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Amer Sports Reports Second Quarter 2024 Financial Results, Company Raises Full Year Guidance

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Amer Sports (NYSE: AS) reported strong Q2 2024 results, exceeding expectations. Revenue increased 16% to $994 million, with Technical Apparel up 34%. Gross margin improved 220 basis points to 55.5%. Despite a small operating loss, adjusted operating profit rose 40% to $29 million. The company raised its full-year 2024 guidance, projecting 15-17% revenue growth and operating margin towards the high end of 10.5-11.0%. For Q3 2024, Amer Sports expects 12-13% revenue growth and 11.0-12.0% operating margin. Key brands like Arc'teryx showed exceptional growth, while Wilson returned to growth with a strong product pipeline for H2 2024.

Amer Sports (NYSE: AS) ha riportato risultati forti per il secondo trimestre del 2024, superando le aspettative. Il fatturato è aumentato del 16% raggiungendo 994 milioni di dollari, con l'abbigliamento tecnico in crescita del 34%. Il margine lordo è migliorato di 220 punti base, arrivando al 55,5%. Nonostante una piccola perdita operativa, il profitto operativo rettificato è aumentato del 40%, raggiungendo 29 milioni di dollari. L'azienda ha alzato le previsioni per l'intero anno 2024, prevedendo una crescita dei ricavi del 15-17% e un margine operativo verso l'estremità alta del 10,5-11,0%. Per il terzo trimestre del 2024, Amer Sports prevede una crescita dei ricavi del 12-13% e un margine operativo del 11,0-12,0%. Marchi chiave come Arc'teryx hanno mostrato una crescita eccezionale, mentre Wilson è tornato a crescere con una forte pipeline di prodotti per il secondo semestre del 2024.

Amer Sports (NYSE: AS) informó resultados sólidos para el segundo trimestre de 2024, superando las expectativas. Los ingresos aumentaron un 16% alcanzando los 994 millones de dólares, con la ropa técnica creciendo un 34%. El margen bruto mejoró 220 puntos básicos, alcanzando el 55,5%. A pesar de una pequeña pérdida operativa, el beneficio operativo ajustado aumentó un 40% hasta los 29 millones de dólares. La compañía elevó su guía para todo el año 2024, proyectando un crecimiento de ingresos del 15-17% y un margen operativo hacia el extremo alto del 10,5-11,0%. Para el tercer trimestre de 2024, Amer Sports espera un crecimiento de ingresos del 12-13% y un margen operativo del 11,0-12,0%. Marcas clave como Arc'teryx mostraron un crecimiento excepcional, mientras que Wilson volvió a crecer con una sólida oferta de productos para la segunda mitad de 2024.

Amer Sports (NYSE: AS)는 2024년 2분기 실적이 기대를 초과하여 강력한 결과를 보고했습니다. 수익은 16% 증가하여 9억 9,400만 달러에 도달했습니다, 기술 의류는 34% 성장했습니다. 총 마진은 220 베이시스 포인트 개선되어 55.5%에 달했습니다. 소규모 운영 손실에도 불구하고 조정된 운영 이익은 40% 증가하여 2,900만 달러에 이르렀습니다. 회사는 2024년 전체 연도 가이던스를 상향 조정했으며, 15-17%의 수익 성장과 10.5-11.0% 범위의 높은 운영 마진을 예상하고 있습니다. 2024년 3분기에는 12-13%의 수익 성장과 11.0-12.0%의 운영 마진을 기대하고 있습니다. Arc'teryx와 같은 주요 브랜드는 뛰어난 성장을 보였고, Wilson은 2024년 하반기를 위한 강력한 제품 파이프라인으로 다시 성장을 시작했습니다.

Amer Sports (NYSE: AS) a annoncé des résultats solides pour le deuxième trimestre 2024, dépassant les attentes. Les revenus ont augmenté de 16 % pour atteindre 994 millions de dollars, avec une hausse de 34 % pour les vêtements techniques. La marge brute s'est améliorée de 220 points de base, atteignant 55,5 %. Malgré une petite perte opérationnelle, le bénéfice opérationnel ajusté a augmenté de 40 % pour atteindre 29 millions de dollars. L'entreprise a relevé ses prévisions pour toute l'année 2024, anticipant une croissance des revenus de 15-17 % et une marge opérationnelle vers le haut du niveau de 10,5-11,0 %. Pour le troisième trimestre 2024, Amer Sports s'attend à une croissance des revenus de 12-13 % et une marge opérationnelle de 11,0-12,0 %. Des marques clés comme Arc'teryx ont montré une croissance exceptionnelle, tandis que Wilson a retrouvé la croissance grâce à une solide gamme de produits pour le deuxième semestre 2024.

Amer Sports (NYSE: AS) hat starke Ergebnisse für das zweite Quartal 2024 gemeldet, die die Erwartungen übertroffen haben. Der Umsatz stieg um 16% auf 994 Millionen Dollar, wobei die technische Bekleidung um 34% zulegte. Die Bruttomarge verbesserte sich um 220 Basispunkte auf 55,5%. Trotz eines kleinen Betriebsverlusts stieg der bereinigte Betriebsgewinn um 40% auf 29 Millionen Dollar. Das Unternehmen hob seine Prognose für das Gesamtjahr 2024 an und rechnet mit einem Umsatzwachstum von 15-17% und einer Betriebsmarke im oberen Bereich von 10,5-11,0%. Für das dritte Quartal 2024 erwartet Amer Sports ein Umsatzwachstum von 12-13% und eine Betriebsmarke von 11,0-12,0%. Schlüsselmarken wie Arc'teryx zeigten ein außergewöhnliches Wachstum, während Wilson mit einer starken Produktpipeline für das zweite Halbjahr 2024 wieder Wachstum zurückgewinnen konnte.

Positive
  • Revenue increased 16% to $994 million, or 18% on a constant currency basis
  • Gross margin improved 220 basis points to 55.5%
  • Technical Apparel segment revenue increased 34% to $407 million
  • Adjusted operating profit increased 40% to $29 million
  • Company raised full-year 2024 guidance, projecting 15-17% revenue growth
  • Inventories increased only 2%, well below revenue growth rate
  • Arc'teryx brand showed exceptional growth and profitability
Negative
  • Operating loss of $9 million compared to $8 million profit in Q2 2023
  • Ball & Racquet Sports segment operating margin decreased 160 basis points to 1.1%
  • Net debt stood at $1,820 million at quarter end

Insights

Amer Sports' Q2 2024 results showcase impressive growth and profitability. Revenue increased 16% to $994 million, with Technical Apparel segment leading at 34% growth. Adjusted gross margin expanded 200 basis points to 55.8%, indicating strong pricing power and operational efficiency.

The company's raised full-year guidance, projecting 15-17% revenue growth and operating margin at the high-end of 10.5-11.0%, signals management's confidence in sustained momentum. With inventory growth (2%) well below revenue growth, Amer Sports demonstrates effective supply chain management, important in the current economic environment.

However, investors should note the increased SG&A expenses and the high effective tax rate guidance of 38% for 2024, which could pressure bottom-line growth.

Amer Sports' portfolio strategy is proving highly effective, particularly in the premium sports and outdoor markets. The standout performance of Arc'teryx, with 26% omni-comp growth, indicates strong brand appeal and successful omnichannel execution. This success, coupled with Salomon's double-digit growth in soft goods, particularly footwear, suggests Amer Sports is capitalizing on the growing athleisure and outdoor recreation trends.

The company's strong performance in Greater China is noteworthy, bucking the trend of many Western brands struggling in this market. This success could provide a significant growth runway, especially as China's consumer market rebounds. The return to growth for Wilson, with a strong product pipeline for H2 2024, also bodes well for diversified revenue streams.

However, the Ball & Racquet Sports segment's modest 1% growth and declining operating margin warrant monitoring, as it may indicate challenges in this category.

  • Strong financial performance with sales, adjusted margins and EPS above expectations
  • Arc’teryx continues exceptional growth and profitability
  • Top-tier performance in Greater China
  • Double-digit growth in Salomon soft goods continues, notably footwear
  • Wilson returned to growth, with a strong product pipeline for the second half of 2024

HELSINKI--(BUSINESS WIRE)-- Amer Sports Inc. (NYSE: AS) (“Amer Sports” or the “Company”) announced its financial results for the second quarter of 2024.

CEO James Zheng commented, "I am very pleased by our financial and operational performance in the second quarter of 2024. Our unique portfolio of premium technical brands is taking share in sports and outdoor markets all around the world. Led by our flagship Arc'teryx brand, we well exceeded our own high expectations on all key financial metrics, positioning us to deliver another strong year in 2024."

SECOND QUARTER 2024 RESULTS

For the second quarter of 2024, compared to the second quarter of 2023:

  • Revenue increased 16% to $994 million, or increased 18% on a constant currency basis1. Revenues by segment:
    • Technical Apparel increased 34% to $407 million, or increased 38% on a constant currency basis. This reflects an omni-comp2 growth of 26%
    • Outdoor Performance increased 11% to $304 million, or increased 13% on a constant currency basis
    • Ball & Racquet Sports increased 1% to 283 million, or increased 2% on a constant currency basis
  • Gross margin increased 220 basis points to 55.5%; Adjusted gross margin increased 200 basis points to 55.8%.
  • Selling, general and administrative expenses increased 26% to $560 million; Adjusted selling, general and administrative expenses increased 21% to $526 million.
  • Operating loss was $9 million compared to operating profit of $8 million for the second quarter 2023. Adjusted operating profit increased 40% to $29 million.
  • Operating margin decreased 180 basis points to (0.9)%. Adjusted operating margin increased 50 basis points to 2.9%. Adjusted operating margin by segment:
    • Technical Apparel increased 110 basis points to 14.2%.
    • Outdoor Performance increased 380 basis points to (2.1)%.
    • Ball & Racquet Sports decreased 160 basis points to 1.1%.
  • Net loss decreased 98% to $4 million, or $(0.01) diluted loss per share; Adjusted net income increased 129% to $25 million, or $0.05 diluted earnings per share.

Balance sheet. Year-over-year inventories increased 2%, below the 16% revenue growth for the quarter and in a healthy position. Net debt3 was $1,820 million, and cash and equivalents totaled $256 million at quarter end.

1

Constant currency revenue is calculated by translating the current period reported amounts using the actual exchange rates in use during the comparative prior period, in place of the exchange rates in use during the current period.

2

Omni-comp reflects year over year revenue growth from owned retail stores and e-commerce sites that have been open at least 13 months.

3

Net debt is defined as the principal value of loans from financial institutions and other interest-bearing liabilities, less cash and cash equivalents.

 

OUTLOOK

CFO Andrew Page said, “Our strong financial performance in Q2 reinforces my confidence in our near- and long-term path forward. Organic revenue growth in the high-teens and significant gross- and operating-margin expansion reflects the combination of great brands, strong management execution, and a disciplined approach to expenses and working capital. These outstanding results give us the confidence to raise our full-year sales and earnings guidance."

FULL-YEAR 2024

Amer Sports is updating guidance for the year ending December 31, 2024 (all guidance figures reference adjusted amounts):

  • Reported revenue growth: 15 - 17%
  • Gross margin: approximately 54.5%
  • Operating margin: toward high-end of 10.5 - 11.0%
  • D&A: approximately $250 million, including approximately $110 million of ROU depreciation
  • Net finance cost: $200 - $220 million, including approximately $15 million of finance costs in the first quarter 2024 that won’t be recurring
  • Effective tax rate: approximately 38%
  • Fully diluted share count: 500 million
  • Fully diluted EPS: $0.40 - $0.44
  • Technical Apparel: greater than 30% revenue growth; segment operating margin slightly above 20%
  • Outdoor Performance: mid-to-high-single-digit revenue growth; segment operating margin high-single digit %.
  • Ball & Racquet: low-to-mid single-digit revenue growth, and low-to-mid single-digit segment operating margin

Note: In the second quarter, we recognized an incremental tax benefit of $20 million related primarily to the resolution of uncertain tax positions, which benefited Q2 diluted EPS by approximately $0.04 per share. Additionally, approximately $20 million of wholesale orders shipped earlier than anticipated, which benefited Q2 sales growth by approximately 2% and diluted EPS by $0.01 per share. These timing shifts do not impact our full year guidance.

THIRD QUARTER 2024

Amer Sports is providing the following guidance for the third quarter ending September 30, 2024 (all guidance figures reference adjusted amounts):

  • Reported revenue growth: 12 - 13%
  • Gross margin: approximately 54.0%
  • Operating margin: 11.0 - 12.0%
  • Net finance cost: $45 - $50 million
  • Effective tax rate: 50 - 55%
  • Fully diluted share count: 510 million
  • Fully diluted EPS: $0.08 - $0.10

Other than with respect to revenue, Amer Sports only provides guidance on a non-IFRS basis. The Company does not provide a reconciliation of forward-looking non-IFRS measures to the most directly comparable IFRS Accounting Standards measures due to the difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations without unreasonable efforts. The Company is unable to address the probable significance of the unavailable reconciling items, which could have a potentially significant impact on its future IFRS financial results. The above outlook reflects the Company’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change. Actual results may differ materially from these forward-looking statements, including as a result of, among other things, the factors described under “Forward-Looking Statements” below and in our filings with the SEC.

CONFERENCE CALL INFORMATION

The Company's conference call to review the results for the second quarter 2024 will be webcast live today, Tuesday, August 20, 2024 at 8:00 a.m. Eastern Time and can be accessed at https://investors.amersports.com.

ABOUT AMER SPORTS

Amer Sports is a global group of iconic sports and outdoor brands, including Arc’teryx, Salomon, Wilson, Peak Performance, and Atomic. Our brands are known for their detailed craftsmanship, unwavering authenticity, and premium market positioning. As creators of exceptional apparel, footwear, and equipment, we pride ourselves on cutting-edge innovation, performance, and designs that allow elite athletes and everyday consumers to perform their best.

With over 11,400 employees globally, Amer Sports’ purpose is to elevate the world through sport. Our vision is to be the global leader in premium sports and outdoor brands. With corporate offices in Helsinki, Munich, Kraków, New York, and Shanghai, we have operations in 40+ countries and our products are sold in 100+ countries. Amer Sports generated $4.4 billion of revenue in 2023. Amer Sports, Inc. shares are listed on the New York Stock Exchange. For more information, visit www.amersports.com.

NON-IFRS MEASURES

Adjusted gross profit margin, adjusted SG&A expenses, adjusted operating profit margin, adjusted EBITDA, adjusted net (loss)/income, and adjusted diluted (loss)/income per share are financial measures that are not defined under IFRS Accounting Standards. Adjusted gross profit margin is calculated as adjusted gross profit divided by revenue. Adjusted gross profit is calculated as gross profit excluding amortization related to certain purchase price adjustments (PPA) in connection with the acquisition and delisting of Amer Sports in 2019 and restructuring expenses. Adjusted SG&A also excludes PPA amortization, as well as adjustments to exclude restructuring expenses, expenses related to transaction activities, expenses related to certain legal proceedings, and certain share-based payments. Adjusted operating profit margin is calculated as adjusted operating profit divided by revenue. Adjusted operating profit is calculated as loss before tax with adjustments to exclude PPA amortization, restructuring expenses, impairment losses on goodwill and intangible assets, expenses related to transaction activities, expenses related to certain legal proceedings, certain share-based payments, finance costs, and finance income. EBITDA is calculated as net (loss)/income attributable to equity holders of the Company, plus net income attributable to non-controlling interests, income tax expense, finance cost, loss on debt extinguishment, depreciation and amortization and minus finance income, from both continuing and discontinued operations. Adjusted EBITDA is calculated as EBITDA with adjustments to exclude results from discontinued operations, restructuring expenses, impairment losses on goodwill and intangible assets, expenses related to transaction activities, expenses related to certain legal proceedings and certain share-based payments. Adjusted net (loss)/income is calculated as net (loss)/income attributable to equity holders with adjustments to exclude PPA amortization, loss from discontinued operations, restructuring expenses, impairment losses on goodwill and intangible assets, expenses related to transaction activities, expenses related to certain legal proceedings, certain share-based payments, loss on debt extinguishment and related income tax expense. “Omni-comp” is defined as year over year revenue growth from owned retail stores and e-commerce sites that have been open at least 13 months.

The Company believes that these non IFRS measures, when taken together with its financial results presented in accordance with IFRS Accounting Standards, provide meaningful supplemental information regarding its operating performance and facilitate internal comparisons of its historical operating performance on a more consistent basis by excluding certain items that may not be indicative of our business, results of operations or outlook. In particular, adjusted EBITDA and adjusted net (loss)/income are helpful to investors as they are measures used by management in assessing the health of the business and evaluating operating performance, as well as for internal planning and forecasting purposes. Non-IFRS financial measures however are subject to inherent limitations, may not be comparable to similarly titled measures used by other companies and should not be considered in isolation or as an alternative to IFRS measures. The supplemental tables below provide reconciliations of each non-IFRS financial measure presented to its most directly comparable IFRS Accounting Standards financial measure.

FORWARD LOOKING STATEMENTS

This press release includes estimates, projections, statements relating to the business plans, objectives, and expected operating results of the Company that are “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. In many cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “target,” “outlook,” “believes,” “intends,” “estimates,” “predicts,” “potential” or the negative of these terms or other comparable terminology. These forward looking statements include, without limitation, guidance and outlook statements, our long-term targets and algorithm, statements regarding our ability to meet environmental, social and governance goals, expectations regarding industry trends and the size and growth rates of addressable markets, and statements regarding our business plan and our growth strategies. These statements are based on management’s current expectations but they involve a number of risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in the forward-looking statements as a result of factors relating to, without limitation: the strength of our brands; changes in market trends and consumer preferences; intense competition that our products, services and experiences face; harm to our reputation that could adversely impact our ability to attract and retain consumers and wholesale partners, employees, brand ambassadors, partners, and other stakeholders; reliance on technical innovation and high-quality products; general economic and business conditions worldwide, including due to inflationary pressures; the strength of our relationships with and the financial condition of our third-party suppliers, manufacturers, wholesale partners and consumers; ability to expand our DTC channel, including our expansion and success of our owned retail stores and e-commerce platform; our plans to innovate, expand our product offerings and successfully implement our growth strategies that may not be successful, and implementation of these plans that may divert our operational, managerial and administrative resources; our international operations, including any related to political uncertainty and geopolitical tensions; our and our wholesale partners’ ability to accurately forecast demand for our products and our ability to manage manufacturing decisions; our third party suppliers, manufacturers and other partners, including their financial stability and our ability to find suitable partners to implement our growth strategy; the cost of raw materials and our reliance on third-party manufacturers; our distribution system and ability to deliver our brands’ products to our wholesale partners and consumers; climate change and sustainability or ESG-related matters, or legal, regulatory or market responses thereto; changes to trade policies, tariffs, import/export regulations, anti-competition regulations and other regulations in the United States, EU, PRC and other jurisdictions, or our failure to comply with such regulations; ability to obtain, maintain, protect and enforce our intellectual property rights in our brands, designs, technologies and proprietary information and processes; ability to defend against claims of intellectual property infringement, misappropriation, dilution or other violations made by third parties against us; security breaches or other disruptions to our IT systems; changes in government regulation and tax matters; our ability to remediate our material weakness in our internal control over financial reporting; our relationship with our significant shareholders; other factors that may affect our financial condition, liquidity and results of operations; and other risks and uncertainties set out in filings made from time to time with the SEC and available at www.sec.gov, including, without limitation, our reports on Form 20-F and Form 6-K. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements. The forward-looking statements made herein speak only as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances, except as may be required by law.

Source: Amer Sports, Inc.

 

CONSOLIDATED STATEMENTS OF INCOME AND LOSS
For the Three and Six Months Ended June 30, 2024 and 2023
(Unaudited; $ in millions, except per share information)

 
 

 

 

Three months ended
June 30,

 

Six months ended
June 30,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

993.8

 

 

$

856.8

 

 

$

2,176.7

 

 

$

1,907.1

 

Cost of goods sold

 

 

(442.5

)

 

 

(400.2

)

 

 

(986.9

)

 

 

(895.6

)

Gross profit

 

 

551.3

 

 

 

456.6

 

 

 

1,189.8

 

 

 

1,011.5

 

Selling, general and administrative expenses

 

 

(560.2

)

 

 

(445.3

)

 

 

(1,094.4

)

 

 

(867.7

)

Impairment losses

 

 

(1.2

)

 

 

(4.7

)

 

 

(2.5

)

 

 

(7.5

)

Other operating income

 

 

1.6

 

 

 

0.9

 

 

 

7.6

 

 

 

1.6

 

Operating (loss)/profit

 

 

(8.5

)

 

 

7.5

 

 

 

100.5

 

 

 

137.9

 

 

 

 

 

 

 

 

 

 

Finance income

 

 

2.5

 

 

 

1.8

 

 

 

5.2

 

 

 

3.1

 

Finance cost

 

 

(47.7

)

 

 

(101.1

)

 

 

(130.0

)

 

 

(187.2

)

Loss on debt extinguishment

 

 

-

 

 

 

-

 

 

 

(14.3

)

 

 

-

 

Net finance cost

 

 

(45.2

)

 

 

(99.3

)

 

 

(139.1

)

 

 

(184.1

)

 

 

 

 

 

 

 

 

 

Loss before tax

 

 

(53.7

)

 

 

(91.8

)

 

 

(38.6

)

 

 

(46.2

)

 

 

 

 

 

 

 

 

 

Income tax benefit/(expense)

 

 

51.9

 

 

 

(5.2

)

 

 

43.7

 

 

 

(31.9

)

 

 

 

 

 

 

 

 

 

Net (loss)/income

 

$

(1.8

)

 

$

(97.0

)

 

$

5.1

 

 

$

(78.1

)

 

 

 

 

 

 

 

 

 

(Loss)/Income attributable to:

 

 

 

 

 

 

 

 

Equity holders of the Company

 

$

(3.7

)

 

$

(96.9

)

 

$

1.4

 

 

$

(78.0

)

Non-controlling interests

 

$

1.9

 

 

$

(0.1

)

 

$

3.7

 

 

$

(0.1

)

 

 

 

 

 

 

 

 

 

(Loss)/Earnings per share

 

 

 

 

 

 

 

 

Basic (loss)/earnings per share

 

$

(0.01

)

 

$

(0.25

)

 

$

0.00

 

 

$

(0.20

)

Diluted (loss)/earnings per share

 

$

(0.01

)

 

$

(0.25

)

 

$

0.00

 

 

$

(0.20

)

 

 

 

 

 

 

 

 

 

Weighted-average number of ordinary shares

 

 

 

 

 

 

 

 

Basic

 

 

505,249,607

 

 

 

384,499,607

 

 

 

483,672,684

 

 

 

384,499,607

 

Diluted

 

 

505,249,607

 

 

 

384,499,607

 

 

 

486,601,577

 

 

 

384,499,607

 

 

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As of June 30, 2024 and December 31, 2023
(Unaudited; $ in millions)

 
 

($ in millions)

 

June 30,
2024

 

December 31,
2023

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

NON-CURRENT ASSETS

 

 

 

 

 

 

 

 

 

Intangible assets

 

$

2,700.5

 

$

2,748.7

Goodwill

 

 

2,246.3

 

 

2,270.0

Property, plant and equipment

 

 

481.0

 

 

441.9

Right-of-use assets

 

 

402.9

 

 

317.1

Non-current financial assets

 

 

9.0

 

 

9.2

Other non-current assets

 

 

56.7

 

 

73.5

Deferred tax assets

 

 

155.6

 

 

161.7

TOTAL NON-CURRENT ASSETS

 

 

6,052.0

 

 

6,022.1

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

 

Inventories

 

 

1,241.0

 

 

1,099.6

Accounts receivable, net

 

 

425.5

 

 

599.8

Prepaid expenses and other receivables

 

 

219.2

 

 

162.3

Current tax assets

 

 

51.1

 

 

6.6

Cash and cash equivalents

 

 

255.9

 

 

483.4

TOTAL CURRENT ASSETS

 

 

2,192.7

 

 

2,351.7

 

 

 

 

 

TOTAL ASSETS

 

 

8,244.7

 

 

8,373.8

 

 

 

 

 

SHAREHOLDERS' EQUITY (DEFICIT) AND LIABILITIES

 

 

 

 

 

 

 

 

 

EQUITY (DEFICIT)

 

 

 

 

 

 

 

 

 

Share capital

 

 

16.9

 

 

 

642.2

 

Share premium

 

 

2,133.4

 

 

 

 

Capital reserve

 

 

2,789.2

 

 

 

227.2

 

Cash flow hedge reserve

 

 

8.4

 

 

 

(10.6

)

Accumulated deficit and other

 

 

(941.3

)

 

 

(1,019.0

)

Equity (deficit) attributable to equity holders of the parent company

 

 

4,006.6

 

 

 

(160.2

)

Non-controlling interests

 

 

7.1

 

 

 

3.4

 

TOTAL EQUITY (DEFICIT)

 

 

4,013.7

 

 

 

(156.8

)

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

LONG-TERM LIABILITIES

 

 

 

 

Lease liabilities

 

$

329.8

 

 

$

250.4

 

Loans from financial institutions

 

 

2,013.9

 

 

 

1,863.4

 

Loans from related parties

 

 

 

 

 

4,077.0

 

Defined benefit pension liabilities

 

 

16.5

 

 

 

23.9

 

Other long-term liabilities

 

 

23.0

 

 

 

29.4

 

Provisions

 

 

5.4

 

 

 

5.5

 

Long-term tax liabilities

 

 

11.4

 

 

 

32.1

 

Deferred tax liabilities

 

 

660.2

 

 

 

675.0

 

TOTAL LONG-TERM LIABILITIES

 

 

3,060.2

 

 

 

6,956.7

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Interest-bearing liabilities

 

 

31.6

 

 

 

381.0

 

Lease liabilities

 

 

101.7

 

 

 

89.4

 

Accounts payable

 

 

454.3

 

 

 

426.5

 

Other current liabilities

 

 

555.0

 

 

 

567.5

 

Provisions

 

 

28.2

 

 

 

29.9

 

Current tax liabilities

 

 

 

 

 

79.6

 

TOTAL CURRENT LIABILITIES

 

 

1,170.8

 

 

 

1,573.9

 

 

 

 

 

 

TOTAL LIABILITIES

 

 

4,231.0

 

 

 

8,530.6

 

 

 

 

 

 

TOTAL SHAREHOLDERS’ EQUITY (DEFICIT) AND LIABILITIES

 

$

8,244.7

 

 

$

8,373.8

 

 

GEOGRAPHIC REVENUES
For the Three and Six Months Ended June 30, 2024 and 2023
(Unaudited; $ in millions)

 
 

 

 

Three months ended
June 30,

 

Six months ended
June 30,

($ in millions)

 

2024

 

2023

 

% Change

 

2024

 

2023

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

Geographic Revenues

 

 

 

 

 

 

 

 

 

 

 

 

EMEA

 

$

232

 

$

230

 

1%

 

$

590

 

$

587

 

1%

Americas

 

 

368

 

 

366

 

1%

 

 

777

 

 

776

 

0%

Greater China (1)

 

 

289

 

 

188

 

54%

 

 

599

 

 

393

 

52%

Asia Pacific (2)

 

 

106

 

 

73

 

45%

 

 

210

 

 

151

 

39%

Total

 

$

994

 

$

857

 

16%

 

$

2,177

 

$

1,907

 

14%

 

(1) Consists of mainland China, Hong Kong, Macau and Taiwan.

(2) Excludes Greater China.

 

CHANNEL REVENUES
For the Three and Six Months Ended June 30, 2024 and 2023
(Unaudited; $ in millions)

 
 

 

 

Three months ended

June 30,

 

Six months ended
June 30,

($ in millions)

 

2024

 

2023

 

% Change

 

2024

 

2023

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

Channel Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale

 

$

545

 

$

536

 

2%

 

$

1,239

 

$

1,239

 

0%

DTC

 

 

449

 

 

321

 

40%

 

 

938

 

 

669

 

40%

Total

 

$

994

 

$

857

 

16%

 

$

2,177

 

$

1,907

 

14%

 

SEGMENT REVENUES
For the Three and Six Months Ended June 30, 2024 and 2023
(Unaudited; $ in millions)

 
 

 

 

Three months ended
June 30,

 

Six months ended
June 30,

($ in millions)

 

2024

 

2023

 

% Change

 

2024

 

2023

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Revenue

 

 

 

 

 

 

 

 

 

 

 

 

Technical Apparel

 

$

407

 

$

303

 

34%

 

$

918

 

$

658

 

39%

Outdoor Performance

 

 

304

 

 

274

 

11%

 

 

704

 

 

651

 

8%

Ball & Racquet Sports

 

 

283

 

 

280

 

1%

 

 

555

 

 

598

 

(7)%

Total

 

$

994

 

$

857

 

16%

 

$

2,177

 

$

1,907

 

14%

 

SEGMENT ADJUSTED OPERATING PROFIT
For the Three and Six Months Ended June 30, 2024 and 2023
(Unaudited; $ in millions)

 
 

 

 

Three months ended June 30,

 

Six months ended June 30,

($ in millions)

 

 

2024

 

 

% of
Segment
Revenues
(2)

 

 

2023

 

 

% of
Segment
Revenues
(2)

 

 

2024

 

 

% of
Segment
Revenues
(2)

 

 

2023

 

 

% of

Segment
Revenues
(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Adjusted Operating Profit/(Loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Technical Apparel

 

$

58

 

 

14.2%

 

$

40

 

 

13.1%

 

$

175

 

 

19.1%

 

$

123

 

 

18.6%

Outdoor Performance

 

 

(7

)

 

(2.1)%

 

 

(16

)

 

(5.9)%

 

 

13

 

 

1.8%

 

 

15

 

 

2.3%

Ball & Racquet Sports

 

 

3

 

 

1.1%

 

 

7

 

 

2.7%

 

 

14

 

 

2.5%

 

 

53

 

 

8.9%

Reconciliation (1)

 

 

(25

)

 

NM

 

 

(10

)

 

NM

 

 

(43

)

 

NM

 

 

(29

)

 

NM

Total

 

$

29

 

 

2.9%

 

$

21

 

 

2.4%

 

$

159

 

 

7.3%

 

$

162

 

 

8.5%

 

(1) Includes corporate expenses, which have not been allocated to the reportable segments.

(2) The operating loss as a percentage of revenues for the Reconciliation is not presented as it is not a meaningful metric (NM).

 

SEGMENT DTC OPERATING DATA
As of June 30, 2024 and 2023
(Unaudited)

 
 

 

 

June 30,

 

 

 

 

2024

 

2023

 

% Change

 

 

 

 

 

 

 

Store count (1)

 

 

 

 

 

 

Technical Apparel

 

203

 

174

 

17%

Outdoor Performance

 

162

 

113

 

43%

Ball & Racquet

 

26

 

12

 

117%

Total

 

391

 

299

 

31%

 

 

 

 

 

 

 

Omni-comp (2)

 

 

 

 

 

 

Technical Apparel

 

26 %

 

80 %

 

 

Outdoor Performance

 

32 %

 

36 %

 

 

Ball & Racquet

 

1 %

 

18 %

 

 

 

(1) Reflects the number of owned retail stores open at the end of the fiscal period for each segment

(2) Omni-comp reflects year over year revenue growth from owned retail stores and e-commerce sites that have been open at least 13 months

 

ADJUSTED GROSS PROFIT RECONCILIATION
For the Three and Six Months Ended June 30, 2024 and 2023
(Unaudited; $ in millions)

 
 

 

 

Three months ended
June 30,

 

Six months ended
June 30,

($ in millions)

 

 

2024

 

2023

 

 

2024

 

2023

 

 

 

 

 

 

 

 

 

Gross Profit

 

$

551

 

$

457

 

$

1,190

 

$

1,012

PPA

 

 

4

 

 

4

 

 

7

 

 

7

Adjusted Gross Profit

 

$

555

 

$

461

 

$

1,197

 

$

1,019

 

ADJUSTED SG&A RECONCILIATION (1)
For the Three and Six Months Ended June 30, 2024 and 2023
(Unaudited; $ in millions)

 
 

 

 

Three months ended
June 30,

 

Six months ended
June 30,

($ in millions)

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

$

(560

)

 

$

(445

)

 

$

(1,094

)

 

$

(868

)

Restructuring expenses

 

 

9

 

 

 

 

 

 

10

 

 

 

 

PPA

 

 

7

 

 

 

7

 

 

 

14

 

 

 

14

 

Expenses related to transaction activities

 

 

12

 

 

 

3

 

 

 

18

 

 

 

3

 

Share-based payments

 

 

6

 

 

 

 

 

 

9

 

 

 

 

Adjusted SG&A expenses

 

$

(526

)

 

$

(436

)

 

$

(1,043

)

 

$

(851

)

 

(1) The presented figures and percentages are subject to rounding adjustments, which may cause discrepancies between the sum of the individual figures and the presented aggregated column and row totals.

 

ADJUSTED OPERATING PROFIT RECONCILIATION (1)
For the Three and Six Months Ended June 30, 2024 and 2023
(Unaudited; $ in millions)

 
 

 

 

Three months ended
June 30,

 

Six months ended
June 30,

($ in millions)

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

Loss before tax

 

$

(54

)

 

$

(92

)

 

$

(39

)

 

$

(46

)

PPA

 

 

11

 

 

 

11

 

 

 

21

 

 

 

21

 

Restructuring expenses

 

 

9

 

 

 

 

 

 

10

 

 

 

 

Expenses related to transaction activities

 

 

12

 

 

 

3

 

 

 

18

 

 

 

3

 

Share-based payments

 

 

6

 

 

 

 

 

 

9

 

 

 

 

Finance costs

 

 

48

 

 

 

101

 

 

 

130

 

 

 

187

 

Loss on debt extinguishment

 

 

 

 

 

 

 

 

14

 

 

 

 

Finance income

 

 

(3

)

 

 

(2

)

 

 

(5

)

 

 

(3

)

Adjusted operating profit

 

$

29

 

 

$

21

 

 

$

159

 

 

$

162

 

 

(1) The presented figures and percentages are subject to rounding adjustments, which may cause discrepancies between the sum of the individual figures and the presented aggregated column and row totals.

 

ADJUSTED NET INCOME RECONCILIATION (1)
For the Three and Six Months Ended June 30, 2024 and 2023
(Unaudited; $ in millions, except per share information)

 
 

 

 

Three months ended
June 30,

 

Six months ended
June 30,

($ in millions)

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

Net (loss)/income attributable to equity holders

 

$

(4

)

 

$

(97

)

 

$

1

 

 

$

(78

)

PPA

 

 

11

 

 

 

11

 

 

 

21

 

 

 

21

 

Restructuring expenses

 

 

9

 

 

 

 

 

 

10

 

 

 

 

Expenses related to transaction activities (2)

 

 

12

 

 

 

3

 

 

 

36

 

 

 

3

 

Share-based payments

 

 

6

 

 

 

 

 

 

9

 

 

 

 

Loss on debt extinguishment

 

 

 

 

 

 

 

 

14

 

 

 

 

Income tax expense

 

 

(9

)

 

 

(3

)

 

 

(18

)

 

 

(5

)

Adjusted net income/(loss) attributable to equity holders

 

$

25

 

 

$

(86

)

 

$

75

 

 

$

(59

)

Adjusted weighted-average dilutive shares outstanding (3)

 

 

508,319,702

 

 

 

384,499,607

 

 

 

486,601,577

 

 

 

384,499,607

 

Adjusted total diluted earnings/(loss) per share

 

$

0.05

 

 

$

(0.22

)

 

$

0.15

 

 

$

(0.15

)

 

(1) The presented figures and percentages are subject to rounding adjustments, which may cause discrepancies between the sum of the individual figures and the presented aggregated column and row totals.

 

(2) Includes approximately $18 million of foreign currency exchange losses related to contract costs incurred in association with our IPO, which are classified as Finance costs on the Consolidated Statement of Income and Loss, for the six months ended June 30, 2024.

 

(3) As we have a net loss on an IFRS basis for the three months ended June 30, 2024,weighted-average dilutive shares outstanding equals weighted-average basic shares outstanding. Adjusted total dilutive income per share for the three months ended June 30, 2024, includes the dilutive impact of 3,070,095 shares in accordance with IAS 33, Earnings Per Share, as we have net income on an adjusted basis.

 

EBITDA, ADJUSTED EBITDA, AND ADJUSTED EBITDA MARGIN RECONCILIATION (1)
For the Three and Six Months Ended June 30, 2024 and 2023
(Unaudited; $ in millions)

 
 

 

 

Three months ended
June 30,

 

Six months ended
June 30,

($ in millions)

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

994

 

 

$

857

 

 

$

2,177

 

 

$

1,907

 

Net (loss)/income attributable to equity holders

 

$

(4

)

 

$

(97

)

 

$

1

 

 

$

(78

)

Net income attributable to non-controlling interests

 

 

2

 

 

 

 

 

 

4

 

 

 

 

Income tax (benefit)/expense

 

 

(52

)

 

 

5

 

 

 

(44

)

 

 

32

 

Finance cost (2)

 

 

48

 

 

 

101

 

 

 

130

 

 

 

187

 

Loss on debt extinguishment

 

 

 

 

 

 

 

 

14

 

 

 

 

Depreciation and amortization (3)

 

 

63

 

 

 

52

 

 

 

125

 

 

 

104

 

Finance income

 

 

(3

)

 

 

(2

)

 

 

(5

)

 

 

(3

)

EBITDA

 

 

54

 

 

 

60

 

 

 

226

 

 

 

242

 

Restructuring expenses

 

 

9

 

 

 

 

 

 

10

 

 

 

 

Expenses related to transaction activities

 

 

12

 

 

 

3

 

 

 

18

 

 

 

3

 

Share-based payments

 

 

6

 

 

 

 

 

 

9

 

 

 

 

Adjusted EBITDA

 

$

81

 

 

$

63

 

 

$

263

 

 

$

245

 

Net (loss)/income margin

 

 

(0.4

)%

 

 

(11.3

)%

 

 

0.1

%

 

 

(4.1

)%

Adjusted EBITDA Margin

 

 

8.2

%

 

 

7.3

%

 

 

12.1

%

 

 

12.9

%

 

(1) The presented figures and percentages are subject to rounding adjustments, which may cause discrepancies between the sum of the individual figures and the presented aggregated column and row totals.

 

(2) Total interest expense on lease liabilities under IFRS 16, Leases was $4.9 million and $2.0 million for the three months ended June 30, 2024, and 2023, and $9.2 million and $4.0 million for the six months ended June 30, 2024, and 2023, respectively.

 

(3) Depreciation and amortization includes amortization expense for right-of-use assets capitalized under IFRS 16, Leases of $29.2 million and $19.3 million for the three months ended June 30, 2024, and 2023, and $55.7 million and $38.1 million for the six months ended June 30, 2024, and 2023, respectively.

 

Investor Relations:



Omar Saad

Vice President, Finance and Investor Relations

omar.saad@amersports.com



Media:



Anu Sirkiä

Senior Vice President, Communications

anu.sirkia@amersports.com

Source: Amer Sports, Inc.

FAQ

What was Amer Sports' (AS) revenue growth in Q2 2024?

Amer Sports reported a 16% increase in revenue to $994 million in Q2 2024, or 18% growth on a constant currency basis.

How did Amer Sports' (AS) Technical Apparel segment perform in Q2 2024?

The Technical Apparel segment increased revenue by 34% to $407 million, or 38% on a constant currency basis, with an omni-comp growth of 26%.

What is Amer Sports' (AS) updated full-year 2024 revenue growth guidance?

Amer Sports raised its full-year 2024 guidance, now projecting reported revenue growth of 15-17%.

What is Amer Sports' (AS) expected Q3 2024 revenue growth and operating margin?

For Q3 2024, Amer Sports expects reported revenue growth of 12-13% and an operating margin of 11.0-12.0%.

Amer Sports, Inc.

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