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AS
Earnings call · Jun 2026 (Q2 FY26)

Amer Sports Q2 FY26 earnings call AS

Aug 18, 2026 Source

Executive summary

Amer Sports Q2 FY26 — Strong Revenue Growth and Margin Expansion, Guidance Raised

The company delivered robust Q2 FY26 results, driven by strong performance across its key growth engines: Arc'teryx, Salomon Softgoods, and Wilson Tennis 360. All segments and regions contributed to significant revenue growth and margin expansion, leading to an upward revision of full-year guidance. Management emphasized continued strategic investments in brand awareness, product innovation, and DTC expansion to sustain long-term, high-quality growth, despite some increased finance and corporate costs.

Highlights

5

  • Total revenue grew 32% on a reported basis, with all segments, geographies, and channels achieving strong double-digit growth.

  • Adjusted gross margin increased 710 basis points to 65.8% in Q2, including a 390 basis point benefit from a net tariff refund.

  • Adjusted operating margin expanded 730 basis points to 12.8% in Q2, or 340 basis points excluding the tariff refund.

  • Adjusted diluted EPS was $0.22, up from $0.06 last year, benefiting $0.08 from tariff refunds.

  • Generated $339 million of operating cash flow in H1 2026, significantly up from $108 million last year.

Concerns

3

  • Net finance cost in Q2 was $21 million, above the $15 million guidance, primarily due to higher cost of hedging and currency losses.

  • Corporate expenses increased to $68 million in Q2 from $45 million last year, due to higher IT personnel and deferred compensation expense.

  • Ball & Racquet segment experienced SG&A deleverage due to intentional investments in Wilson Tennis 360.

Guidance & targets

CategoryTargetConfidence
Full Year 2026 Revenue Growth
approximately 24%
high materiality
High
Full Year 2026 Technical Apparel Revenue Growth
25% to 26%
medium materiality
High
Full Year 2026 Outdoor Performance Sales Growth
27% to 28%
medium materiality
High
Full Year 2026 Ball & Racquet Sales Growth
approximately 14%
medium materiality
High
Full Year 2026 Adjusted Gross Margin
60.5% to 61%
high materiality
High
Full Year 2026 Adjusted Operating Margin
14.2% to 14.5%
high materiality
High
Full Year 2026 Technical Apparel Adjusted Operating Margin
approximately 22.5%
medium materiality
High
Full Year 2026 Outdoor Performance Adjusted Operating Profit Margin
16% to 16.5%
medium materiality
High
Full Year 2026 Ball & Racquet Adjusted Operating Margin
6.7% to 7.2%
medium materiality
High
Full Year 2026 Net Finance Cost
approximately $85 million
medium materiality
High
Full Year 2026 Effective Tax Rate
28%
medium materiality
High
Full Year 2026 Other Operating Income
approximately $43 million
low materiality
High
Full Year 2026 Corporate Expense
$240 million
medium materiality
High
Full Year 2026 Net Income Attributable to Noncontrolling Interest
approximately $30 million
low materiality
High
Full Year 2026 Adjusted Diluted EPS
$1.27 to $1.30
high materiality
High
Full Year 2026 Depreciation and Amortization
approximately $450 million
low materiality
High
Full Year 2026 CapEx
approximately $400 million
medium materiality
High
Q3 2026 Reported Revenue Growth
18% to 20%
high materiality
High
Q3 2026 Adjusted Gross Margin
approximately 59%
high materiality
High
Q3 2026 Adjusted Operating Profit Margin
13.5% to 14%
high materiality
High
Q3 2026 Net Finance Cost
$15 million to $20 million
medium materiality
High
Q3 2026 Effective Tax Rate
approximately 28%
medium materiality
High
Q3 2026 Adjusted Diluted EPS
$0.31 to $0.33
high materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
Technical Apparel
Led by Arc'teryx, with strong DTC and wholesale growth across all regions. Margin expanded due to gross margin and SG&A leverage.
DTC expansion: 34%Omni-comp: 17%Wholesale revenue growth: 27%Asia Pacific growth: led segmentEMEA growth: acceleratingAmericas growth: acceleratingGreater China growth: strong double digitsAdjusted operating margin benefit from net tariff refunds: 170 bps
$674 million32%—18.8%
Outdoor Performance
Driven by strong Salomon footwear and apparel performance, with significant DTC and wholesale growth globally. Margin expanded due to mix shift benefits and SG&A leverage.
DTC growth: 52%Omni-comp: 28%Wholesale growth: 25%Asia Pacific growth: led segmentGreater China growth: led segmentAmericas growth: acceleratingEMEA growth: strongAdjusted operating margin benefit from net tariff refunds: 270 bps
$569 million37%—14.6%
Ball & Racquet
Strong momentum in Tennis 360, led by Softgoods and Racquets, with growth across all regions. Margin expanded due to favorable pricing, product, channel, and region mix, partially offset by higher SG&A.
Softgoods growth: very strong double digitsRacquet growth: strong across the boardPerformance Racquets growth: >50%Padel: one of top 5 revenue driversGreater China growth: led segmentAPAC growth: led segmentEMEA growth: led segmentAmericas growth: strongAdjusted operating margin benefit from net tariff refunds: 970 bps
$390 million24%—17.2%

AS operating KPIs by quarter

AS operating KPIs stated on its earnings calls, by fiscal quarter
KPI Mar 2026 Q1 FY26This call Jun 2026 Q2 FY26Change vs prior quarter
Stores Salomon, Greater China
302 We opened 9 net new Salomon shops in Greater China this quarter, including both owned stores and partner stores, bringing our total count at quarter end to 302 doors. Source transcript
315 We opened 13 net new Salomon shops in Greater China this quarter, including both owned stores and partner stores, bringing our total count at quarter end to 315 doors with the potential for 400 to 500 doors over time. Source transcript
+4.3%

Operating figures the company states on every call, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

ProductTypeDetails
SenSura and Saudi utility West and Jacketlaunch
Silent [indiscernible]launch
Arrow [indiscernible]launch
Genesislaunch
Blade v10launch
Defyerlaunch

Deals & partnerships

DICK'S Sporting Goods Expansion into premium 'House of Sports' locations for Arc'teryx

Arc'teryx will be entering 15 hand-selected premium House of Sports locations from Fall Winter 2026, showcased in elevated shop-in-shop formats with emphasis on outerwear and footwear. This is a test and learn stage with potential for further expansion.

Nordstrom, Foot Locker, JD Sports Expansion into key wholesale doors for Salomon footwear in the U.S. over the next couple of years

Salomon has expanded into a small number of key wholesale doors with important U.S. sneaker retailers. Nordstrom is the longest partner, JD Sports followed, and Foot Locker started in July. These channels are performing very well, and selective expansion will continue over the next couple of years.

DICK'S Sporting Goods Expansion of Wilson Tennis 360 offering

Expanded Wilson's Tennis 360 offering into more DICK'S Sporting Goods locations, including House of Sports, now in 450 DICK'S stores with a full head-to-toe to-hand offering.

[indiscernible] Global ambassador for Salomon

Global superstar singer and actress [indiscernible] announced as Salomon's new global ambassador, generating significant global media coverage and consumer reach.

National Opera House of Paris Unique partnership with Salomon

Salomon has begun a unique partnership with the National Opera House of Paris.

Risks & headwinds

Increased Net Finance Costs Q2 FY26, FY26

$21 million in Q2, above $15 million guidance; FY26 guidance raised to $85 million from $70 million

Mitigation:Not explicitly stated, but implies continued hedging and FX management.

Higher Corporate Expenses Q2 FY26, FY26

$68 million in Q2, up from $45 million YoY; FY26 guidance raised to $240 million from $220 million

Mitigation:Due to higher IT investment spend and deferred compensation expense, which are strategic investments.

SG&A Deleverage in Ball & Racquet Q2 FY26

Offset leverage in other segments

Mitigation:Due to intentional investments behind Wilson Softgoods, including Tennis Tour Pros.

European Market Not Fast-Growing Current

Not quantified, but described as 'not a fast-growing market today'

Mitigation:Salomon is gaining traction in specific segments like running and modern outdoor sneakers, leveraging unique competitive edge.

What to watch in Q3 FY26

Salomon North America Retail Expansion

October
Current First flagship store opened on Fifth Avenue, new store in Upper West Side performing well.
Target Opening of Beverly Hills location in Los Angeles epicenter.

Why it matters

Expansion of Salomon's physical footprint in key US markets is crucial for brand awareness and sales growth in the largest sneaker market.

Looking ahead, as we expand our Los Angeles epicenter, we are planning a Beverly Hills location for October.

Q&A highlights

Why isn't back-half guidance higher given strong Q2 momentum and margin flow-through?

Management confirmed momentum continues, with Q3 revenue growth guided at 18-20% and full-year at 24%. They stated guidance is 'ambitious yet responsible,' accounting for continued investments in growth engines, higher net finance costs, and increased IT expenses, while still aiming for strong bottom-line expansion.

“We continue to always strive to provide ambitious and yet responsible guidance.”

asked by Matthew Boss · answered by Andrew Page

2 min read 5 chapters

Detailed narrative

Arc'teryx Global Momentum and Women's Category Growth

Arc'teryx continued its strong performance with broad-based strength across regions, channels, and categories, particularly in women's, which grew faster than any other category. The brand's focus on improving fit, style, and expanding assortment for women, including redesigning core models and expanding color palettes, is driving higher traffic and conversion. New franchises like SenSura and Saudi utility styles, along with success in women's bottoms, are unlocking significant female consumer spend.

Salomon's Epicenter Strategy and Global Reach

Salomon is executing a successful epicenter strategy, focusing on key global metro markets like Paris, London, Shanghai, Beijing, Tokyo, and New York to build reach and presence. This involves opening impactful brand stores and partnering with elevated wholesale doors, supported by event partnerships and community activations. The strategy is driving strong sales momentum and rising brand awareness, particularly in Asia (Greater China, Korea, Japan) and accelerating growth in North America.

Wilson Tennis 360 Acceleration and Product Innovation

The Ball & Racquet segment saw significant growth, primarily driven by the Tennis 360 strategy, encompassing both softgoods and racquets. Recent successful product launches, including the iconic Blade v10 and the new Defyer power-spin racquet, have exceeded expectations. Investments in new tour players and expanded distribution, such as the partnership with DICK'S Sporting Goods, are further amplifying brand visibility and sales.

Strategic Investments for Long-Term Growth

Management emphasized continued strategic investments in its three core growth engines—Arc'teryx, Salomon Softgoods, and Wilson Tennis 360—to ensure high-quality, long-duration growth and strong brand equity. These investments include attracting high-quality talent, best-in-class marketing, building premium owned stores, and developing IT digital platforms, reflecting a commitment to capitalize on significant market opportunities.

Inventory Normalization and Strong Cash Flow

The company successfully managed its inventory, which increased 19% year-over-year, well below the 32% sales growth, indicating normalization earlier than planned. This disciplined working capital management, combined with strong profit growth, resulted in $339 million of operating cash flow in the first half of 2026, a substantial increase from $108 million in the prior year.

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