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Amer Sports (AS +17%) is surging to a new post-IPO high today following its Q1 report this morning. This Finland-based athletic company (apparel, footwear, equipment, protective gear, accessories) reported its largest EPS upside of any quarter since making its IPO debut in February 2024. Revenue also grew a healthy 24.5% yr/yr to $1.47 bln, which was also better than expected. The in-line Q2 guidance was maybe a slight letdown. Also the FY25 EPS guidance increase was less than the Q1 upside, but AS perhaps is just being conservative as it's still early in the year.

• Its Technical Apparel segment led the way with sales up 28% (+32% CC) to $664 mln, reflecting omni-comp growth of +19%. Outdoor Performance also performed well with sales up 25% (+29% CC) to $502 mln while its Ball & Racquet Sports segment did not quite perform as well, but still posted a 12% (+13% CC) sales increase to $306 mln.
• AS saw continued broad-based strength from its flagship brand Arc'teryx. Footwear continues to be Arc'teryx's fastest-growing category. Consumers are responding positively to what AS believes is the best line of technical performance footwear designed for mountains. This spring, Arc'teryx launched the Norvan LD4 an elevation of its popular silhouette made for long distance mountain ranges. It also launched Vertex Speed. Looking forward, Arc'teryx has an exciting pipeline for shoe launches in 2H25.
• Women's also continued its momentum in Q1 with double-digit growth across all regions and channels, outperforming the rest of the Arc'teryx brand in every region. AS sees a big opportunity to serve women in the outdoor segment. The company is seeing rising brand awareness and affinity with women in the US and Europe as the brand has improved its fit, style, and function.
• Its Outdoor Performance segment was led by its Salomon brand for footwear and apparel. Global brand momentum behind Salomon's sneakers is accelerating. AS noted that, not only is Salomon growing very well in China and APAC, it's now also starting to impress in both the US and in Europe. Brand awareness has doubled over the past couple of years. Salomon sneakers surpassed $1 bln in sales in 2024 as Salomon offers technical features but are also great for everyday use.

Overall, this was a great quarter for Amer Sports, probably its best quarter since coming public early last year. What's impressive is that Amer Sports' yr/yr revenue growth has gotten larger each of its five quarters as a public company. That does not happen often. However, we think that its earnings reports are increasingly attracting attention from investors. Footwear has been in the news lately with Skechers (SKX) announcing a deal to be acquired and last week DKS said it's buying Foor Locker (FL). With increased focus on the industry, we think Amer Sports deserves a higher profile.