Amer Sports, Inc. · NYSE:AS
Amer Sports — Q1 2025 Earnings Presentation
41 slides from Amer Sports's earnings presentation, May 20, 2025
Slide 1: Amer Sports First Quarter 2025
Amer Sports First Quarter 2025
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains statements that constitute forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Many of the forwa
Slide 3: Strong First Quarter 2025
Strong First Quarter 2025 • Strong results with revenues, adjusted margins and EPS well above expectations • Revenue increased 23% to $1,473 million in 1Q25, and strong momentum has continued into 2Q25 • Arc’teryx strong trends continue across regions, channels, and categories • Salomon footwear bra
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 Q1 Highlights
First ever Arc'teryx Academy in California at Mammoth Mountain Technical Apparel Q1 Highlights Omni-comp 36% 26% 29% 20% 19% 1Q’24 2Q’24 3Q’24 4Q’24 1Q’25 Rebird service center pop-up at the Arc’teryx Academy in Mammoth 5 Climbing Veilance at FW25 Paris Fashion Week community event LD Norvan in Seou
Slide 6: Outdoor Performance Q1 Highlights
Salomon is enjoying strong brand Better than expected WSE heat in NYC results Outdoor Performance Q1 Highlights Shift from Equipment to Sneakers 1Q’25 Outdoor Winter sports 46% 33% Performance +25% led equipment by very strong growth led by Salomon Footwear & 67% footwear apparel 54% Salomon XT Wisp
Slide 7: Ball & Racquet Q1 Highlights
Wilson Softgoods continued its Strongest US Open ever, with record sales excellent growth Ball & Racquet Q1 Highlights Revenue growth 22% 11% 12% 1% Off-white x Wilson 3D basketball collab New Vesper pickleball paddle launch -14% 1Q’24 2Q’24 3Q’24 4Q’24 1Q’25 Wilson Softgoods doubled in 2024 7 New W
Slide 8: Financial Review
Financial Review
Slide 9: Last Four Quarters Revenue Trends by Segment
Last Four Quarters Revenue Trends by Segment Group Technical Apparel Outdoor Performance Ball & Racquet 34% 34% 33% 28% 25% 22% 23% 23% 16% 17% 13% 12% 11% 11% 8% 1% 2Q24 3Q24 4Q24 1Q25 2Q24 3Q24 4Q24 1Q25 2Q24 3Q24 4Q24 1Q25 2Q24 3Q24 4Q24 1Q25
Slide 10: Last Four Quarters Revenue Trends by Channel
Last Four Quarters Revenue Trends by Channel DTC Wholesale 46% 40% 41% 39% 12% 8% 6% 2% 2Q24 3Q24 4Q24 1Q25 2Q24 3Q24 4Q24 1Q25
Slide 11: Last Four Quarters Revenue Trends by Region
Last Four Quarters Revenue Trends by Region APAC Greater China Americas EMEA 56% 54% 54% 52% 47% 49% 45% 43% 15% 12% 12% 7% 8% 4% 1% 1% 2Q24 3Q24 4Q24 1Q25 2Q24 3Q24 4Q24 1Q25 2Q24 3Q24 4Q24 1Q25 2Q24 3Q24 4Q24 1Q25
Slide 12: Adjusted Gross Profit Margin Bridge
1 Adjusted Gross Profit Margin Bridge 58.0% 54.7% 1Q24 Pricing, Product Mix, Brand & Regional Mix Transportation, 1Q25 Discounts, FX & Other Logistics and Materials 12 (1) Adj. gross margin is a non-IFRS financial measure. See Appendix for reconciliation to nearest comparable IFRS financial measure.
Slide 13: Adjusted SG&A Bridge
1 Adjusted SG&A Bridge 42.6% of revenue $627M 44.2% of revenue $527M 1Q24 Technical Apparel Outdoor Ball & Racquet HQ 1Q25 Performance 13 (1) Adj. SG&A is a non-IFRS financial measure. See Appendix for reconciliation to nearest comparable IFRS financial measure.
Slide 14: Other Financial Items
Other Financial Items Q1’24 Q1’25 Adj. Operating margin 10.9 % 15.8 % Adj. Net finance cost ($M) 62 17 Adj. Effective tax rate 24% 30% Adj. Net income to equity 50 148 holders ($M) Adj. Diluted EPS ($) 0.11 0.27 14 Note: Please refer to appendix for appendix for reconciliation of the non-IFRS measur
Slide 15: Technical Apparel
Technical Apparel • Revenues increased 28% in Q1 to $664 million led by Arc'teryx. • Q1 growth fueled by 31% DTC expansion, 22% wholesale Revenue ($B) and Adjusted Operating Margin growth and 19% omni-comp on top of 36% in Q1’24. ~32% CAGR • Peak Performance making good progress in shifting to more
Slide 16: Outdoor Performance
Outdoor Performance • Revenue increased 25% in Q1 to $502 million, driven by very strong performance in Salomon Softgoods and better-than- expected results in Winter Sports Equipment. Revenue ($B) and Adjusted Operating Margin • DTC grew 68% led by China and APAC, and wholesale growth ~14% CAGR acce
Slide 17: Ball & Racquet
Ball & Racquet • Revenue increased 12% in Q1 to $306 million driven by Softgoods, Racquet Sports and Golf. Revenue ($B) and Adjusted Operating Margin • Tennis 360 continued to experience very strong momentum across markets. ~7% CAGR • Golf experienced positive growth driven by successful Dynapower p
Slide 18: Balance Sheet Update
Balance Sheet Update 12/31/2024 ($M) 3/31/2025 ($M) Secured notes 800 800 ST bank financing 137 137 Revolver 0 0 Total debt 937 937 Cash 345 422 Net Debt 591 515 2024/2025 adjusted 808 1,057 EBITDA (IFRS) Leverage ratio 0.7x 0.5x 18 (1) Net debt is defined as loans from financial institutions less c
Slide 19: Inventory
Inventory Yearly and quarterly revenue and inventory change (in %) Inventory and Sales growth 23% 23% 21% 18% 15% 11% 2023 2024 1Q 2025 Sales growth Inventory growth 19
Slide 20: Cash Flows from Operating Activities
Cash Flows from Operating Activities $422 $199 -$92 2022 2023 2024 2025E In millions USD 20
Slide 21: Guidance
Guidance
Slide 22: Amer Sports Well Positioned to Manage Higher Tariffs
Amer Sports Well Positioned to Manage Higher Tariffs • Our continued business momentum, diverse global footprint, clean balance sheet, and strong pricing power positions us well to navigate rising tariffs and associated macro uncertainties. • Our updated guidance assumes U.S. tariffs on imports from
Slide 23: U.S. Tariff Exposure Breakdown by Country and Brand
Work in progress Data reflecting F1.5 U.S. Tariff Exposure Breakdown by Country and Brand Amer Sports Group U.S. Revenue Broken Incremental Tariff down by Sourcing Country Exposure by Brand Sourcing Country Ball & Racquet Technical China-to-US 8% Ball & Apparel Racquet Vietnam-to-US 8% Rest of Asia-
Slide 24: Outlook: Full Year 2025
Outlook: Full Year 2025 Other than revenue, all guidance figures reference adjusted amounts. Guidance assumes U.S. tariffs on imports from China stay at 30% for the rest of the year and Rest-of-World at 10%: • Reported revenue growth: 15 – 17% • Gross margin: 56.5 – 57% • Operating margin: 11.5 – 12
Slide 25: Outlook: 2Q 2025
Outlook: 2Q 2025 Other than revenue, all guidance figures reference adjusted amounts. Guidance assumes U.S. tariffs on imports from China stay at 30% for the rest of the year and Rest-of-World at 10%: • Reported revenue growth: 16 – 18% • Gross margin: 57 – 58% • Operating margin: 3 – 4% • Net finan
Slide 26: Q&A
Q&A 26
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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 Months Ended March 31, 2025 and 2024 (Unaudited) For the Three Months Ended March 31, In millions 2025 2024 Gross Profit $ 851.1 $ 648.1 Depreciation and amortization on PPA fair value step up 3.6 3.7 Expenses related to certain legal proceedings (0
Slide 30: Adjusted Net Finance Cost and Income Tax Expense Reconciliation
ADJUSTED NET FINANCE COST RECONCILIATION For the Three Months Ended March 31, 2025 and 2024 (Unaudited) For the Three Months Ended March 31, In millions 2025 2024 Net Finance Costs $ (16.6) $ (93.9) Expenses related to transaction activities — 18.0 Loss on debt extinguishment — 14.3 Adjusted Net Fin
Slide 31: Adjusted Net Income Reconciliation
ADJUSTED NET INCOME RECONCILIATION (1) For the Three Months Ended March 31, 2025 and 2024 (Unaudited; except per share information) For the Three Months Ended March 31, In millions (except for share and earnings per share information) 2025 2024 Net income attributable to equity holders of the Compan
Slide 32: Adjusted Operating Profit Reconciliation
ADJUSTED OPERATING PROFIT RECONCILIATION (1) For the Three Months Ended March 31, 2025 and 2024 (Unaudited) For the Three Months Ended March 31, In millions 2025 2024 Income before tax $ 197.6 $ 15.1 Depreciation and amortization on PPA fair value step up 10.5 10.7 Restructuring expenses 2.9 0.9 Exp
Slide 33: EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin Reconciliation
EBITDA, ADJUSTED EBITDA, AND ADJUSTED EBITDA MARGIN RECONCILIATION (1) For the Three Months Ended March 31, 2025 and 2024 (Unaudited) For the Three Months Ended March 31, In millions 2025 2024 Revenue $ 1,472.5 $ 1,192.5 Net income attributable to equity holders of the Company $ 134.6 $ 5.1 Net inco
Slide 34: P&L excluding non-IFRS adjustments
P&L excluding non-IFRS adjustments (1) 1Q'25 1Q'24 Total Sales (M$) 1,472.5 1,192.4 Growth% 23.5% 12.8% Adj. Gross Profit 853.9 651.8 Adj. Gross Margin% 58.0% 54.7% Adj. SG&A 626.8 526.7 Adj. SG&A% 42.6% 44.2% Other operating income 5.0 4.7 Adj. Operating Profit 232.2 129.8 Adj. OP Margin% 15.8% 10.
Slide 35: Adjusted Gross Profit Reconciliation
Adjusted Gross Profit Reconciliation (1) In Millions Q1'25 Q1'24 Gross Profit $851.1 $648.1 Depreciation and amortization on PPA fair value step up 3.6 3.7 Expenses related to certain legal proceedings (0.8) - Adjusted Gross Profit $853.9 $651.8 (1) The presented figures and percentages are subject
Slide 36: Adjusted SG&A Reconciliation
Adjusted SG&A Reconciliation (1) In Millions Q1'25 Q1'24 Selling, general and administrative ($641.9) ($543.9) Depreciation and amortization on PPA fair value step up 6.9 7.0 Restructuring expenses 2.9 0.9 Expenses related to transaction activities 0.3 5.8 Expenses related to certain legal proceedin
Slide 37: Adjusted Net Finance Cost Reconciliation
Adjusted Net Finance Cost Reconciliation (1) In Millions Q1'25 Q1'24 Net Finance Costs ($16.6) ($93.9) Expenses related to transaction activities - 18.0 Other adjustment - - Loss on debt extinguishment - 14.3 Adjusted Net Finance Costs ($16.6) ($61.6) (1) The presented figures and percentages are su
Slide 38: Adjusted Income Tax Expense Reconciliation
Adjusted Income Tax Expense Reconciliation (1) In Millions Q1'25 Q1'24 Income Tax Expense ($59.5) ($8.2) Depreciation and amortization on PPA fair value step up (2.6) (2.7) Restructuring expenses (0.7) (0.2) Expenses related to transaction activities (0.1) (2.9) Expenses related to certain legal pro
Slide 39: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation (1) In Millions Q1'25 Q1'24 Net income attributable to equity holders of the $134.6 $5.1 company Depreciation and amortization on PPA fair value step up 10.5 10.7 Restructuring expenses 2.9 0.9 Expenses related to transaction activities 0.3 23.9 Expenses related to
Slide 40: Adjusted Operating Profit Reconciliation
Adjusted Operating Profit Reconciliation (1) In Millions Q1'25 Q1'24 Income before tax $197.6 $15.1 Depreciation and amortization on PPA fair value step up 10.5 10.7 Restructuring expenses 2.9 0.9 Expenses related to transaction activities 0.3 5.8 Expenses related to certain legal proceedings (0.7)
Slide 41: Non-IFRS Disclaimer
NON-IFRS DISCLAIMER Adjusted gross profit margin, adjusted SG&A expenses, adjusted net finance costs, adjusted income tax expense, adjusted operating profit margin, adjusted EBITDA, adjusted net income attributable to equity holders of the Company, and adjusted diluted income per share are financial