Amer Sports, Inc. (NYSE:AS) delivered a stronger-than-expected third quarter, powered by standout performance in its outdoor brands and tight cost control.
Yet the upbeat results are tempered by recent brand headwinds in China and a cautious outlook that could determine the stock's next move.
The company reported third-quarter adjusted earnings per share of 33 cents, beating the analyst consensus estimate of 25 cents.
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Analyst’s Take
Amer Sports raised its 2025 GAAP earnings guidance to 88 cents to 92 cents per share, up from 77 cents to 82 cents. The outlook now sits above the 78-cent analyst estimate.
Goldman Sachs analyst Brooke Roach reiterated a Buy rating on Amer Sports, with a price forecast of $48.
Roach said Amer Sports delivered a healthy third quarter against what she viewed as tempered expectations. She noted revenue topped forecasts, led by Outdoor Performance, particularly Salomon, and solid momentum in wholesale channels.
Roach highlighted accelerating comparable sales at the core Arc’teryx brand, with comps rising about 27%.
She said gross margins were especially strong while SG&A remained disciplined, producing a sizable adjusted EBIT margin beat.
Because Amer Sports pre-announced results Sept. 18 alongside Investor Day, investors focused mainly on forward guidance, Roach added.
She highted the fact that the company raised full-year 2025 revenue growth and EPS guidance and outlined initial 2026 revenue expectations. Those 2026 targets sit at the high end of Amer Sports' long-term growth algorithm, according to Roach.
However, she cautioned that the third quarter beat looks somewhat backward facing given late-quarter brand perception disruptions in China. Roach said strength was concentrated in Salomon, the Americas region and wholesale, which powered most outperformance.
She noted that sales and EPS guidance implied for the fourth quarter run modestly below current consensus.
Because of that, Roach expects commentary on the conference call to be crucial for the stock's direction. She anticipates investors will scrutinize Arc’teryx trends into the key winter season, especially performance in the China region.
Price Action: AS shares are trading higher by 7.93% to $33.19 at last check Tuesday.
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