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    Earnings call· Mar 2026(Q1 FY26)

    Amer Sports Q1 FY26 earnings call AS

    May 19, 2026 Source

    Executive summary

    Amer Sports Q1 FY26 — Strong Sales Growth and Margin Expansion Driven by Key Brands

    Amer Sports delivered a strong Q1 FY26, driven by exceptional performance in its premium brands, Arc'teryx and Salomon, across all segments, geographies, and channels. The company raised its full-year sales, margin, and EPS guidance, reflecting confidence in continued momentum and strategic investments in key growth engines, despite some margin pressure in the Ball & Racquet segment due to ongoing investments.

    Highlights

    5

    • Reported sales grew 32% (26% ex-currency) in Q1.

    • Adjusted operating margin expanded 160 basis points to 17.4% in Q1.

    • Adjusted gross margin increased 200 basis points to 60% in Q1.

    • Technical Apparel revenue increased 33%, led by Arc'teryx with 19% Omni-comp.

    • Outdoor Performance revenue increased 42%, driven by Salomon footwear with 29% Omni-comp.

    Concerns

    3

    • Ball & Racquet segment adjusted operating profit margin decreased 370 basis points to 3.6% due to higher SG&A investments.

    • Corporate expenses increased to $52 million in Q1 from $27 million last year.

    • Inventory was up 33% year-over-year, slightly higher than 32% sales growth.

    Guidance & targets

    21
    CategoryTargetConfidence
    Full-year 2026 Revenue Growth
    20% to 22%
    high materiality
    High
    Technical Apparel 2026 Revenue Growth
    22% to 24%
    medium materiality
    High
    Outdoor Performance 2026 Revenue Growth
    22% to 24%
    medium materiality
    High
    Ball & Racquet 2026 Sales Growth
    10% to 12%
    medium materiality
    High
    Full-year Adjusted Gross Margin
    59% to 59.5%
    high materiality
    High
    Technical Apparel Adjusted Operating Margin
    approximately 22%
    medium materiality
    High
    Outdoor Performance Adjusted Operating Margin
    $14.5 million
    medium materiality
    High
    Full-year Net Finance Cost
    approximately $70 million
    low materiality
    High
    Full-year Effective Tax Rate
    28%
    low materiality
    High
    Full-year Other Operating Income
    approximately $30 million
    low materiality
    High
    Full-year Net Income Attributable to Noncontrolling Interest
    approximately $20 million
    low materiality
    High
    Full-year Adjusted Diluted EPS
    $1.18 to $1.23
    high materiality
    High
    Full-year D&A
    $400 million
    low materiality
    High
    Full-year CapEx
    approximately $400 million
    medium materiality
    High
    Q2 2026 Reported Revenue Growth
    22% to 24%
    high materiality
    High
    Q2 2026 Adjusted Gross Margin
    approximately 59.5%
    medium materiality
    High
    Q2 2026 Adjusted Operating Profit Margin
    6% to 7%
    medium materiality
    High
    Q2 2026 Other Operating Income
    approximately $20 million
    low materiality
    High
    Q2 2026 Net Finance Costs
    approximately $15 million
    low materiality
    High
    Q2 2026 Effective Tax Rate
    approximately 28%
    low materiality
    High
    Q2 2026 Adjusted Diluted EPS
    $0.08 to $0.10 per share
    high materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Technical Apparel
    Led by Arc'teryx, with strong D2C expansion and Omni-comp. Adjusted operating margin expanded 250 basis points. Strong performance in women's category and North America acceleration.
    D2C expansion: 41%Omni-comp: 19%Wholesale revenue growth: 16%Arc'teryx women's business growth: over 40%Arc'teryx women's business penetration: almost 25% of total revenueArc'teryx unaided brand awareness in U.S.: 12% (from 8% last fall)Net new Arc'teryx stores planned for 2026: 30-35Net new Arc'teryx stores in Greater China planned for 2026: 10-12
    		$885 million33%—26.4%
    Outdoor Performance
    Driven by very strong performance in Salomon footwear, apparel, bags, and socks. Adjusted operating profit margin expanded 480 basis points. Significant growth in D2C and wholesale, with strong regional acceleration.
    DTC growth: 57%Omni-comp: 29%Wholesale growth: 34%Net new Salomon shops in Greater China planned for 2026: 45 (up from 35)Net new Salomon shops in Greater China opened in Q1: 9Total Salomon doors in Greater China at quarter end: 302Net new Salomon stores in APAC (Japan/Korea) opened in Q1: 5Net new Salomon shops in Americas planned for 2026: 7-10
    		$714 million42%—20.4%
    Ball & Racquet
    Driven by Softgoods and racquet sports, with strong momentum in Tennis 360. Adjusted operating profit margin decreased 370 basis points due to higher SG&A investments.
    Softgoods growth: very strong double digitsRacquets growth: strong (China and EMEA)Golf growth: solidInflatables growth: slightly downBaseball growth: declinedNet new Wilson brand store opened in Q1: 1 (in Korea)Net new Wilson Tennis 360 shops in China planned for full year: approximately 40Wilson Tennis 360 locations in DICK'S Sporting Goods: expanding from 250 to 400 by end of 2026
    		$347 million13%—3.6%

    Operational metrics

    16
    Adjusted Gross Margin
    60%+200 bps YoY
    Q1 FY26

    Primarily driven by favorable channel, geographic, product, and brand mix.

    Adjusted SG&A as Percentage of Revenue
    43.2%+60 bps YoY
    Q1 FY26

    Offset by SG&A leverage in technical apparel and outdoor performance due to ongoing investments in Ball & Racquet and higher corporate expenses.

    Adjusted Operating Margin
    17.4%+160 bps YoY
    Q1 FY26

    Led by strong margin expansion from 15.8% last year.

    Corporate Expenses
    $52 millionup from $27 million last year
    Q1 FY26

    Mostly related to higher IT personnel and deferred compensation expenses.

    D&A
    $103 million
    Q1 FY26

    Includes ROU depreciation.

    Adjusted Net Finance Cost
    $30 million
    Q1 FY26

    Comprised primarily of interest expense and FX losses.

    Adjusted Diluted EPS
    $0.38compared to $0.27 last year
    Q1 FY26

    Reported for the quarter.

    Net Cash
    $539 million
    Q1 FY26 end

    Balance at the end of the quarter.

    DTC as Percentage of Revenue
    approximately 50%
    Q1 FY26

    At the group level, driven by Salomon and Arc'teryx.

    Asia Pacific Revenue Growth
    53%
    Q1 FY26

    Regional growth leader.

    China Revenue Growth
    45%
    Q1 FY26

    Strong growth in China.

    EMEA Revenue Growth
    27%
    Q1 FY26

    Accelerated growth in EMEA.

    Americas Revenue Growth
    18%
    Q1 FY26

    Strong growth in the Americas.

    Arc'teryx Unaided Brand Awareness
    12%up from 8% last fall
    Q1 FY26

    Significant progress in brand awareness in the U.S. led by top of funnel marketing strategies.

    Salomon Shops
    302
    Q1 FY26 end

    Total count at quarter end, including both owned and partner stores.

    Wilson Tennis 360 Locations in DICK'S Sporting Goods
    400expanding from 250 doors
    by end of 2026

    Planned expansion of footprint.

    Industry KPIs

    7
    MetricValueDetails
    Effective tax rate28%%
    Inventory position—
    Revenue by channel—
    Operating margin sg a17.4%%
    Store fleet door investment—
    Tariff cost exposure recovery—
    Franchise product cycle performance—

    Product announcements

    4
    ProductTypeDetails
    Arc'teryx Aerios FL 2launch
    Salomon GRVL franchiselaunch
    Salomon SLAB Phantom 3launch
    Wilson Blade version 10launch

    Deals & partnerships

    1
    Foot Locker and JD SportsExpansion of Salomon footwear wholesale distribution in the U.S.

    Salomon footwear is starting to move into key doors with these new U.S. retailers, initially with a small number of doors, aligning with the epicenter market strategy.

    Risks & headwinds

    4
    Middle East conflict impactLonger term

    Relatively low impact on business (less than 1% of global sales) thus far.

    Mitigation: Renegotiated annual shipping contracts; closely monitoring the situation. Could create logistical and cost headwinds if oil prices remain elevated.

    Challenging market conditions for Winter Sports Equipment

    Market for cross country and touring remains pressured versus COVID highs.

    Mitigation: Core Alpine on-piece market remains healthy despite low snow in certain regions.

    Ball & Racquet segment margin pressure

    Adjusted operating profit margin decreased 370 basis points to 3.6%.

    Mitigation: Due to ongoing investments in Wilson Tennis 360 and higher corporate expenses.

    Inventory growth outpacing sales growthH1 FY26, expected to normalize in H2 FY26

    Inventory up 33% YoY, slightly higher than 32% sales growth.

    Mitigation: Attributed to earlier seasonal receipts, higher in-transit goods from ocean freight, FX translation, and Arc'teryx Korea acquisition. Expected to normalize in H2 2026.

    What to watch in Q2 FY26

    5

    Salomon U.S. Wholesale Expansion

    Next quarter
    CurrentBeginning to expand into Foot Locker and JD Sports with small number of doors.
    TargetContinued expansion and strong sell-through with new U.S. retail partners.

    Why it matters

    This expansion is key to unlocking significant growth in the largest sneaker market globally for Salomon.

    Not only are we improving sell-through and expanding shelf space within existing wholesale partners such as Nordstrom and RAI, we are also now starting to move Salomon footwear into key doors with new U.S. retailers like Foot Locker and JD Sports.

    Q&A highlights

    6

    What drives confidence in strong Q2 revenue guidance given the macro environment? How is Salomon's product roadmap (GRVL, running specialty) and distribution strategy evolving in the U.S.?

    Management expressed high confidence in Q2 guidance due to current strong trends, visibility into May, and differentiated, innovative products. For Salomon, the U.S. wholesale expansion is strategic and demand-driven, starting with epicenters and key partners like Foot Locker and JD Sports, rather than broad numeric development, supported by a continuous product pipeline.

    “We have a continuous pipeline of product making sure that they get the full support from people trending about Salomon organizing events and make sure that we are driving sales through and the -- third signal of '26 looks very strong for us, of course, small scale, but a very high level of confidence in this environment.”

    asked by Michael Binetti · answered by Jie Zheng

    2 min read5 chapters

    Detailed Narrative

    01

    Arc'teryx Omni-Channel Strength and Women's Opportunity

    Arc'teryx delivered another strong quarter with 19% Omni-comp growth, driven by broad-based strength across regions, channels, and categories. The brand is seeing accelerated growth in North America and its women's business grew over 40% in Q1, now representing almost 25% of total revenue. Management believes the women's segment can exceed 30% of total revenue by 2030, fueled by redesigned core models and expanded assortments in categories like pants.

    02

    Salomon Footwear Demand Inflection and Strategic Expansion

    Salomon footwear is experiencing a global demand inflection, particularly in its outdoor sneak offering, connecting with younger and female consumers. The brand is expanding its presence in performance running with the new GRVL franchise and seeing surging demand in Asia (China, Korea, Japan) and North America. Strategic wholesale expansion in the U.S. with new partners like Foot Locker and JD Sports is being carefully sequenced to align with epicenter market strategies.

    03

    Strategic Retail Footprint Expansion

    Amer Sports is actively expanding its retail footprint for key brands. Arc'teryx plans to open 30 to 35 net new stores globally in 2026, with 10 to 12 in Greater China. Salomon expects to open 45 net new shops in Greater China in 2026, focusing on larger, highly productive doors, and 7 to 10 new shops in the Americas this year, strengthening its presence in key epicenter cities.

    04

    Strong Regional Performance and Macro Resilience

    All four regions achieved solid double-digit revenue growth in Q1, led by Asia Pacific (+53%) and China (+45%), followed by EMEA (+27%) and the Americas (+18%). Despite broader macro concerns, management noted no signs of softening with their consumers, benefiting from the premium sports and outdoor market remaining one of the healthiest segments. The Middle East conflict has had a nominal impact on the business thus far.

    05

    Inventory Management and Tariff Assumptions

    Inventory increased 33% year-over-year, slightly outpacing 32% sales growth, attributed to earlier seasonal receipts, increased ocean freight usage, FX translation, and the Arc'teryx Korea acquisition. Management expects inventory growth rates to normalize in the second half of 2026. The updated guidance assumes higher IEEPA tariff rates remain in place for Q2 and the remainder of 2026, with recent small tariff refunds having no impact on guidance.

    AI-generated summary of the company’s earnings call. Not investment advice.