Amer Sports, Inc. ( AS ) shares are trading higher after the company reported better-than-expected second-quarter results.

Revenue rose 16% (+18% on a constant currency basis) to $994 million, exceeding the consensus of $948.2 million. Adjusted EPS of $0.05 beat the consensus loss of $0.06.

By segment, Technical Apparel revenue rose 34% to $407 million, reflecting a 26% omni-channel growth. Outdoor Performance revenue rose 11% Y/Y to $304 million, and Ball & Racquet Sports revenue grew 1% Y/Y to $283 million.

Adjusted gross margin increased by 200 basis points Y/Y to 55.8% in the quarter. Adjusted operating profit increased 40% Y/Y to $29 million, with the margin increasing 50 basis points Y/Y to 2.9%. Cash and equivalents totaled $256 million at the end of the quarter.

CEO James Zheng said, “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.”

Outlook: Amer Sports ( AS ) currently expects FY24 adjusted EPS of $0.40-$0.44 (vs. consensus of $0.40) and revenue growth of 15% – 17% (vs. mid-teens % growth expected earlier).

The company projects Technical Apparel revenue growth of above 30% (prior view: above 25%), with a segment operating margin slightly above 20%.

Amer Sports ( AS ) expects a third-quarter adjusted EPS of $0.08 – $0.10 (versus the $0.14 estimate) and revenue growth of 12% – 13%.

CFO Andrew Page stated, “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.”

Price Action: AS shares are trading higher by 12.2% to $13.86 at the last check Tuesday. 

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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