May 21 - Amer Sports ( AS ) topped market expectations

for first-quarter revenue and profit on Tuesday, helped by

higher pricing and robust demand for its popular sporting goods

brands in China and the United States.

The Wilson tennis racket maker also expects full-year

earnings per share at the higher end of its prior forecast range

of 30 cents to 40 cents.

MARKET REACTION

Shares have risen 23% from their IPO price of $13, as of

last close. But they fell about 4% in premarket trading after

the company forecast current-quarter loss marginally bigger than

the estimates.

CONTEXT

Amer Sports ( AS ) benefited from demand for its sporting apparel

brand Salomon, particularly in the direct-to-consumer channel,

as consumers look to purchase fresh styles.

This comes when retailers in the U.S. are trimming

inventories, leading to weak demand in the wholesale channel for

sporting apparel manufacturers such as Nike ( NKE ) and Under

Armour ( UAA ).

Amer Sports ( AS ) also saw strong sales for its pricier Arc'teryx

brand, which makes technical apparel such as climbing gear.

WHY IT IS IMPORTANT

China is the company's largest market, where it has key

suppliers and manufacturing facilities.

But escalating trade tensions between the world's two

biggest economies could hurt its ability to sell goods

manufactured in China to the U.S.

KEY QUOTE

"Our transformation to a brand-direct business model four

years ago continues to fuel profitable growth today, and our

high-performance technical products are resonating with

consumers globally," said CEO James Zheng.

BY THE NUMBERS

The company's first-quarter revenue of $1.18 billion beat

LSEG expectations of $1.13 billion.

Excluding items, profit of 8 cents per share also beat

analysts' estimate of 4 cents.

Revenue in China grew 51%, following 45% growth in the

fourth quarter.

It forecast second-quarter loss per share to be between 4

cents and 8 cents, while analysts expect a loss of 5 cents.