Amer Sports Boosts Outlook on Soaring Arc'teryx and Salomon Sales
The company raised its full-year 2025 forecast for revenue, margin, and profit after a third-quarter performance that significantly outpaced Wall Street expectations.
Amer Sports Inc. (NYSE: AS) raised its financial outlook for the full year, signaling strong confidence in its brand portfolio after posting third-quarter results that decisively beat analyst forecasts. The maker of Wilson tennis rackets and Arc'teryx outdoor gear saw its revenue and profit bolstered by surging demand for its high-performance apparel and footwear brands.
The company announced it now expects full-year revenue growth of 23% to 24% for 2025, a notable increase from previous estimates. In a sign of strengthening profitability, Amer Sports also boosted its forecast for adjusted diluted earnings per share to a range of $0.88 to $0.92. Shares of the company traded actively on the news, building on recent momentum since its public offering earlier this year.
For the third quarter ended September 30, Amer Sports reported a 30% jump in revenue to $1.76 billion, surpassing the consensus estimate of $1.73 billion. The performance was even more impressive on the bottom line, with adjusted earnings coming in at $0.33 per share, well ahead of the $0.25 analysts had projected.
Brand Power Drives Growth
The quarter's standout performance was driven by the company's two largest segments. The Outdoor Performance division, which includes the popular Salomon brand, saw sales climb 36% to $724 million. This growth was fueled by continued momentum in footwear and a strong start to the winter sports season.
Equally impressive was the Technical Apparel segment, home to the high-end Arc'teryx brand. It posted a 31% revenue increase to $683 million. The brand's direct-to-consumer sales accelerated, showing strong demand despite a competitive retail environment. The Ball & Racquet Sports unit, featuring the iconic Wilson brand, grew by a solid 16% to $350 million.
"Our third-quarter results demonstrate the power of our brand-building model and the successful execution of our growth strategy," said James Zheng, Chief Executive Officer of Amer Sports. The robust, broad-based growth across all key segments and regions underscores the momentum we are building."
Geographically, the company achieved double-digit growth across all regions, with particularly strong results in Asia. Revenue in Greater China leaped 47%, while the broader Asia Pacific region grew 54%, highlighting successful expansion in key international markets.
Margin Expansion and Analyst Reaction
Beyond top-line growth, Amer Sports demonstrated significant progress in improving its profitability. The company’s adjusted gross margin is now expected to reach approximately 58% for the full year, while its adjusted operating margin is projected to land between 12.5% and 12.7%. In the third quarter, the adjusted operating margin expanded by 130 basis points to 15.7%.
This robust performance has caught the attention of Wall Street. Following the report, analysts at JP Morgan reiterated their 'Overweight' rating on the stock, adjusting their price target to $50. The comprehensive beat and guidance raise provide a clear signal of the company's operational strength in a challenging consumer market where it competes with giants like Nike and specialized apparel firms such as Deckers Outdoor.
Looking ahead, the company provided an early glimpse into 2026, anticipating revenue growth toward the high end of its long-term target of low-double-digit to mid-teens annual growth. This confident outlook, backed by strong quarterly execution, suggests Amer Sports is effectively leveraging its premium brand positioning to capture market share and deliver sustainable growth.