Amer Sports, the parent company of Salomon, Atomic and a handful of other brands reported a robust Q3 of 2024, with revenue rising 17 percent year-over-year to $1.35 billion, fueled by the strength of its premium outdoor and ski brands. Standout growth came from Arc’teryx, along with solid performances by Salomon, Peak Performance, and its ski-focused brands Atomic and Armada.
| Amer Sports - Income | |||
|---|---|---|---|
| 2024 | 2023 | Change | |
| Three months ended Sept. 30 ($ million) | |||
| Revenue | 1,353.8 | 1,153.1 | 17.4% |
| Cost of goods sold | 606.5 | 564.9 | 7.4% |
| Gross profit | 747.3 | 588.2 | 27.0% |
| SG&A expenses | 586.5 | 488.1 | 20.2% |
| Impairment gains | – | 2.9 | – |
| Other operating income | 15.9 | 1.7 | 835.3% |
| Operating profit | 176.7 | 104.7 | 68.8% |
| Finance income | 1.1 | 1.4 | -21.4% |
| Finance cost | 48.9 | 109.4 | -55.3% |
| Loss on debt extinguishment | – | – | – |
| Net finance cost | 47.8 | 108.0 | -55.7% |
| Pre-tax | 128.9 | -3.3 | – |
| Tax | 72.7 | 32.6 | 123.0% |
| Net income | 56.2 | -35.9 | -256.5% |
| Dilued EPS | 0.11 | -0.10 | – |
| Nine months ended Sept. 30 ($ million) | |||
| Revenue | 3,547.8 | 3,072.9 | 15.5% |
| Cost of goods sold | 1,593.5 | 1,460.5 | 9.1% |
| Gross profit | 1,954.3 | 1,612.4 | 21.2% |
| SG&A expenses | 1,698.1 | 1,368.5 | 24.1% |
| Impairment gains | -2.5 | -4.6 | 45.7% |
| Other operating income | 23.5 | 3.3 | 612.1% |
| Operating profit | 277.2 | 242.6 | 14.3% |
| Finance income | 6.3 | 4.5 | 40.0% |
| Finance cost | 178.9 | 296.6 | -39.7% |
| Loss on debt extinguishment | 14.3 | – | – |
| Net finance cost | 186.9 | 292.1 | -36.0% |
| Pre-tax | 90.3 | -49.5 | -282.4% |
| Tax | 29.0 | 64.4 | -55.0% |
| Net income | 61.3 | -113.9 | – |
| Dilued EPS | 0.12 | -0.30 | – |
| Source: Amer Sports | |||
Ball & Racquet Sports segment increased by 11%
- Amer reported that sales in his Ball & Racquet Sports (Wilson) segment increased by 11 percent to $300 million, driven by strong demand for tennis rackets and equipment. This segment achieved a remarkable margin improvement, rising by 600 basis points to 6.9 percent.
- The Technical Apparel (Arc’teryx, Peak Performance) segment’s revenue surged 34 percent to $520 million, with 20 percent growth in omni-channel revenue (retail and e-commerce combined). This segment delivered the highest operating margin at 20.0 percent, reflecting its premium market positioning and profitability.
- Revenue of the Outdoor Performance (Salomon, Atomic, Armada) segment grew 8 percent to $534 million. Although the operating margin slightly dipped by 40 basis points to 17.5 percent, the segment remained a solid contributor, driven by demand for ski equipment and outdoor gear.
“Our premium brands continue to take market share globally,” said CEO James Zheng, highlighting the Arc’teryx brand and Salomon footwear as key growth drivers. ”The combination of innovation and execution positions us to capitalize on significant growth opportunities.”
The group’s gross margin improved by 420 basis points, reaching 55.2 percent, largely due to a favorable premium product mix and operational efficiencies. Operating profit surged by 69 percent to $177 million, while the adjusted operating profit reached $195 million, including a $14 million government subsidy initially expected in Q4. This boosted the operating margin to 13.1 percent, with an adjusted operating margin climbing to 14.4 percent, an increase of 280 basis points.
| Amer Sports - Sales | ||||
|---|---|---|---|---|
| 2024 | 2023 | Change | ||
| Three months ended Sept. 30 ($ million) | ||||
| Regions | ||||
| EMEA | 429 | 413 | 3.9% | |
| Americas | 488 | 455 | 7.3% | |
| Greater China | 313 | 200 | 56.5% | |
| Asia-Pacific | 125 | 85 | 47.1% | |
| Total | 1,354 | 1,153 | 17.4% | |
| Channels | ||||
| Wholesale | 874 | 812 | 7.6% | |
| DTC | 480 | 341 | 40.8% | |
| Total | 1,354 | 1,153 | 17.4% | |
| Segments | ||||
| Technical Apparel | 520 | 389 | 33.7% | |
| Outdoor Performance | 534 | 495 | 7.9% | |
| Ball & Racquet Sports | 300 | 270 | 11.1% | |
| Total | 1,354 | 1,153 | 17.4% | |
| Nine months ended Sept. 30 ($ million) | ||||
| Regions | ||||
| EMEA | 1,022 | 1,003 | 1.9% | |
| Americas | 1,275 | 1,238 | 3.0% | |
| Greater China | 914 | 595 | 53.6% | |
| Asia-Pacific | 337 | 237 | 42.2% | |
| Total | 3,548 | 3,073 | 15.5% | |
| Channels | ||||
| Wholesale | 2,114 | 2,053 | 3.0% | |
| DTC | 1,434 | 1,020 | 40.6% | |
| Total | 3,548 | 3,073 | 15.5% | |
| Segments | ||||
| Technical Apparel | 1,449 | 1,055 | 37.3% | |
| Outdoor Performance | 1,241 | 1,149 | 8.0% | |
| Ball & Racquet Sports | 857 | 870 | -1.5% | |
| Total | 3,548 | 3,073 | 15.5% | |
| Source: Amer Sports | ||||
China and Asia Pacific with exceptional performance
The company also saw strong geographic performance, with Greater China and Asia Pacific continuing to deliver exceptional results driven by rising demand for winter sports gear and technical apparel. Meanwhile, growth in North America and the EMEA regions accelerated, supported by robust sales of Arc’teryx products, Salomon footwear and winter sports equipment.
Net income showed a remarkable increase of 257 percent, reaching $56 million. Adjusted net income reflected even more significant growth, rising by 651 percent to $71 million. This equated to diluted earnings per share of $0.14, underscoring the company’s ability to translate its operational success into tangible financial returns.
New leadership for Salomon
Effective Jan. 1, 2025, Guillaume Meyzenq, currently Chief Product Officer for Salomon, will assume the role of President and CEO of Salomon. Additionally, Michael Hauge Sørensen will step down as Chief Operating Officer and return to an advisory role on the Board of Directors.
Outlook and strategic vision
CFO Andrew Page announced a raised full-year guidance for 2024, with anticipated revenue growth of 16 to 17 percent and an operating margin reaching the high end of 10.5 to 11 percent. The company also projects sustained growth into 2025, with double-digit revenue increases and ongoing margin expansion.
