Amer Sports(AS -3.95%) reported second-quarter 2025 results on August 19, 2025, with revenue growing 23% year-over-year (22% excluding currency), adjusted operating margin rising 260 basis points to 5.5%, and adjusted diluted EPS increasing to $0.06. Management raised full-year fiscal 2025 guidance for revenue (now 20%-21% growth), adjusted diluted EPS ($0.77 to $0.82), and adjusted margins, citing sustained momentum in Salomon and Arcteryx, coupled with robust Greater China and APAC growth and effective tariff mitigation. The analysis below focuses on Amer Sports accelerating brand expansion, channel leverage, and operational agility underpinning its global long-term growth story.
Salomon momentum drives Amer Sports growth
Greater China and Asia Pacific (APAC) revenue surged 42% and 45% year-over-year, respectively, as Salomon's store count in China increased from five locations pre-2022 to approximately 290 by year-end. The direct-to-consumer (D2C) channel for Salomon posted 63% year-over-year growth, and the brand delivered a 28% D2C omni comp, reflecting strong consumer demand and successful retail expansion.
"More importantly, the inflection of Salomon footwear adds a strong second leg of growth to Arcteryx's already exceptional sales and margin trajectory, significantly elevating the long-term value creation potential of our unique brand portfolio. Given our strong first-half results and continued operating and financial momentum and despite higher tariffs than assumed in our previous guidance, we are raising our full-year revenue and EPS expectations."
-- Andrew Page, CFO & Interim President/CEO Wilson
Salomon’s rapid expansion into new markets and channels is broadening Amer Sports' addressable market beyond technical outdoor to global sneaker and fashion segments, enhancing portfolio resilience and multi-region scalability.
Arcteryx D2C strategy lifts margins
Arcteryx grew D2C sales 31% year-over-year and achieved a 15% D2C omni comp despite a challenging two-year comparative, while the women’s segment outpaced the overall brand at over 30% revenue growth. The company’s focus on full-price stores and inventory management is supporting margin expansion and brand premium positioning.
"We are encouraged to see technical apparel momentum continue in the direct-to-consumer channel, where we generated a very solid 15% omni comp in Q2 despite facing the highest two-year omni comp comparison of 2025. Arcteryx stores continue to be critical to the growth strategy, especially how we engage with local consumers and the community. Arcteryx opened seven net new stores in Q2 with 12 openings offset by a closure of five legacy locations as part of our ongoing strategy to optimize the quality and productivity of our store fleet."
-- James Zheng, CEO
The progressive shift from outlet to full-price stores and disciplined inventory management are improving both gross margins and long-term profitability, reinforcing Amer Sports' premium brand positioning.
Amer Sports mitigates tariffs with pricing power
Higher U.S. tariffs on goods from China and select markets have had a negligible consolidated P&L impact due to Amer Sports’ global diversification, premium brand price elasticity, and geographic and product channel mix. Tariff impacts are modestly higher for Ball & Racquet, but robust mitigation strategies and Wilson’s roughly 10% product pricing actions offset most incremental costs.
"as far as Salomon and Arcteryx, we continue to, you know, acknowledge that we have untapped pricing flexibility that we will definitely lean into should we need to. But we've been able to navigate and mitigate, the tariff impact, without taking price thus far, in those other two brands. You know, with regard to the quant with, with regard to Wilson, for certain products it's been approximately 10%."
-- Andrew Page, CFO & Interim President/CEO Wilson
Amer Sports’ ability to absorb or offset external cost shocks without immediate recourse to broad consumer price hikes demonstrates pricing power, mitigates earnings volatility, and protects global demand elasticity across core brands.
Looking Ahead
For full-year fiscal 2025, Amer Sports raised its guidance to 20%-21% revenue growth (including a 100 basis point favorable FX impact), adjusted gross margin of approximately 57.5%, adjusted operating margin of 11.8%-12.2%, and adjusted diluted EPS of $0.77-$0.82 (561 million fully diluted shares). Technical Apparel revenue is expected to grow 22%-25%, Outdoor Performance sales growth guidance is 22%-25%, with negligible total group tariff impact projected. Management confirmed a solid operating cash flow trajectory, targets full-year net finance cost of approximately $105 million, and expects to return to normalized inventory growth rates by 2026 as supply chain optimization continues.
