11:32 AM EST, 03/05/2024 (MT Newswires) -- Amer Sports ( AS ) swung to a fourth-quarter loss on Tuesday despite achieving stronger-than-expected sales growth while guiding earnings below market views for the ongoing year.

The maker of outdoor sports brands such as Solomon skis, Wilson balls, and Arc'teryx premium outerwear swung to a per-share loss of $0.11 from a profit of $0.12 year over year. The result missed the average analyst estimate of a $0.03 loss, according to a Capital IQ survey.

Revenue rose to $1.32 billion for the three months ended Dec. 31 from $1.2 billion a year ago and beat the Street's view of $1.3 billion. In its largest segment, technical apparel, revenue soared 26% to $550 million, driven by 42% direct-to-consumer growth. Outdoor performance revenue inclined 2% to $523 million, and ball and racquet revenue dipped 3% to $242 million.

For the full year, Amer Sports' ( AS ) revenue climbed a bigger-than-expected 23% to $4.37 billion, while its adjusted loss per share worsened to $0.35 from an $0.08 loss last year, missing the market view for a shallower $0.31 loss. Amer's shares fell nearly 10% in morning trade.

"2023 was another strong year of sales growth and margin expansion for Amer Sports ( AS ), but we are still in the early stages of our profitable growth journey following our transformation to a brand-direct business model," Chief Executive James Zheng said in a statement.

For 2024, the company projected reported revenue growth in the mid-teens, implying a year-over-year deceleration, and diluted EPS in the $0.30 to $0.40 range. The consensus is for revenue of $5.13 billion and a stronger GAAP EPS of $0.47, Capital IQ data showed.

Amer Sports ( AS ) expects technical apparel to continue leading its business with revenue growth above 20% and sees outdoor performance revenue growing in the high-single-digit range. Ball and racquet revenue is expected to tick up in the low-to-mid-single digits. The company will work on strengthening its balance sheet, deleveraging the business, and balancing investments in key growth drivers, Chief Financial Officer Andrew Page said in a statement.

For the first quarter, Amer Sports ( AS ) anticipates revenue growth of 6% to 8%. It foresees its per-share results coming in at a loss of $0.01 up to a profit of $0.02. It also expects technical apparel revenue growth above 30%, flat outdoor performance revenue, and a double-digit decline in ball and racquet.

Price: 15.55, Change: -1.79, Percent Change: -10.32