Amer Sports, Inc. · NYSE:AS
Amer Sports — Q4 2024 Earnings Presentation
41 slides from Amer Sports's earnings presentation, Feb 25, 2025
Slide 1: Amer Sports Fourth Quarter 2024
Amer Sports Fourth Quarter 2024
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation includes estimates, projections, statements relating to the business plans, objectives, and expected operating results of Amer Sports Inc. (“Amer Sports” or the “Company”) that are “forward-looking statements” within the meaning of the Private Securities
Slide 3: Strong Fourth Quarter 2024
Strong Fourth Quarter 2024 • Strong quarter beat with sales, adjusted margins and EPS above expectations • Revenue increased 23% to $1.6 billion • Arc'teryx global momentum expanded, including an omni-comp acceleration • Salomon Softgoods growth accelerated across every region • Ball & Racquet grew
Slide 4: Confident in Our Future
Confident in Our Future • Unique portfolio of premium sports & outdoor brands. High consumer engagement, conversion, and satisfaction but still small in size. • Arc’teryx generating strong growth and profitability for the outdoor industry, disruptive DTC model, and unique competitive position. • Sal
Slide 5: Technical Apparel Q4 Highlights
Arc’teryx’s newest innovation: The Micon LiTRIC Avalanche Airbag Technical Apparel Q4 Highlights Omni-comp 33% 36% 26% 29% 20% 4Q’23 1Q’24 2Q’24 3Q’24 4Q’24 Feminine colorways have been popular with female customers 5 Tuesday, February 25, 2025 Strong growth in Women’s snow New leadership appointmen
Slide 6: Outdoor Performance Q4 Highlights
Outdoor Performance Q4 Highlights Shift from Equipment to Sneakers Winter sports 46% 33% equipment Footwear & 67% 54% New London store shoe apparel Salomon Milan store opening presentation New Salomon London Soho storefront 2022 2024 6 Tuesday, February 25, 2025 Salomon footwear surpassed $1 billion
Slide 7: Ball & Racquet Q4 Highlights
RF x Wilson collection continues to Strongest US Open ever, with record sales be a great success Ball & Racquet Q4 Highlights Revenue growth 22% 11% 1% -3% Wilson Clash V3 launch Off-white x Wilson 3D basketball collab -14% 4Q’23 1Q’24 2Q’24 3Q’24 4Q’24 Wilson Softgoods doubled in 2024 7 shop-in-sho
Slide 8: Financial Review
Financial Review
Slide 9: 2024 Highlights
2024 Highlights • 18% revenue growth full year, broad based across brands, regions, channels, and categories • Arc’teryx and Salomon footwear continue strong growth • Wilson returned to growth • Adj. operating margin1 up from 9.8% to 11.1% • Successful IPO and follow-on offering plus strong free cas
Slide 10: Last Four Quarters Revenue Trends by Segment
Last Four Quarters Revenue Trends by Segment Group Technical Apparel Outdoor Performance Ball & Racquet 44% 34% 34% 33% 22% 13% 23% 11% 11% 16% 17% 8% 1% 13% 6% -14% 1Q24 2Q24 3Q24 4Q24 1Q24 2Q24 3Q24 4Q24 1Q24 2Q24 3Q24 4Q24 1Q24 2Q24 3Q24 4Q24
Slide 11: Last Four Quarters Revenue Trends by Channel
Last Four Quarters Revenue Trends by Channel DTC Wholesale 46% 41% 40% 41% 8% 6% 2% -1% 1Q24 2Q24 3Q24 4Q24 1Q24 2Q24 3Q24 4Q24
Slide 12: Last Four Quarters Revenue Trends by Region
Last Four Quarters Revenue Trends by Region Greater China APAC Americas EMEA 56% 54% 54% 51% 52% 45% 47% 34% 15% 8% 7% 4% 0% 1% 1% 1% 1Q24 2Q24 3Q24 4Q24 1Q24 2Q24 3Q24 4Q24 1Q24 2Q24 3Q24 4Q24 1Q24 2Q24 3Q24 4Q24
Slide 13: Adjusted Gross Profit Margin Bridge
1 Adjusted Gross Profit Margin Bridge • Another quarter of strong 56.4% gross margin expansion (+370bps) • GM expansion primarily driven by positive segment, product regional, channel mix shift and 52.7% lower discounting actions 4Q23 Pricing, Product Mix, Brand & Regional Mix Transportation, 4Q24 D
Slide 14: Adjusted SG&A Bridge
1 Adjusted SG&A Bridge 43.3% of revenue • Adj. SG&A expenses as a percentage of revenues $708M delevered 20bps • Technical Apparel and 43.1% of Outdoor Performance revenue deleverage was driven by investments to support growth $573M and was partially offset by Ball & Racquet and headquarters expense
Slide 15: Other Financial Items
Other Financial Items Q4’23 Q4’24 Adj. Operating margin 10.3 % 13.6 % Adj. Net finance cost ($M) 115 64 Adj. Effective tax rate 254% 42% Adj. Net income to equity -31 90 holders ($M) Adj. Diluted EPS ($) -0.08 0.17 15 Tuesday, February 25, 2025 Note: Please refer to appendix for appendix for reconci
Slide 16: Technical Apparel
Technical Apparel • Technical Apparel revenues increased 33% in Q4 to $745 million led by Arc'teryx. Revenue ($B) and Adjusted Operating Margin • Q4 growth fueled by 44% DTC expansion, and 29% omni- comp on top of 33% omni-comp in Q4’23. Wholesale was ~31% CAGR flat due to timing of shipments compar
Slide 17: Outdoor Performance
Outdoor Performance • Revenue increased 13% in Q4 to $594 million, driven by very strong growth in Salomon footwear, apparel, bags and socks. Revenue ($B) and Adjusted Operating Margin • Salomon Softgoods seeing very positive pre-order growth in ~15% CAGR especially in EMEA, after more challenging t
Slide 18: Ball & Racquet
Ball & Racquet • Revenue accelerated to double digit growth, increasing 22% in Q4 to $296 million driven especially by Racquet Sports and Sportswear, helped by easier comparisons. Revenue ($B) and Adjusted Operating Margin • Tennis 360 continued to experience very strong momentum ~8% CAGR especially
Slide 19: Balance Sheet Update
Balance Sheet Update 9/30/2024 ($M) 12/31/2024 ($M) EUR term loan 784 0 USD term loan 434 0 • Net debt in Q4 was 0.6 Secured notes 800 800 billion, down from 2.0 ST China loan 153 136 billion in Q3 Revolver 129 0 Total debt 2,300 936 • We are comfortable with Cash 312 345 our current leverage. Net D
Slide 20: Inventory
Inventory Yearly and quarterly revenue and inventory change (in %) • Inventories rose 11% year- Inventory and Sales growth over-year, below 23% revenue growth for 4Q, 23% 23% 21% finishing 2024 in a very healthy position 17% 16% 13% 12% 11% 6% 2% 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Inventory growth
Slide 21: Cash Flows from Operating Activities
Cash Flows from Operating Activities • 2024 was a very strong cash generation year driven by strong profit $425 growth and disciplined working capital management $199 -$92 2022 2023 2024 In millions USD 21 Tuesday, February 25, 2025
Slide 22: Sourcing Exposure: China, Vietnam, Canada, and Mexico
Sourcing Exposure: China,Vietnam, Canada, and Mexico • In 2024, sourcing to the U.S. from China, Vietnam, Canada, and Mexico combined represented approximately 20% of global sourcing. • China and Vietnam make up the majority of this exposure, while sourcing from Canada and Mexico to the U.S. account
Slide 23: Guidance
Guidance
Slide 24: Outlook: Full Year 2025
Outlook: Full Year 2025 Other than revenue, all guidance figures reference adjusted amounts • Reported revenue growth: 13 – 15% (which assumes an approximate 250 basis point drag from unfavorable Fx impact at current exchange rates) • Gross margin: 56.5 – 57.0% • Operating margin: 11.5% – 12.0% • D&
Slide 25: Outlook: 1Q 2025
Outlook: 1Q 2025 Other than revenue, all guidance figures reference adjusted amounts • Reported revenue growth: 14 – 16% (which assumes a ~300 basis point drag from unfavorable Fx impact at current exchange rates) • Gross margin: 56.5 – 57.0% • Operating margin: 11.0 – 11.5% • Net finance cost: appr
Slide 26: Q&A
Q&A 26 Tuesday, February 25, 2025
Slide 27: Amer Sports brand logos
ae arcterrx saLcomon Wilson PeakPerformance A ATOMIC evosHieLo ZA AMER SPORTS
Slide 28: Appendix
Appendix 1. Adjusted gross profit reconciliation 2. Adjusted SG&A reconciliation 3. Adjusted net finance cost reconciliation 4. Adjusted income tax expense reconciliation 5. Adjusted net income reconciliation 6. Adjusted operating profit reconciliation 7. EBITDA, adjusted EBITDA and adjusted EBITDA
Slide 29: Adjusted Gross Profit and SG&A Reconciliation
ADJUSTED GROSS PROFIT RECONCILIATION For the Three and Twelve Months Ended December 31, 2024 and 2023 (Unaudited; $) Three Months Ended Twelve Months Ended December 31, December 31, ($ in millions) 2024 2023 2024 2023 Gross Profit $ 917.5 $ 695.7 $ 2,871.8 $ 2,308.1 PPA 3.7 3.7 14.8 14.8 Expenses re
Slide 30: Adjusted Net Finance Cost and Income Tax Expense Reconciliation
ADJUSTED NET FINANCE COST RECONCILIATION For the Three and Twelve Months Ended December 31, 2024 and 2023 (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, ($ in millions) 2024 2023 2024 2023 Net Finance Costs $ (122.7) $ (114.9) $ (309.6) $ (407.0) Expenses related to tra
Slide 31: Adjusted Net Income Reconciliation
ADJUSTED NET INCOME RECONCILIATION (1) For the Three and Twelve Months Ended December 31, 2024 and 2023 (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, ($ in millions, except per share information) 2024 2023 2024 2023 Net income/(loss) attributable to equity holders of t
Slide 32: Adjusted Operating Profit Reconciliation
ADJUSTED OPERATING PROFIT RECONCILIATION (1) For the Three and Twelve Months Ended December 31, 2024 and 2023 (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, ($ in millions) 2024 2023 2024 2023 Income/(Loss) Before Tax $ 70.9 $ (55.1) $ 161.2 $ (104.6) PPA 10.6 10.6 42.8
Slide 33: EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin Reconciliation
EBITDA, ADJUSTED EBITDA, AND ADJUSTED EBITDA MARGIN RECONCILIATION (1) (2) For the Three and Twelve Months Ended December 31, 2024 and 2023 (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, ($ in millions) 2024 2023 2024 2023 Revenue $ 1,635.5 $ 1,327.5 $ 5,183.3 $ 4,400.4
Slide 34: P&L excluding non-IFRS adjustments
P&L excluding non-IFRS adjustments 1Q24 2Q24 3Q24 4Q24 FY 2024 Total Sales (M$) 1,192.4 1,001.5 1,353.8 1,635.5 5,183.2 Growth% 12.8% 16.1% 17.4% 23.2% 17.8% Adj. Gross Profit 651.8 562.6 751.0 923.0 2,888.4 Adj. Gross Margin% 54.7% 56.2% 55.5% 56.4% 55.7% Adj. SG&A 526.7 533.7 572.0 708.5 2,340.8 A
Slide 35: Adjusted Gross Profit Reconciliation
Adjusted Gross Profit Reconciliation (1) In Millions Q1'24 Q2'24 Q3'24 Q4'24 FY 2024 Gross Profit $648.1 $558.9 $747.3 $917.5 $2,871.8 PPA 3.7 3.7 3.7 3.7 14.8 Expenses related to certain legal - - - 1.8 1.8 proceedings Adjusted Gross Profit $651.8 $562.6 $751.0 $923.0 $2,888.4 (1) The presented fig
Slide 36: Adjusted SG&A Reconciliation
Adjusted SG&A Reconciliation (1) In Millions Q1'24 Q2'24 Q3'24 Q4'24 FY 2024 Selling, general and administrative ($543.9) ($567.7) ($586.5) ($732.3) ($2,430.4) PPA 7.0 7.0 7.1 6.9 28.0 Restructuring expenses 0.9 8.8 2.5 10.2 22.4 Expenses related to transaction activities 5.8 12.2 2.3 1.8 22.1 Expen
Slide 37: Adjusted Net Finance Cost Reconciliation
Adjusted Net Finance Cost Reconciliation (1) In Millions Q1'24 Q2'24 Q3'24 Q4'24 FY 2024 Net Finance Costs $(93.9) $(45.2) $(47.8) $(122.7) $(309.6) Expenses related to transaction activities 18.0 - 2.3 11.4 31.7 Other adjustment - - - 29.6 29.6 Loss on debt extinguishment 14.3 - - 17.5 31.8 Adjuste
Slide 38: Adjusted Income Tax Expense Reconciliation
Adjusted Income Tax Expense Reconciliation (1) In Millions Q1'24 Q2'24 Q3'24 Q4'24 FY 2024 Income Tax Expense $(8.2) $51.9 $(72.7) $(53.8) $(82.8) PPA (2.7) (2.7) (2.7) (2.7) (10.7) Restructuring expenses (0.2) (2.2) (0.6) (2.6) (5.7) Expenses related to transaction activities (2.9) (3.1) (1.1) (1.2
Slide 39: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation (1) In Millions Q1'24 Q2'24 Q3'24 Q4'24 FY 2024 Net income/(Loss) attributable to equity holders of the $5.1 $(3.7) $55.8 $15.4 $72.6 company PPA 10.7 10.7 10.8 10.6 42.8 Restructuring expenses 0.9 8.8 2.5 10.2 22.4 Expenses related to transaction activities 23.9 1
Slide 40: Adjusted Operating Profit Reconciliation
Adjusted Operating Profit Reconciliation (1) In Millions Q1'24 Q2'24 Q3'24 Q4'24 FY 2024 Income/(Loss) before tax $15.1 $(53.7) $128.9 $70.9 $161.2 PPA 10.7 10.7 10.8 10.6 42.8 Restructuring expenses 0.9 8.8 2.5 10.2 22.4 Expenses related to transaction activities 5.8 12.2 2.3 1.8 22.1 Expenses rela
Slide 41: Non-IFRS Disclaimer
NON-IFRS DISCLAIMER Adjusted gross profit margin, adjusted SG&A expenses, adjusted operating profit margin, adjusted EBITDA, adjusted net income/(loss) attributable to equity holders, and adjusted diluted income/(loss) per share are financial measures that are not defined under IFRS Accounting Stand