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Amer Sports (AS) is heading lower after reporting strong Q4 results this morning. The premium sports and outdoor company beat EPS expectations, while revenue jumped 28.5% yr/yr to $2.10 bln, also above expectations. The issue for investors appears to be guidance as Q1 and FY26 EPS came in below consensus at $0.28-0.30 and $1.10-1.15, respectively, though revenue guidance was strong and above expectations. AS expects Q1 revenue growth of 22-24% or about $1.80-1.83 bln and FY26 revenue growth of 16-18% or about $7.62-7.75 bln, building on 27% growth in FY25.

• Technical Apparel led the way in Q4, with revenue increasing 34% (vs +31% in Q3) to $1.0 bln, reflecting a strong +16% omni-comp driven by continued strength in Arc'teryx across regions and channels.
• Encouragingly, adj. operating margin in the segment increased 160 bps to 25.9%, helped by full-price selling and lower promotional activity, suggesting strong underlying demand.
• Outdoor Performance followed, with revenue increasing 29% (+36% in Q3), driven by continued strength in Salomon footwear and apparel, with broad momentum across regions.
• Outdoor Performance adj. operating margin fell 490 bps to 6.2%, reflecting accelerated investment behind Salomon, including marketing, retail expansion, and talent.
• Ball & Racquet revenue increased 14% to $337 mln, extending its recent run of double-digit growth, fueled by Wilson Softgoods, baseball, and golf. Softgoods now represents 15% of segment revenue.
• At the group level, adj. operating margin fell 110 bps to 12.5%, reflecting the heavier SG&A investment, though adj. gross margin expanded 140 bps to 57.8% on favorable segment, regional, and channel mix.
• In terms of guidance, AS continues to expect only an immaterial group P&L impact from tariffs. Additionally, even with heavier investment behind Salomon and Wilson Softgoods, AS expects FY26 adj. operating margin of 13.1-13.3% (vs 12.8% in FY25), implying yr/yr margin expansion, though toward the low end of its longer-term framework.
• For FY26, AS expects Technical Apparel revenue growth of 18-20%, Outdoor Performance growth of 18-20%, and Ball & Racquet growth of 7-9%.

Briefing.com Analyst Insight

This was a strong close to FY25 for AS. Technical Apparel growth accelerated, while Outdoor Performance and Ball & Racquet also posted strong growth, and gross margin expansion remained healthy. The problem today lies in guidance, specifically EPS, as revenue guidance was quite strong and above expectations, reinforcing the momentum behind Arc'teryx and Salomon. The downside EPS guidance likely reflects more muted yr/yr margin expansion as AS invests more heavily behind its growth opportunities, particularly Salomon and Wilson Softgoods. Importantly, while EPS guidance came in below expectations, it still implies yr/yr EPS growth, and AS also expects operating margin to expand in FY26, supported by favorable mix and continued full-price sell-through, which is an encouraging signal on underlying demand. Ultimately, the downside EPS guide is pressuring shares today, but the results reflect clear strength across AS's brands, and revenue guidance implies that momentum is continuing into 2026. The increased investment is encouraging from a long-term standpoint, but investors will want to see that these spend levels continue to translate into stronger scale, brand momentum, and profitable growth.