause.
For the bull case: The brand portfolio is differentiated, China growth is exceptional, and the balance sheet is clean. At ~35x FY26 EPS guide ($1.12 midpoint), valuation has reset to a more reasonable level.
For the bear case: Premium multiple requires flawless execution on guidance that already disappointed. Inventory and tariff risks remain.
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