Amer Sports raises 2026 outlook after strong second quarter

Amer Sports Inc. (NYSE: AS ) stock traded higher Tuesday after the company reported second-quarter results that beat analyst estimates and raised its full-year outlook.

Earnings Snapshot Amer Sports reported adjusted earnings of 22 cents per share, beating the 11-cent consensus estimate.

Revenue rose 32% year over year to $1.633 billion, beating the $1.543 billion estimate.

Growth was driven by gains of more than 20% across Arc'teryx, Salomon Softgoods and Wilson Tennis 360.

Adjusted gross margin expanded 710 basis points to 65.8%, helped by a $64.3 million tariff refund.

Adjusted operating margin increased 730 basis points to 12.8%.

Amer Sports ended the quarter with $573 million in net cash.

Inventory increased 19%, well below the 32% increase in revenue.

Operating cash flow totaled $339 million for the first half of 2026.

The company continues to expect about $400 million in full-year capital expenditures, mainly for retail expansion and IT infrastructure.

Segment Performance Technical Apparel revenue increased 32% to $674 million, while Outdoor Performance revenue climbed 37% to $569 million.

Direct-to-consumer sales jumped 40% and accounted for a record 55% of group revenue.

Asia-Pacific led geographic growth with a 60% increase.

Arc'teryx maintained strong momentum, led by women's products.

The brand added eight net stores during the quarter and plans to open 30 to 35 globally in 2026, including 10 to 12 in Greater China.

Technical Apparel's adjusted operating margin expanded 470 basis points to 18.8%.

Salomon continued to see strong footwear and apparel demand.

The brand added 13 stores in Greater China, bringing its total to 315, and opened seven stores across Japan, Korea and Australia.

In the Americas, Salomon is expanding through Nordstrom, Foot Locker and JD Sports, as well as its own retail network.

It plans seven to 10 new stores in 2026.

Outdoor Performance's adjusted operating margin rose 800 basis points to 14.6%.

Wilson Ball and Racket revenue increased 24% to $390 million.

Performance racket sales jumped more than 50%, helped by the Blade V10 launch.

Wilson added 12 stores during the quarter and plans about 40 new Tennis 360 stores in China this year.

Tennis 360 also expanded to 450 Dick's Sporting Goods locations.

Ball and Racket's adjusted operating margin surged 1,300 basis points to 17.2%.

Outlook During the earnings call, Amer Sports said there is "nothing structural" preventing the company from delivering higher sales and profitability if demand strengthens.

Management said it remains bullish on the outlook for the rest of the year and beyond, while maintaining what it described as a responsible approach to guidance.

For the third quarter, Amer Sports expects earnings of 31 cents to 33 cents per share, missing the 39-cent consensus estimate at the midpoint.

The company expects revenue of $2.072 billion to $2.107 billion, beating the $2.065 billion consensus estimate at the midpoint.

Amer Sports raised its full-year 2026 GAAP earnings outlook to $1.27 to $1.30 per share from $1.18 to $1.23.

The new range is above the $1.20 analyst estimate.

The company also raised its revenue outlook to about $8.142 billion from $7.879 billion to $8.011 billion, beating the $8.023 billion estimate.

Amer Sports now expects full-year revenue growth of about 24%, up from its previous forecast of 20% to 22%.

The outlook includes a foreign-exchange benefit of 200 to 250 basis points.

Technical Apparel revenue is expected to grow 25% to 26%, Outdoor Performance 27% to 28% and Ball and Racket about 14%.