Finland's Amer Sports' revenue climbs 23% to $1,473 mn in Q1 FY25
Finnish company Amer Sports has posted record revenue of $1,473 million in the first quarter (Q1) of fiscal 2025 (FY25), a jump of 23 per cent. In Q1, technical apparel revenue increased 28 per cent to $664 million, or increased 32 per cent on a constant currency basis. This reflects an omni-comp growth of 19 per cent. Revenue from outdoor performance increased 25 per cent to $502 million, or increased 29 per cent on a constant currency basis.
"We began 2025 with a great performance in the first quarter, and that momentum has continued into the second quarter. Led by Arc'teryx and Salomon footwear, our unique portfolio of premium technical brands continues to create white space and take market share in sports and outdoor markets around the world,' CEO James Zheng said.
Amer Sports reported record Q1 FY25 revenue of $1.47 billion, up 23 per cent, driven by strong growth in technical apparel and outdoor performance. Gross margin rose to 57.8 per cent, and operating profit nearly doubled. Despite tariff uncertainties, the company raised its full-year outlook, citing strong brand momentum, pricing power, and mitigation strategies.
'Given macro uncertainty related to US import tariff rates, we are operating our business with discipline and flexibility. We are confident in our position to manage through a variety of tariff outcomes given our premium brands with pricing power, strong secular growth trends, and relatively low US revenue exposure,' Zheng explained.
In Q1 FY25, gross margin increased 350 basis points to 57.8 per cent; adjusted gross margin increased 330 basis points to 58 per cent. Selling, general and administrative expenses increased 18 per cent to $642 million; Adjusted selling, general and administrative expenses increased 19 per cent to $627 million. Operating profit increased 97 per cent to $214 million; adjusted operating profit increased 79 per cent to $232 million.
"Our underlying business momentum, diverse global footprint, clean balance sheet, and strong pricing power positions us well to navigate rising tariffs and associated macro uncertainties. Given the upside in the first quarter and our continued operating and financial momentum — and despite higher tariffs — we are raising our full year revenue and EPS expectations. This updated guidance assumes that the current 30 per cent tariff on goods arriving to the US from China and 10 per cent tariff on all other countries will stay in place for the remainder of 2025. Given the mitigation strategies we already have underway, we expect the impact to our P&L from higher tariffs to be negligible this year. And as we've said before, should strong trends continue and better-than-anticipated demand materialise, we believe we are well positioned to deliver financial performance ahead of these expectations,' CFO Andrew Page said.
'Looking beyond 2025, we believe we will be able to offset the vast majority of higher import tariffs under a wide range of scenarios through pricing, vendor renegotiation, and supply chain manoeuvres," Page added.
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