The Finnish sporting goods group enters the new fiscal year with strong momentum and clear strategic priorities. It is accelerating investments in Salomon to unlock further growth in softgoods. Management remains confident that the broader brand portfolio will sustain profitable expansion.
Amer Sports once again exceeded expectations in the fourth quarter, ending an already strong year on a dynamic note. Revenue in Q4 FY25 rose 28 percent year-on-year to $2.10 billion, driven by double-digit growth in all regions. Greater China and Asia Pacific led the regional performance. Technical Apparel and Outdoor Performance segments also posted robust growth. Gross margin improved by 160 basis points to 57.7 percent, while net income jumped to $132m; adjusted EPS was also up year-on-year at $0.31.
| Amer Sports - Income | |||
|---|---|---|---|
| 2025 | 2024 | Change | |
| Q4, ended Dec. 31 ($ million) | |||
| Revenue | 2,101.1 | 1,635.5 | 28.5% |
| Cost of goods sold | -889.0 | -718.0 | 23.8% |
| Gross profit | 1,212.1 | 917.5 | 32.1% |
| SG&A expenses | -988.3 | -732.3 | 35.0% |
| Impairment losses | -0.9 | 0.6 | -250.0% |
| Other operating income | 5.1 | 7.8 | -34.6% |
| Operating profit | 228.0 | 193.6 | 17.8% |
| Interest income | 2.0 | 2.5 | -20.0% |
| Interest expense | -20.1 | -64.1 | -68.6% |
| Foreign currency exchange gains (net) & other finance costs | -2.5 | -43.6 | -94.3% |
| Loss on debt extinguishment | – | -17.5 | – |
| Net finance cost | -20.6 | -122.7 | -83.2% |
| Pre-tax | 207.4 | 70.9 | 192.5% |
| Tax | -73.9 | -53.8 | 37.4% |
| Net income | 133.5 | 17.1 | 680.7% |
| Diluted EPS | 0.23 | 0.03 | 666.7% |
| FY, ended Dec. 31 ($ million) | |||
| Revenue | 6,566.2 | 5,183.3 | 26.7% |
| Cost of goods sold | -2,781.9 | -2,311.5 | 20.4% |
| Gross profit | 3,784.3 | 2,871.8 | 31.8% |
| SG&A expenses | -3,104.6 | -2,430.4 | 27.7% |
| Impairment losses | -14.0 | -1.9 | 636.8% |
| Other operating income | 36.1 | 31.3 | 15.3% |
| Operating profit | 701.8 | 470.8 | 49.1% |
| Interest income | 6.4 | 8.8 | -27.3% |
| Interest expense | -97.7 | -219.0 | -55.4% |
| Foreign currency exchange gains (net) & other finance costs | 14.0 | -67.6 | -120.7% |
| Loss on debt extinguishment | – | -31.8 | – |
| Net finance cost | -77.3 | -309.6 | -75.0% |
| Pre-tax | 624.5 | 161.2 | 287.4% |
| Tax | -184.1 | -82.8 | 122.3% |
| Net income | 440.4 | 78.4 | 461.7% |
| Diluted EPS | 0.76 | 0.14 | 442.9% |
| Source: Amer Sports | |||
Despite accelerated investments, particularly in Salomon Softgoods, management underscored the structural strength of the business. The group is therefore looking ahead with confidence. CEO James Zheng said in the earnings call: “Given the continued momentum from our highest-margin Arc’teryx franchise, accelerating Salomon footwear growth, plus the solid foundation of our equipment franchises, we are confident in our ability to deliver another strong financial performance in 2026.”
Ambitious forecast for 2026
More specifically, the Finnish company is forecasting revenue growth of between 16 and 18 percent for 2026, considering positive currency effects of around 200 basis points. The gross margin is expected to rise to around 59 percent, while the operating margin is expected to climb to 13.1 to 13.3 percent – up from 12.8 percent in fiscal year 2025. The group expects adjusted earnings per share to range from $1.10 to $1.15. Despite accelerated investments, management is signaling further margin growth at the group level.
Arc’teryx and global momentum
This optimism is not unfounded. Amer Sports ended the fiscal year with a quarter that demonstrated both operational strength and strategic direction. The flagship brand Arc’teryx drove the Technical Apparel segment, which grew by 34 percent in the quarter and achieved an operating margin of 25.9 percent – a clear anchor of profitability in the portfolio. Salomon benefited from continued momentum in the footwear segment within the Outdoor Performance segment, which grew by 29 percent, even though the operating margin declined to 6.2 percent because of accelerated investments.
Ball & Racquet (Wilson) increased sales by 14 percent, continuing its stabilization. Regional momentum remained broadly based: While Greater China (+42%) and Asia Pacific (+53%) stood out, EMEA grew by 21 percent and the Americas by 18 percent. The final quarter was therefore not only strong in terms of growth but also demonstrated the structural breadth of the portfolio – from high-margin premium apparel to investment-driven expansion at Salomon.
| Amer - Revenues | ||||
|---|---|---|---|---|
| 2025 | 2024 | Change | ||
| Q4, ended Dec. 31 | ||||
| Regions | ||||
| Americas | 691.3 | 584.4 | 18.3% | |
| EMEA | 596.2 | 491.2 | 21.4% | |
| Greater China (1) | 544.2 | 383.9 | 41.8% | |
| Asia Pacific (2) | 269.4 | 176.0 | 53.1% | |
| Total | 2,101.1 | 1,635.5 | 28.5% | |
| Channels | ||||
| Wholesale | 948.4 | 802.7 | 18.2% | |
| DTC | 1,152.7 | 832.8 | 38.4% | |
| Total | 2,101.1 | 1,635.5 | 28.5% | |
| Segments | ||||
| Technical Apparel | 999.8 | 745.0 | 34.2% | |
| Outdoor Performance | 764.1 | 594.3 | 28.6% | |
| Ball & Racquet Sports | 337.2 | 296.2 | 13.8% | |
| Total | 2,101.1 | 1,635.5 | 28.5% | |
| FY, ended Dec. 31 | ||||
| Regions | ||||
| Americas | 2,125.6 | 1,859.0 | 14.3% | |
| EMEA | 1,805.8 | 1,513.4 | 19.3% | |
| Greater China (1) | 1,861.9 | 1,298.1 | 43.4% | |
| Asia Pacific (2) | 772.9 | 512.8 | 50.7% | |
| Total | 6,566.2 | 5,183.3 | 26.7% | |
| Channels | ||||
| Wholesale | 3,357.5 | 2,916.3 | 15.1% | |
| DTC | 3,208.7 | 2,267.0 | 41.5% | |
| Total | 6,566.2 | 5,183.3 | 26.7% | |
| Segments | ||||
| Technical Apparel | 2,855.8 | 2,194.3 | 30.1% | |
| Outdoor Performance | 2,403.7 | 1,835.5 | 31.0% | |
| Ball & Racquet Sports | 1,306.7 | 1,153.5 | 13.3% | |
| Total | 6,566.2 | 5,183.3 | 26.7% | |
| (1) Consists of mainland China, Hong Kong, Macau and Taiwan. | ||||
| (2) Excludes Greater China. | ||||
| Source: Amer Sports | ||||
At the expense of margins: Investment offensive at Salomon
Amer Sports strategically used the strong quarter to initiate the next phase of growth. CFO Andrew Page emphasized that the company had delivered despite accelerated investments: “We had another strong performance in Q4 with healthy sales growth, gross margin expansion and EPS, despite our decision to accelerate investment behind Salomon. The strong sales and profitability profile of the broader Amer portfolio gives us the flexibility to accelerate resources behind the large Salomon Softgoods opportunity, while still delivering great results at the group level.” The margin decline of around 100 basis points was thus deliberately accepted in order to support “key growth opportunities, particularly Salomon Softgoods.” The robust balance sheet provides a tailwind: “Ending 2025 with only 0.3x net leverage and more than $700 million in operating cash flow, we believe our financial foundation has never been stronger.” And Zheng put the thrust of the earnings call into perspective: “We believe our unique portfolio of technical sports and outdoor brands is very well positioned for strong and profitable growth within the premium sports and outdoor market.”
The year when the plan paid off
Looking at the year, it becomes clear why management is so confident. Amer Sports increased its revenue by 27 percent to $6.57 billion in 2025, while also improving its profitability: the adjusted operating margin improved by 170 basis points to 12.8 percent. Adjusted net income jumped 131 percent to $545m, with EPS reaching $0.97. This makes 2025 not only a year of growth, but also a year of scaling – higher volumes, better margins, rising cash flow.
Growth was driven by all three segments. Technical Apparel grew by 30 percent to $2.86 billion and achieved an operating margin of 21.6 percent – a clear profit driver in the portfolio. Outdoor Performance grew by as much as 31 percent to $2.40 billion and improved its margin to 12.5 percent, even though Q4 was already characterized by higher investments. Ball & Racquet contributed a 13 percent increase and returned to profitability for the year as a whole with a margin of 3.6 percent.
From equipment player to premium brand house
There is more to the accelerated investment in Salomon soft goods than just an expansion of the product range. Within the Amer portfolio, technical apparel is the business with the highest margins – in the fourth quarter, the operating margin was 25.9 percent, significantly higher than the outdoor performance segment at 6.2 percent. Soft goods are structurally considered to be more profitable because they offer higher gross margins, stronger DTC leverage, and less seasonality than traditional equipment categories. If Salomon can be consistently expanded in the apparel sector, this would not only broaden the sales profile but also increase the segment’s structural profitability. The decisive factor now will be whether the accelerated investments at Salomon translate quickly enough into market share and margins – in any case, the forecast for 2026 signals confidence in this leverage. This is ambitious, but not unrealistic.
In short, Amer is not growing in a one-sided manner, but rather on a broad basis – across brands, regions, and channels. This is precisely what gives the group the financial leeway to make targeted investments without jeopardizing the group’s margin. Just under two years after the IPO, it is clear that the brand portfolio is not only growing, but also structured in a way that is attractive to the capital market.
