Amer Sports (NYSE:AS) reported broad-based first-quarter growth and raised its 2026 outlook, citing continued momentum at Arc'teryx, accelerating demand for Salomon softgoods and ongoing strength in Wilson Tennis 360.
CEO James Zheng said the company’s “excellent momentum continued in Q1” as its portfolio of technical sports and outdoor brands gained share globally. Amer Sports grew first-quarter sales 32% on a reported basis, or 26% excluding currency effects. Adjusted operating margin expanded 160 basis points to 17.4%, and adjusted diluted earnings per share rose to $0.38 from $0.27 a year earlier.
Zheng said all segments, geographies and channels performed well, led by “exceptional Salomon Softgoods growth, a strong Arc'teryx omni-comp, and solid Wilson Tennis 360 growth.” He added that momentum had continued into the second quarter.
Arc'teryx Drives Technical Apparel Growth
Technical Apparel revenue increased 33% to $885 million, led by Arc'teryx. The segment’s direct-to-consumer revenue rose 41%, including a 19% omni-channel comparable sales increase, while wholesale revenue grew 16%.
Zheng said Arc'teryx delivered strength across regions, channels and categories, with women’s products again outperforming. He said the company is seeing higher female consumer engagement as Arc'teryx improves fit, style and function while expanding assortments. The company highlighted success in women’s bottoms, including the Clarkia, Leutia and Nia pants.
Stuart Haselden, CEO of Arc'teryx, said during the Q&A that the brand’s women’s business was up more than 40% in the first quarter and increased its share of total revenue by 200 basis points to nearly 25%. He said Arc'teryx believes women’s products can exceed 30% of total revenue by 2030.
Arc'teryx also saw footwear growth, led by existing styles including the Norvan LD 4 trail shoe and Kopec hiking shoe, along with the launch of the Sylan 2 trail racing shoe. Zheng also said the Veilance sub-brand posted strong double-digit growth.
Amer Sports plans to open 30 to 35 net new Arc'teryx stores in 2026. CFO Andrew Page said the company expects 10 to 12 net new Arc'teryx openings in Greater China, weighted toward the second half and fourth quarter.
Salomon Softgoods Momentum Accelerates
Outdoor Performance revenue rose 42% to $714 million, driven by Salomon footwear, apparel, bags and socks. Direct-to-consumer sales in the segment grew 57%, while wholesale increased 34% on strong sell-through and reorders in softgoods.
Zheng said Salomon’s outdoor sneaker offering is seeing a demand inflection globally, though the brand still holds only a small share of the global sneaker market. He cited strength in Sportstyle franchises such as XT-6 and XT Whisper, as well as performance running products including the Gravel franchise, S/LAB Phantasm 3 and Aero Glide 4.
Guillaume Meyzenq, CEO of Salomon, said Sportstyle is currently driving momentum, but the company is investing heavily in running and Gravel running. He said Salomon is in more than one-third of U.S. specialty running distribution and is expanding “door by door” with training, events and sales-through support.
In North America, Amer Sports said Salomon is expanding shelf space with existing wholesale partners such as Nordstrom and REI, while beginning to enter select doors with Foot Locker and JD Sports. Meyzenq said the company is focused on consumer demand and brand awareness before pursuing broad door expansion.
In Greater China, Amer Sports opened nine net new Salomon shops in the quarter, bringing the total to 302 doors. The company now expects to open 45 net new Salomon stores in Greater China in 2026, up from the prior plan of 35. Page said the company is focused on larger, more productive locations with room for apparel and accessories.
Wilson Tennis 360 Supports Ball & Racquet Growth
Ball & Racquet Sports revenue increased 13% to $347 million, driven by softgoods and racket sports. Amer Sports said Wilson Tennis 360 continued to resonate with consumers across performance rackets, tennis apparel and footwear.
Zheng highlighted the launch of the Blade V10 racket, which he said has been well received across channels and has already generated reorders from key customers. He also noted that world No. 1 Aryna Sabalenka played with a version of the new Blade before its public launch.
Page said Wilson softgoods posted very strong double-digit growth across all regions. The company opened one net new Wilson brand store in Korea during the quarter and now plans to open approximately 40 net new Wilson Tennis 360 shops in China this year. Amer Sports also plans to expand Wilson’s presence in Dick’s Sporting Goods from 250 doors to 400 doors by the end of 2026.
Despite sales growth, Ball & Racquet adjusted operating margin fell 370 basis points to 3.6%. Page said positive product, channel and region mix was more than offset by higher SG&A investments to support Wilson softgoods growth, including signing new Tennis 360 athletes, as well as higher tariff and freight costs.
Margins Improve as Guidance Moves Higher
At the group level, adjusted gross margin expanded 200 basis points to 60%, driven by favorable channel, geographic, product and brand mix. Adjusted SG&A expenses increased 60 basis points as a percentage of revenue to 43.2%, though Page said the rate was better than implied in prior guidance due to stronger sales leverage.
Amer Sports ended the quarter with $539 million of net cash. Inventories rose 33% year over year, slightly above sales growth. Page said the company is comfortable with the level and quality of inventory and expects inventory growth to normalize in the second half of 2026.
The company raised its full-year 2026 guidance:
- Revenue growth is now expected at 20% to 22%, up from 16% to 18%.
- Technical Apparel revenue growth is now expected at 22% to 24%.
- Outdoor Performance revenue growth is now expected at 22% to 24%.
- Ball & Racquet revenue growth is now expected at 10% to 12%.
- Adjusted gross margin is expected at 59% to 59.5%.
- Adjusted operating margin is expected at 13.4% to 13.7%.
- Adjusted diluted EPS is now expected at $1.18 to $1.23, up from $1.10 to $1.15.
For the second quarter, Amer Sports expects reported revenue growth of 22% to 24%, adjusted gross margin of about 59.5%, adjusted operating margin of 6% to 7% and adjusted diluted EPS of $0.08 to $0.10.
Page said the updated guidance assumes higher tariff rates that were in place before the February Supreme Court ruling remain in place for the rest of 2026. He said the company has filed for tariff refunds and received a small portion of its submission, but that amount did not affect the guidance.
Management Says Demand Remains Resilient
Analysts asked management about macroeconomic and geopolitical risks, including regional demand trends and freight costs. Page said Amer Sports is aware of consumer and geopolitical risks but is not yet seeing signs of pressure from its consumer. He said the premium sports and outdoor market “remains one of the healthiest segments in all of consumer.”
Zheng said China remains on track and that Amer Sports saw good momentum around the May Labor Day holiday period. Haselden said Arc'teryx’s first-quarter traffic and conversion trends have continued into the second quarter.
Page also said the Middle East conflict has had a relatively low impact so far, with the affected region representing less than 1% of global sales. He said Amer Sports recently renegotiated annual shipping contracts and has incorporated those terms into guidance, though the company continues to monitor oil prices and potential logistical costs.
About Amer Sports (NYSE:AS)
Amer Sports (NYSE:AS) is a Helsinki-based sporting goods group that designs, develops and markets performance-oriented equipment, apparel and footwear across multiple sports. The company focuses on product innovation, brand-driven marketing and global distribution to serve athletes and outdoor enthusiasts, offering goods for activities such as skiing, running, hiking, tennis, golf and diving.
Amer Sports' portfolio comprises well-known sports and outdoor brands, including Salomon (outdoor footwear and winter sports), Atomic (alpine skis and ski equipment), Arc'teryx (technical outerwear and climbing gear), Wilson (racquet and ball sports equipment) and Suunto (precision instruments and sports watches).
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