Latest news with #JamesZheng
Fibre2Fashion
23-05-2025
- Business
- Fibre2Fashion
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. Fibre2Fashion News Desk (RR)
Yahoo
20-05-2025
- Business
- Yahoo
Amer Sports' Hot Streak: Runway Growth for Salomon's XT-Whisper, Aero Glide 3 + Arc'teryx's Shoe Pipeline
Amer Sports Inc. sees growing momentum behind Salomon sneakers as footwear also continues to be Arc'teryx's fastest-growing category. Those were the conclusions of Amer CEO James Zheng during the Finnish firm's conference call on Tuesday after posting first-quarter results. More from WWD Amer Sports Raises 2025 Guidance, Tariffs Not Major Concern Puma Previews H-Street Low-Profile Sneaker in Seoul Ahead of June Release New Balance Brings More Cushioning to Its FuelCell Rebel v5 Daily Trainer 'Global brand momentum behind Salomon sneakers is accelerating. Not only is the Salomon footwear franchise continuing to grow very well in China and APAC (Asia Pacific), it's now also starting to impact in both the U.S. and Europe,' Zheng said. The CEO added that sales of Salomon sneakers exceeded $1 billion in 2024, but remains 'tiny' relative to the $180 billion global sneaker market. 'We believe Salomon sneakers have an authentic and unique market position with technical features designed for athletes on a variety of terrains, but also great for everyday use,' he said. 'Our unique style and the technical attributes are relevant with consumers at a time when they are more receptive than ever to wearing new sneaker brands.' Direct-to-consumer remains the fastest growing channel for the brand. In addition to shoes, Salomon apparel, bags and socks are also experiencing growth, the CEO said. The first quarter included its global footwear launch of XT-Whisper, which Zheng said has been a 'massive success.' In addition, the brand also introduced its Aero Glide 3, a low running shoe using a foam called optiFOAM EVO that the CEO said represents a 'disruptive new generation' material that offers runners a new level of rebound and comfort for running on road or trail. This month also saw the introduction of GRVL, a collection of running shoes for use on gravel from pavement to parks and trails. Zheng said it opened 22 net new Salomon shops in Greater China in the quarter, bringing the total store count of company-owned stores and partner doors to 218. The company plans to have 300 shops this year, and has the 'opportunity to grow to several hundred locations over time in just Tier 1 and Tier 2 cities,' he said. The new Shanghai store will be joined by a second Shanghai flagship in August. And in the U.S., the pop-up location in the SoHo neighborhood in N.Y.C. last October became a permanent store site, with plans to open 3 to 4 more shops in the New York area this year. 'Beyond New York, we're also focused on San Francisco and Los Angeles as epicenter markets for Salomon sneakers,' he said. Zheng described Arc'teryx as a 'breakout growth story with great growth and profitability for the outdoor industry' that's still 'very under-penetrated globally.' The brand's footwear and women's businesses were cited as categories that grew faster than the brand overall in the first quarter. He said consumers continued to respond to the brand's technical performance footwear designed for mountains. Northern LD4, designed for long-distance mountain running, was introduced in the quarter, as well as Vertex Speed, the mountain running shoe designed to climb through technical vertical terrain. He said footwear will become a 'sizable and profitable growth avenue for Arc'teryx' as it looks to its pipeline of shoe launches in the back half of 2025. 'We now have structured footwear as a separate business unit,' the CEO said, emphasizing that the brand now has a dedicated team focused on the category. Stuart C. Haselden, CEO of Arc'teryx, said the brand has improved its in-stock positions across a number of categories, including footwear. He said footwear was up 41 percent on top of the launch of three new models in the first quarter, adding that Northern LD4 was up 163 percent to plan. He said the women's apparel business was up 38 percent behind footwear, and that the ultimate goal is a balanced business that's '50-50 between men's and women's.' For the quarter ended March 31, net income was $134.6 million, on revenue of $1.47 billion. That compares with net income of $5.1 million, on revenue of $1.19 billion in the same year-ago period. For the full year ending Dec. 31, revenue is expected to grow 15 percent to 17 percent, with diluted EPS guided to between 67 cents to 72 cents versus the prior forecast at 64 cents to 69 cents. The Finnish company also owns the racquet brand Wilson, and the Peak Performance and Atomic brands. It completed its initial public offering last year, raising $1.37 billion. Best of WWD Mikey Madison's Elegant Red Carpet Shoe Style [PHOTOS] Julia Fox's Sleekest and Boldest Shoe Looks Over the Years [Photos] Crocs Collaborations From Celebrities & Big Brands You Should Know Sign in to access your portfolio
Yahoo
20-05-2025
- Business
- Yahoo
JPMorgan Maintains Overweight Rating on Amer Sports (AS), Lifts PT
On Tuesday, Amer Sports Inc. (NYSE:AS) announced record financial results for Q1 2025, which led the company to raise its full-year 2025 guidance. Amer Sports now projects revenue growth of 15% to 17%, with EPS between $0.67 and $0.72. Following these results, JPMorgan analyst Matthew Boss raised the price target on Amer Sports to $45 from $40 while keeping an Overweight rating on the shares. A group of professional athletes wearing the company's performance apparel in a sports event. Amer's revenue in Q1 surged 23% year-over-year to make $1.473 billion. Matthew Boss's sentiment was driven by a 'high-quality beat and raise' Q1, across all three of its segments. Technical Apparel saw a 28% increase, Outdoor Performance rose 25%, and Ball & Racquet Sports grew 12%. CEO James Zheng highlighted the company's strong momentum as well, which is led by brands like Arc'teryx and Salomon footwear, which are expanding market share globally. JPMorgan also says that Amer's revenue upside was driven by broad-based portfolio momentum. CFO Andrew Page added that Amer's pricing power and other mitigation strategies position it well to manage potential impacts from rising tariffs. The updated full-year 2025 guidance assumes US tariffs on imports from China remain at 30% and from the rest of the world at 10%. Amer Sports Inc. (NYSE:AS) designs, manufactures, distributes, and sells sports equipment, apparel, footwear, and accessories globally. While we acknowledge the potential of AS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AS and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
Amer Sports Reports Record First Quarter 2025 Financial Results, Raises Full Year Revenue and EPS Guidance
Strong results with revenues, adjusted margins and EPS well above expectations Revenue increased 23% to $1,473 million in 1Q25, and strong momentum has continued into 2Q25 Arc'teryx strong trends continue across regions, channels, and categories Salomon footwear brand momentum accelerating globally, and Winter Sports Equipment had a solid finish to Winter season Ball & Racquet segment delivered healthy sales and profitability led by Wilson Tennis 360 Company raises 2025 revenue and EPS expectations assuming current tariffs remain in effect for rest of year NEW YORK, May 20, 2025--(BUSINESS WIRE)--Amer Sports, Inc. (NYSE: AS) ("Amer Sports" or the "Company") today announced its financial results for the first quarter of 2025. CEO James Zheng commented, "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. Given macro uncertainty related to U.S. 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 U.S. revenue exposure." FIRST QUARTER 2025 RESULTS For the first quarter of 2025, compared to the first quarter of 2024: Revenue increased 23% to $1,473 million, or 26% on a constant currency basis1. Revenues by segment: Technical Apparel increased 28% to $664 million, or increased 32% on a constant currency basis. This reflects an omni-comp2 growth of 19%. Outdoor Performance increased 25% to $502 million, or increased 29% on a constant currency basis. Ball & Racquet Sports increased 12% to $306 million, or increased 13% on a constant currency basis. Gross margin increased 350 basis points to 57.8%; Adjusted gross margin increased 330 basis points to 58.0%. Selling, general and administrative expenses increased 18% to $642 million; Adjusted selling, general and administrative expenses increased 19% to $627 million. Operating profit increased 97% to $214 million; Adjusted operating profit increased 79% to $232 million. Operating margin increased 540 basis points to 14.5%. Adjusted operating margin increased 490 basis points to 15.8%. Adjusted operating margin by segment: Technical Apparel increased 110 basis points to 23.8%. Outdoor Performance increased 990 basis points to 14.7%. Ball & Racquet Sports increased 270 basis points to 6.6%. Net income increased from $5 million to $135 million, or $0.24 diluted earnings per share; Adjusted net income increased from $50 million to $148 million, or $0.27 diluted earnings per share. Balance sheet. Year-over-year inventories increased 15% to $1,267 million. Net debt3 was $515 million, and cash and cash equivalents totaled $422 million at quarter end. 1 Constant currency revenue is calculated by translating the current period reported amounts using the actual exchange rates in use during the comparative prior period, in place of the exchange rates in use during the current period. 2 Omni-comp reflects year-over-year revenue growth from owned retail stores and e-commerce sites that have been open at least 13 months. 3 Net debt is defined as the principal value of borrowings from financial institutions, including the revolving credit facility and other-borrowings, less cash and cash equivalents. OUTLOOK CFO Andrew Page said, "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% tariff on goods arriving to the U.S. from China and 10% 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 materialize, we believe we are well positioned to deliver financial performance ahead of these expectations. 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 maneuvers." FULL-YEAR 2025 Amer Sports is updating guidance for the year ending December 31, 2025 (all guidance figures reference adjusted amounts). Guidance assumes U.S. tariffs on imports from China remain at 30% and Rest-of-World at 10% for the remainder of the year: Reported revenue growth: 15 – 17% Gross margin: 56.5 – 57% Operating margin: 11.5 – 12% Net finance cost: approximately $120 million Effective tax rate: 30 – 32% Fully diluted share count: approximately 560 million Fully diluted EPS: $0.67 – 0.72 D&A: approximately $350 million, including approximately $180 million of ROU depreciation CapEx: approximately $300 million Technical Apparel: Revenue growth of 20 – 22% Segment operating margin approximately 21% Outdoor Performance: Revenue growth of mid-teens% Segment operating margin approximately 9.5% Ball & Racquet: Revenue growth of mid-single-digit Segment operating margin approximately 3 – 4% SECOND QUARTER 2025 Amer Sports is providing the following guidance for the second quarter ending June 30, 2025 (all guidance figures reference adjusted amounts). Guidance assumes U.S. tariffs on imports from China remain at 30% and Rest-of-World at 10% for the remainder of the year: Reported revenue growth: 16 – 18% Gross margin: 57 – 58% Operating margin: 3 – 4% Net finance cost: $25 – 30 million Effective tax rate: 30 – 32% Fully diluted share count: approximately 560 million Fully diluted EPS: $0.00 – 0.02 Other than with respect to revenue, Amer Sports only provides guidance on a non-IFRS basis. The Company does not provide a reconciliation of forward-looking non-IFRS measures to the most directly comparable IFRS Accounting Standards measures due to the difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations without unreasonable efforts. The Company is unable to address the probable significance of the unavailable reconciling items, which could have a potentially significant impact on its future IFRS financial results. The above outlook reflects the Company's current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change. Actual results may differ materially from these forward-looking statements, including as a result of, among other things, the factors described under "Forward-Looking Statements" below and in our filings with the SEC. CONFERENCE CALL INFORMATION The Company's conference call to review the results for the first quarter 2025 will be webcast live today, Tuesday, May 20, 2025 at 8:00 a.m. Eastern Time and can be accessed at ABOUT AMER SPORTS Amer Sports is a global group of iconic sports and outdoor brands, including Arc'teryx, Salomon, Wilson, Peak Performance, and Atomic. Our brands are known for their detailed craftsmanship, unwavering authenticity, and premium market positioning. As creators of exceptional apparel, footwear, and equipment, we pride ourselves on cutting-edge innovation, performance, and designs that allow elite athletes and everyday consumers to perform their best. With over 13,400 employees globally, Amer Sports' purpose is to elevate the world through sport. Our vision is to be the global leader in premium sports and outdoor brands. With corporate offices in Helsinki, Munich, Kraków, New York, and Shanghai, we have operations in 42 countries and our products are sold in 100+ countries. Amer Sports generated $5.2 billion in revenue in 2024. Amer Sports, Inc. shares are listed on the New York Stock Exchange. For more information, visit NON-IFRS MEASURES Adjusted gross profit margin, adjusted SG&A expenses, adjusted net finance costs, adjusted income tax expense, adjusted operating profit margin, adjusted EBITDA, adjusted net income attributable to equity holders of the Company, and adjusted diluted earnings per share are financial measures that are not defined under IFRS Accounting Standards. Adjusted gross profit margin is calculated as adjusted gross profit divided by revenue. Adjusted gross profit is calculated as gross profit excluding non-recurring items such as depreciation and amortization related to purchase price allocation (PPA) fair value step up resulting from the acquisition and delisting of Amer Sports in 2019, restructuring expenses, and expenses related to certain legal proceedings. Adjusted SG&A excludes non-recurring items such as depreciation and amortization on PPA fair value step up, restructuring expenses, expenses related to transaction activities, expenses related to certain legal proceedings, and certain share-based payments. Adjusted net finance costs is calculated as net finance costs excluding non-recurring items such as expenses related to transaction activities, other adjustments and loss on debt extinguishment. Adjusted income tax expense is calculated as income tax expense excluding the income tax expense resulting from each adjustment excluded from Adjusted net income. Adjusted operating profit margin is calculated as adjusted operating profit divided by revenue. Adjusted operating profit is calculated as income before tax with adjustments to exclude non-recurring items such as depreciation and amortization on PPA fair value step up, restructuring expenses, impairment losses on goodwill and intangible assets, expenses related to transaction activities, expenses related to certain legal proceedings, expenses related to certain share-based payments, interest expense, foreign currency exchange gains/(losses), net & other finance costs, loss on debt extinguishment, and interest income. EBITDA is calculated as net income attributable to equity holders of the Company, plus net income attributable to non-controlling interests, income tax expense, foreign currency exchange gains/(losses), net & other finance costs, interest expense, loss on debt extinguishment, and depreciation and amortization, less interest income. Adjusted EBITDA is calculated as EBITDA with adjustments to exclude non-recurring items such as restructuring expenses, impairment losses on goodwill and intangible assets, expenses related to transaction activities, expenses related to certain legal proceedings and certain share-based payments. Adjusted net income attributable to equity holders of the Company is calculated as net income attributable to equity holders of the Company with adjustments to exclude non-recurring items such as depreciation and amortization on PPA fair value step up, restructuring expenses, impairment losses on goodwill and intangible assets, expenses related to transaction activities, expenses related to certain legal proceedings, certain share-based payments, loss on debt extinguishment, other adjustments, and related income tax expense. "Omni-comp" reflects revenue growth on a constant currency basis from retail stores that have been open for at least 13 full fiscal months and from owned e-commerce websites. Remodeled stores are excluded from the comparable sales growth calculation for 13 months if a store: (i) changes its square footage by more than 20% or (ii) is closed for more than 60 days for the refit. Stores closed for 60 days or less are excluded from the comparable sales growth calculation only for the months they are closed. The Company believes that these non-IFRS measures, when taken together with its financial results presented in accordance with IFRS Accounting Standards, provide meaningful supplemental information regarding its operating performance and facilitate internal comparisons of its historical operating performance on a more consistent basis by excluding certain items that may not be indicative of our business, results of operations or outlook. In particular, adjusted EBITDA and adjusted net income are helpful to investors as they are measures used by management in assessing the health of the business and evaluating operating performance, as well as for internal planning and forecasting purposes. Non-IFRS financial measures, however are subject to inherent limitations, may not be comparable to similarly titled measures used by other companies and should not be considered in isolation or as an alternative to IFRS measures. The supplemental tables below provide reconciliations of each non-IFRS financial measure presented to its most directly comparable IFRS Accounting Standards financial measure. FORWARD LOOKING STATEMENTS This press release contains statements that constitute forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Many of the forward-looking statements contained herein can be identified by the use of forward-looking words such as "anticipate," "believe," "may," "will," "expect," "could," "target," "predict," "potential," "should," "plan," "intend," "estimate" and "potential," and similar expressions. Forward-looking statements appear in a number of places herein and include, but are not limited to, statements regarding our intent, belief or current expectations. Forward-looking statements are based on our management's beliefs and assumptions and on information currently available to our management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including, but not limited to, those identified under the section titled "Item 3. Key Information—D. Risk Factors" in our Annual Report on Form 20-F. These risks and uncertainties include factors relating to: the strength of our brands; changes in market trends and consumer preferences; intense competition that our products, services and experiences face; harm to our reputation that could adversely impact our ability to attract and retain consumers and wholesale partners, employees, brand ambassadors, partners, and other stakeholders; reliance on technical innovation and high-quality products; general economic and business conditions worldwide, including due to inflationary pressures; the strength of our relationships with and the financial condition of our third-party suppliers, manufacturers, wholesale partners and consumers; ability to expand our DTC channel, including the expansion and success of our retail stores and e-commerce platforms; our plans to innovate, expand our product offerings and successfully implement our growth strategies that may not be successful, and implementation of these plans that may divert our operational, managerial and administrative resources; our international operations, including any related to political uncertainty and geopolitical tensions; changes in trade policies, including tariffs and other trade restrictions; our and our wholesale partners' ability to accurately forecast demand for our products and our ability to manage manufacturing decisions; our third party suppliers, manufacturers and other partners, including their financial stability and our ability to find suitable partners to implement our growth strategy; the cost of raw materials and our reliance on third-party manufacturers; our distribution system and ability to deliver our brands' products to our wholesale partners and consumers; climate change and sustainability-related matters, or legal, regulatory or market responses thereto; current and further changes to trade policies, tariffs, import/export regulations and, anti-competition regulations in the United States, EU, PRC and other jurisdictions, or our failure to comply with such regulations, may have a material adverse effect on our reputation, business, financial condition and results of operations; the use and reliance on artificial intelligence can potentially cause intellectual property rights issues, security vulnerabilities, harm our business reputation, negatively impact our operations and impact our financial results; ability to obtain approvals from PRC authorities to remain listed on the U.S. exchanges and offer securities in the future; ability to obtain, maintain, protect and enforce our intellectual property rights in our brands, designs, technologies and proprietary information and processes; ability to defend against claims of intellectual property infringement, misappropriation, dilution or other violations made by third parties against us; security breaches or other disruptions to our information technology ("IT") systems; our reliance on a large number of complex IT systems; changes in government regulation and tax matters; our ability to remediate our material weakness in our internal control over financial reporting; our relationship with ANTA Sports Products Limited ("ANTA Sports"); our expectations regarding the time during which we will be a foreign private issuer; and other risk factors discussed under "Item 3. Key Information—D. Risk Factors" in our Annual Report on Form 20-F. Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update them in light of new information or future developments or to release publicly any revisions to these statements in order to reflect later events or circumstances or to reflect the occurrence of an unanticipated event. Source: Amer Sports, Inc. CONSOLIDATED STATEMENTS OF INCOME (1) (2)For the Three Months Ended March 31, 2025 and 2024(Unaudited) For the Three Months Ended In millions (except for earnings per share information) 2025 2024 Revenue $ 1,472.5 $ 1,192.5 Cost of goods sold (621.4 ) (544.4 ) Gross profit 851.1 648.1 Selling, general and administrative expenses (641.9 ) (543.8 ) Impairment losses (0.3 ) (1.3 ) Other operating income 5.3 6.0 Operating profit 214.2 109.0 Interest expense (22.0 ) (68.3 ) Foreign currency exchange gains/(losses), net & other finance costs 3.9 (14.0 ) Loss on debt extinguishment - (14.3 ) Interest income 1.5 2.7 Net finance cost (16.6 ) (93.9 ) Income before tax 197.6 15.1 Income tax expense (59.5 ) (8.2 ) Net income $ 138.1 $ 6.9 Net income attributable to: Equity holders of the Company $ 134.6 $ 5.1 Non-controlling interests $ 3.5 $ 1.8 Earnings per share Basic earnings per share $ 0.24 $ 0.01 Diluted earnings per share $ 0.24 $ 0.01 Weighted-average number of ordinary shares Basic 553,986,158 463,422,683 Diluted 557,567,556 466,345,776 (1) In the third quarter of 2024, the Company changed its presentation of credit card processing fees, which were previously recorded as contra-revenue and have been reclassified as selling, general and administrative expenses. Prior period amounts have been reclassified to conform with current period presentation.(2) Beginning in the fourth quarter of 2024, the Company changed its presentation of foreign exchange gains and losses related to operational transactions, which were previously recorded as selling, general and administrative expenses, and are now recorded as finance costs. The impact on the prior period financial statements is immaterial. CONSOLIDATED STATEMENTS OF FINANCIAL POSITIONAs of March 31, 2025 and December 31, 2024(Unaudited) In millions March 312025 December 31,2024 ASSETS NON-CURRENT ASSETS Intangible assets $ 2,638.4 $ 2,590.1 Goodwill 2,161.9 2,127.7 Property, plant and equipment 561.2 549.5 Right-of-use assets 565.4 524.3 Non-current financial assets 16.9 16.8 Defined benefit pension assets 11.3 11.7 Other non-current assets 46.2 49.3 Deferred tax assets 81.7 67.6 TOTAL NON-CURRENT ASSETS 6,083.0 5,937.0 CURRENT ASSETS Inventories 1,267.2 1,223.3 Accounts receivable, net 549.8 607.1 Prepaid expenses and other receivables 193.7 213.2 Current tax assets 11.6 10.3 Cash and cash equivalents 422.1 345.4 TOTAL CURRENT ASSETS 2,444.4 2,399.3 TOTAL ASSETS 8,527.4 8,336.3 SHAREHOLDERS' EQUITY (DEFICIT) AND LIABILITIES EQUITY (DEFICIT) Share capital 18.5 18.4 Share premium 3,199.9 3,189.1 Capital reserve 2,789.2 2,789.2 Cash flow hedge reserve (9.1 ) 19.6 Accumulated deficit and other (780.3 ) (1,017.0 ) Equity attributable to equity holders of the parent company 5,218.2 4,999.3 Non-controlling interests 12.6 9.1 TOTAL EQUITY $ 5,230.8 $ 5,008.4 LIABILITIES NON-CURRENT LIABILITIES Non-current borrowings $ 791.2 $ 790.8 Non-current lease liabilities 484.1 439.0 Defined benefit pension liabilities 30.0 30.0 Other non-current liabilities 14.1 15.5 Non-current provisions 6.3 5.9 Non-current tax liabilities 5.1 4.9 Deferred tax liabilities 497.1 487.4 TOTAL NON-CURRENT LIABILITIES 1,827.9 1,773.5 CURRENT LIABILITIES Other borrowings 137.4 136.5 Current lease liabilities 121.6 116.9 Accounts payable 457.0 549.0 Other current liabilities 654.9 687.9 Current provisions 34.4 33.7 Current tax liabilities 63.4 30.4 TOTAL CURRENT LIABILITIES 1,468.7 1,554.4 TOTAL LIABILITIES 3,296.6 3,327.9 TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES $ 8,527.4 $ 8,336.3 GEOGRAPHIC REVENUES (1)For the Three Months Ended March 31, 2025 and 2024(Unaudited) For the Three Months EndedMarch 31, In millions 2025 2024 % Change Geographic Revenues Americas $ 464.7 $ 414.9 12% Greater China (2) 446.0 311.6 43% EMEA 404.9 360.6 12% Asia Pacific (3) 156.9 105.4 49% Total $ 1,472.5 $ 1,192.5 23% (1) In the third quarter of 2024, the Company changed its presentation of credit card processing fees, which were previously recorded as contra-revenue and have been reclassified as selling, general and administrative expenses. Prior period amounts have been reclassified to conform with current period presentation.(2) Consists of mainland China, Hong Kong, Macau and Taiwan.(3) Excludes Greater China. CHANNEL REVENUES (1)For the Three Months Ended March 31, 2025 and 2024(Unaudited) For the Three Months EndedMarch 31, In millions 2025 2024 % Change Channel Revenues Wholesale $ 779.9 $ 694.7 12% DTC 692.6 497.8 39% Total $ 1,472.5 $ 1,192.5 23% (1) In the third quarter of 2024, the Company changed its presentation of credit card processing fees, which were previously recorded as contra-revenue and have been reclassified as selling, general and administrative expenses. Prior period amounts have been reclassified to conform with current period presentation. SEGMENT REVENUES (1)For the Three Months Ended March 31, 2025 and 2024(Unaudited) For the Three Months EndedMarch 31, In millions 2025 2024 % Change Segment Revenues Technical Apparel $ 663.8 $ 517.1 28% Outdoor Performance 502.4 401.8 25% Ball & Racquet Sports 306.3 273.6 12% Total $ 1,472.5 $ 1,192.5 23% (1) In the third quarter of 2024, the Company changed its presentation of credit card processing fees, which were previously recorded as contra-revenue and have been reclassified as selling, general and administrative expenses. Prior period amounts have been reclassified to conform with current period presentation. SEGMENT ADJUSTED OPERATING PROFITFor the Three Months Ended March 31, 2025 and 2024(Unaudited) Three Months Ended March 31, In millions 2025 % ofSegmentRevenues(2) 2024 % ofSegmentRevenues(2) Segment Adjusted Operating Profit Technical Apparel $ 157.8 23.8% $ 117.3 22.7% Outdoor Performance 73.8 14.7% 19.4 4.8% Ball & Racquet Sports 20.2 6.6% 10.8 3.9% Corporate expenses (1) (19.6 ) NM (17.7 ) NM Total $ 232.2 15.8% $ 129.8 10.9% (1) Includes corporate expenses, which have not been allocated to the reportable segments.(2) The operating loss as a percentage of revenues for Corporate expenses is not presented as it is not a meaningful metric (NM). SEGMENT DTC OPERATING DATAAs of March 31, 2025 and 2024(Unaudited) March 31, 2025 2024 % Change Store count (1) Technical Apparel 220 190 16% Outdoor Performance 243 139 75% Ball & Racquet 55 19 189% Total 518 348 49% Omni-comp (2) Technical Apparel 19% 36% Outdoor Performance 28% 32% Ball & Racquet 12% 0% (1) Reflects the number of owned retail stores open at the end of the fiscal period for each segment.(2) Omni-comp reflects year-over-year revenue growth from owned retail stores and e-commerce sites that have been open at least 13 months. ADJUSTED GROSS PROFIT RECONCILIATIONFor the Three Months Ended March 31, 2025 and 2024(Unaudited) For the Three Months Ended March 31, In millions 2025 2024 Gross Profit $ 851.1 $ 648.1 Depreciation and amortization on PPA fair value step up 3.6 3.7 Expenses related to certain legal proceedings (0.8 ) — Adjusted Gross Profit $ 853.9 $ 651.8 ADJUSTED SG&A RECONCILIATION (1)For the Three Months Ended March 31, 2025 and 2024(Unaudited) For the Three Months EndedMarch 31, In millions 2025 2024 Selling, general and administrative expenses $ (641.9 ) $ (543.8 ) Depreciation and amortization on PPA fair value step up 6.9 7.0 Restructuring expenses 2.9 0.9 Expenses related to transaction activities 0.3 5.8 Expenses related to certain legal proceedings 0.0 — Share-based payments 5.0 3.4 Adjusted SG&A expenses $ (626.8 ) $ (526.7 ) (1) In the third quarter of 2024, the Company changed its presentation of credit card processing fees, which were previously recorded as contra-revenue and have been reclassified as selling, general and administrative expenses. Prior period amounts have been reclassified to conform with current period presentation. ADJUSTED NET FINANCE COST RECONCILIATIONFor the Three Months Ended March 31, 2025 and 2024(Unaudited) For the Three Months EndedMarch 31, In millions 2025 2024 Net Finance Costs $ (16.6 ) $ (93.9 ) Expenses related to transaction activities — 18.0 Loss on debt extinguishment — 14.3 Adjusted Net Finance Costs $ (16.6 ) $ (61.6 ) ADJUSTED INCOME TAX EXPENSE RECONCILIATIONFor the Three and Twelve Months Ended December 31, 2024 and 2023(Unaudited) For the Three Months EndedMarch 31, In millions 2025 2024 Income Tax Expense $ (59.5 ) $ (8.2 ) Depreciation and amortization on PPA fair value step up (2.6 ) (2.7 ) Restructuring expenses (0.7 ) (0.2 ) Expenses related to transaction activities (0.1 ) (2.9 ) Expenses related to certain legal proceedings 0.2 — Share-based payments (1.3 ) (0.9 ) Loss on debt extinguishment — (1.4 ) Adjusted Income Tax Expense $ (64.0 ) $ (16.3 ) ADJUSTED NET INCOME RECONCILIATION (1)For the Three Months Ended March 31, 2025 and 2024(Unaudited) For the Three Months EndedMarch 31, In millions (except for share and earnings per share information) 2025 2024 Net income attributable to equity holders of the Company $ 134.6 $ 5.1 Depreciation and amortization on PPA fair value step up 10.5 10.7 Restructuring expenses 2.9 0.9 Expenses related to transaction activities 0.3 23.9 Expenses related to certain legal proceedings (0.7 ) — Share-based payments 5.0 3.4 Loss on debt extinguishment — 14.3 Income tax expense on adjustments (4.5 ) (8.1 ) Adjusted net income attributable to equity holders of the Company $ 148.1 $ 50.2 Weighted-average dilutive shares outstanding 557,567,556 466,345,776 Adjusted total diluted earnings per share $ 0.27 $ 0.11 (1) The presented figures and percentages are subject to rounding adjustments, which may cause discrepancies between the sum of the individual figures and the presented aggregated column and row totals. ADJUSTED OPERATING PROFIT RECONCILIATION (1)For the Three Months Ended March 31, 2025 and 2024(Unaudited) For the Three Months EndedMarch 31, In millions 2025 2024 Income before tax $ 197.6 $ 15.1 Depreciation and amortization on PPA fair value step up 10.5 10.7 Restructuring expenses 2.9 0.9 Expenses related to transaction activities 0.3 5.8 Expenses related to certain legal proceedings (0.7 ) — Share-based payments 5.0 3.4 Loss on debt extinguishment — 14.3 Interest expense 22.0 68.3 Foreign currency exchange losses, net & other finance costs (3.9 ) 14.0 Interest income (1.5 ) (2.7 ) Adjusted operating profit $ 232.2 $ 129.8 (1) The presented figures and percentages are subject to rounding adjustments, which may cause discrepancies between the sum of the individual figures and the presented aggregated column and row totals. EBITDA, ADJUSTED EBITDA, AND ADJUSTED EBITDA MARGIN RECONCILIATION (1)For the Three Months Ended March 31, 2025 and 2024(Unaudited) For the Three Months EndedMarch 31, In millions 2025 2024 Revenue $ 1,472.5 $ 1,192.5 Net income attributable to equity holders of the Company $ 134.6 $ 5.1 Net income attributable to non-controlling interests 3.5 1.8 Depreciation and amortization (2) 77.7 62.5 Interest expense (3) 22.0 68.3 Loss on debt extinguishment — 14.3 Foreign currency exchange (gains)/losses, net & other finance costs (3.9 ) 14.0 Interest income (1.5 ) (2.7 ) Income tax expense 59.5 8.2 EBITDA 291.9 171.5 Restructuring expenses 2.9 0.9 Expenses related to transaction activities 0.3 5.8 Expenses related to certain legal proceedings (0.7 ) — Share-based payments 5.0 3.4 Adjusted EBITDA $ 299.4 $ 181.6 Net income margin 9.1 % 0.4 % Adjusted EBITDA Margin 20.3 % 15.2 % (1) The presented figures and percentages are subject to rounding adjustments, which may cause discrepancies between the sum of the individual figures and the presented aggregated column and row totals.(2) Depreciation and amortization includes amortization expense for right-of-use assets capitalized under IFRS 16, Leases of $35.9 million and $26.5 million for the three months ended March 31, 2025 and 2024, respectively.(3) Total interest expense on lease liabilities under IFRS 16, Leases was $7.2 million and $4.2 million for the three months ended March 31, 2025 and 2024, respectively. View source version on Contacts Investor Relations:Omar SaadSenior Vice President Group Investor Relations and Capital Media:Päivi AntolaSenior Vice President, Communicationsmedia@
Business Wire
20-05-2025
- Business
- Business Wire
Amer Sports Reports Record First Quarter 2025 Financial Results, Raises Full Year Revenue and EPS Guidance
NEW YORK--(BUSINESS WIRE)--Amer Sports, Inc. (NYSE: AS) ('Amer Sports' or the 'Company') today announced its financial results for the first quarter of 2025. CEO James Zheng commented, "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. Given macro uncertainty related to U.S. 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 U.S. revenue exposure." FIRST QUARTER 2025 RESULTS For the first quarter of 2025, compared to the first quarter of 2024: Revenue increased 23% to $1,473 million, or 26% on a constant currency basis 1. Revenues by segment: Technical Apparel increased 28% to $664 million, or increased 32% on a constant currency basis. This reflects an omni-comp 2 growth of 19%. Outdoor Performance increased 25% to $502 million, or increased 29% on a constant currency basis. Ball & Racquet Sports increased 12% to $306 million, or increased 13% on a constant currency basis. Gross margin increased 350 basis points to 57.8%; Adjusted gross margin increased 330 basis points to 58.0%. Selling, general and administrative expenses increased 18% to $642 million; Adjusted selling, general and administrative expenses increased 19% to $627 million. Operating profit increased 97% to $214 million; Adjusted operating profit increased 79% to $232 million. Operating margin increased 540 basis points to 14.5%. Adjusted operating margin increased 490 basis points to 15.8%. Adjusted operating margin by segment: Technical Apparel increased 110 basis points to 23.8%. Outdoor Performance increased 990 basis points to 14.7%. Ball & Racquet Sports increased 270 basis points to 6.6%. Net income increased from $5 million to $135 million, or $0.24 diluted earnings per share; Adjusted net income increased from $50 million to $148 million, or $0.27 diluted earnings per share. Balance sheet. Year-over-year inventories increased 15% to $1,267 million. Net debt 3 was $515 million, and cash and cash equivalents totaled $422 million at quarter end. 1 Constant currency revenue is calculated by translating the current period reported amounts using the actual exchange rates in use during the comparative prior period, in place of the exchange rates in use during the current period. 2 Omni-comp reflects year-over-year revenue growth from owned retail stores and e-commerce sites that have been open at least 13 months. 3 Net debt is defined as the principal value of borrowings from financial institutions, including the revolving credit facility and other-borrowings, less cash and cash equivalents. Expand OUTLOOK CFO Andrew Page said, "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% tariff on goods arriving to the U.S. from China and 10% 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 materialize, we believe we are well positioned to deliver financial performance ahead of these expectations. 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 maneuvers." FULL-YEAR 2025 Amer Sports is updating guidance for the year ending December 31, 2025 (all guidance figures reference adjusted amounts). Guidance assumes U.S. tariffs on imports from China remain at 30% and Rest-of-World at 10% for the remainder of the year: SECOND QUARTER 2025 Amer Sports is providing the following guidance for the second quarter ending June 30, 2025 (all guidance figures reference adjusted amounts). Guidance assumes U.S. tariffs on imports from China remain at 30% and Rest-of-World at 10% for the remainder of the year: Reported revenue growth: 16 – 18% Gross margin: 57 – 58% Operating margin: 3 – 4% Net finance cost: $25 – 30 million Effective tax rate: 30 – 32% Fully diluted share count: approximately 560 million Fully diluted EPS: $0.00 – 0.02 Other than with respect to revenue, Amer Sports only provides guidance on a non-IFRS basis. The Company does not provide a reconciliation of forward-looking non-IFRS measures to the most directly comparable IFRS Accounting Standards measures due to the difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations without unreasonable efforts. The Company is unable to address the probable significance of the unavailable reconciling items, which could have a potentially significant impact on its future IFRS financial results. The above outlook reflects the Company's current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change. Actual results may differ materially from these forward-looking statements, including as a result of, among other things, the factors described under 'Forward-Looking Statements' below and in our filings with the SEC. CONFERENCE CALL INFORMATION The Company's conference call to review the results for the first quarter 2025 will be webcast live today, Tuesday, May 20, 2025 at 8:00 a.m. Eastern Time and can be accessed at ABOUT AMER SPORTS Amer Sports is a global group of iconic sports and outdoor brands, including Arc'teryx, Salomon, Wilson, Peak Performance, and Atomic. Our brands are known for their detailed craftsmanship, unwavering authenticity, and premium market positioning. As creators of exceptional apparel, footwear, and equipment, we pride ourselves on cutting-edge innovation, performance, and designs that allow elite athletes and everyday consumers to perform their best. With over 13,400 employees globally, Amer Sports' purpose is to elevate the world through sport. Our vision is to be the global leader in premium sports and outdoor brands. With corporate offices in Helsinki, Munich, Kraków, New York, and Shanghai, we have operations in 42 countries and our products are sold in 100+ countries. Amer Sports generated $5.2 billion in revenue in 2024. Amer Sports, Inc. shares are listed on the New York Stock Exchange. For more information, visit NON-IFRS MEASURES Adjusted gross profit margin, adjusted SG&A expenses, adjusted net finance costs, adjusted income tax expense, adjusted operating profit margin, adjusted EBITDA, adjusted net income attributable to equity holders of the Company, and adjusted diluted earnings per share are financial measures that are not defined under IFRS Accounting Standards. Adjusted gross profit margin is calculated as adjusted gross profit divided by revenue. Adjusted gross profit is calculated as gross profit excluding non-recurring items such as depreciation and amortization related to purchase price allocation (PPA) fair value step up resulting from the acquisition and delisting of Amer Sports in 2019, restructuring expenses, and expenses related to certain legal proceedings. Adjusted SG&A excludes non-recurring items such as depreciation and amortization on PPA fair value step up, restructuring expenses, expenses related to transaction activities, expenses related to certain legal proceedings, and certain share-based payments. Adjusted net finance costs is calculated as net finance costs excluding non-recurring items such as expenses related to transaction activities, other adjustments and loss on debt extinguishment. Adjusted income tax expense is calculated as income tax expense excluding the income tax expense resulting from each adjustment excluded from Adjusted net income. Adjusted operating profit margin is calculated as adjusted operating profit divided by revenue. Adjusted operating profit is calculated as income before tax with adjustments to exclude non-recurring items such as depreciation and amortization on PPA fair value step up, restructuring expenses, impairment losses on goodwill and intangible assets, expenses related to transaction activities, expenses related to certain legal proceedings, expenses related to certain share-based payments, interest expense, foreign currency exchange gains/(losses), net & other finance costs, loss on debt extinguishment, and interest income. EBITDA is calculated as net income attributable to equity holders of the Company, plus net income attributable to non-controlling interests, income tax expense, foreign currency exchange gains/(losses), net & other finance costs, interest expense, loss on debt extinguishment, and depreciation and amortization, less interest income. Adjusted EBITDA is calculated as EBITDA with adjustments to exclude non-recurring items such as restructuring expenses, impairment losses on goodwill and intangible assets, expenses related to transaction activities, expenses related to certain legal proceedings and certain share-based payments. Adjusted net income attributable to equity holders of the Company is calculated as net income attributable to equity holders of the Company with adjustments to exclude non-recurring items such as depreciation and amortization on PPA fair value step up, restructuring expenses, impairment losses on goodwill and intangible assets, expenses related to transaction activities, expenses related to certain legal proceedings, certain share-based payments, loss on debt extinguishment, other adjustments, and related income tax expense. 'Omni-comp' reflects revenue growth on a constant currency basis from retail stores that have been open for at least 13 full fiscal months and from owned e-commerce websites. Remodeled stores are excluded from the comparable sales growth calculation for 13 months if a store: (i) changes its square footage by more than 20% or (ii) is closed for more than 60 days for the refit. Stores closed for 60 days or less are excluded from the comparable sales growth calculation only for the months they are closed. The Company believes that these non-IFRS measures, when taken together with its financial results presented in accordance with IFRS Accounting Standards, provide meaningful supplemental information regarding its operating performance and facilitate internal comparisons of its historical operating performance on a more consistent basis by excluding certain items that may not be indicative of our business, results of operations or outlook. In particular, adjusted EBITDA and adjusted net income are helpful to investors as they are measures used by management in assessing the health of the business and evaluating operating performance, as well as for internal planning and forecasting purposes. Non-IFRS financial measures, however are subject to inherent limitations, may not be comparable to similarly titled measures used by other companies and should not be considered in isolation or as an alternative to IFRS measures. The supplemental tables below provide reconciliations of each non-IFRS financial measure presented to its most directly comparable IFRS Accounting Standards financial measure. FORWARD LOOKING STATEMENTS This press release contains statements that constitute forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Many of the forward-looking statements contained herein can be identified by the use of forward-looking words such as 'anticipate,' 'believe,' 'may,' 'will,' 'expect,' 'could,' 'target,' 'predict,' 'potential,' 'should,' 'plan,' 'intend,' 'estimate' and 'potential,' and similar expressions. Forward-looking statements appear in a number of places herein and include, but are not limited to, statements regarding our intent, belief or current expectations. Forward-looking statements are based on our management's beliefs and assumptions and on information currently available to our management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including, but not limited to, those identified under the section titled 'Item 3. Key Information—D. Risk Factors' in our Annual Report on Form 20-F. These risks and uncertainties include factors relating to: the strength of our brands; changes in market trends and consumer preferences; intense competition that our products, services and experiences face; harm to our reputation that could adversely impact our ability to attract and retain consumers and wholesale partners, employees, brand ambassadors, partners, and other stakeholders; reliance on technical innovation and high-quality products; general economic and business conditions worldwide, including due to inflationary pressures; the strength of our relationships with and the financial condition of our third-party suppliers, manufacturers, wholesale partners and consumers; ability to expand our DTC channel, including the expansion and success of our retail stores and e-commerce platforms; our plans to innovate, expand our product offerings and successfully implement our growth strategies that may not be successful, and implementation of these plans that may divert our operational, managerial and administrative resources; our international operations, including any related to political uncertainty and geopolitical tensions; changes in trade policies, including tariffs and other trade restrictions; our and our wholesale partners' ability to accurately forecast demand for our products and our ability to manage manufacturing decisions; our third party suppliers, manufacturers and other partners, including their financial stability and our ability to find suitable partners to implement our growth strategy; the cost of raw materials and our reliance on third-party manufacturers; our distribution system and ability to deliver our brands' products to our wholesale partners and consumers; climate change and sustainability-related matters, or legal, regulatory or market responses thereto; current and further changes to trade policies, tariffs, import/export regulations and, anti-competition regulations in the United States, EU, PRC and other jurisdictions, or our failure to comply with such regulations, may have a material adverse effect on our reputation, business, financial condition and results of operations; the use and reliance on artificial intelligence can potentially cause intellectual property rights issues, security vulnerabilities, harm our business reputation, negatively impact our operations and impact our financial results; ability to obtain approvals from PRC authorities to remain listed on the U.S. exchanges and offer securities in the future; ability to obtain, maintain, protect and enforce our intellectual property rights in our brands, designs, technologies and proprietary information and processes; ability to defend against claims of intellectual property infringement, misappropriation, dilution or other violations made by third parties against us; security breaches or other disruptions to our information technology ('IT') systems; our reliance on a large number of complex IT systems; changes in government regulation and tax matters; our ability to remediate our material weakness in our internal control over financial reporting; our relationship with ANTA Sports Products Limited ('ANTA Sports'); our expectations regarding the time during which we will be a foreign private issuer; and other risk factors discussed under 'Item 3. Key Information—D. Risk Factors' in our Annual Report on Form 20-F. Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update them in light of new information or future developments or to release publicly any revisions to these statements in order to reflect later events or circumstances or to reflect the occurrence of an unanticipated event. Source: Amer Sports, Inc. (1) In the third quarter of 2024, the Company changed its presentation of credit card processing fees, which were previously recorded as contra-revenue and have been reclassified as selling, general and administrative expenses. Prior period amounts have been reclassified to conform with current period presentation. (2) Beginning in the fourth quarter of 2024, the Company changed its presentation of foreign exchange gains and losses related to operational transactions, which were previously recorded as selling, general and administrative expenses, and are now recorded as finance costs. The impact on the prior period financial statements is immaterial. GEOGRAPHIC REVENUES (1) For the Three Months Ended March 31, 2025 and 2024 (Unaudited) For the Three Months Ended March 31, In millions 2025 2024 % Change Geographic Revenues Americas $ 464.7 $ 414.9 12% Greater China (2) 446.0 311.6 43% EMEA 404.9 360.6 12% Asia Pacific (3) 156.9 105.4 49% Total $ 1,472.5 $ 1,192.5 23% Expand (1) In the third quarter of 2024, the Company changed its presentation of credit card processing fees, which were previously recorded as contra-revenue and have been reclassified as selling, general and administrative expenses. Prior period amounts have been reclassified to conform with current period presentation. (2) Consists of mainland China, Hong Kong, Macau and Taiwan. (3) Excludes Greater China. (1) In the third quarter of 2024, the Company changed its presentation of credit card processing fees, which were previously recorded as contra-revenue and have been reclassified as selling, general and administrative expenses. Prior period amounts have been reclassified to conform with current period presentation. (1) In the third quarter of 2024, the Company changed its presentation of credit card processing fees, which were previously recorded as contra-revenue and have been reclassified as selling, general and administrative expenses. Prior period amounts have been reclassified to conform with current period presentation. (1) Includes corporate expenses, which have not been allocated to the reportable segments. (2) The operating loss as a percentage of revenues for Corporate expenses is not presented as it is not a meaningful metric (NM). (1) Reflects the number of owned retail stores open at the end of the fiscal period for each segment. (2) Omni-comp reflects year-over-year revenue growth from owned retail stores and e-commerce sites that have been open at least 13 months. ADJUSTED SG&A RECONCILIATION (1) For the Three Months Ended March 31, 2025 and 2024 (Unaudited) For the Three Months Ended March 31, In millions 2025 2024 Selling, general and administrative expenses $ (641.9 ) $ (543.8 ) Depreciation and amortization on PPA fair value step up 6.9 7.0 Restructuring expenses 2.9 0.9 Expenses related to transaction activities 0.3 5.8 Expenses related to certain legal proceedings 0.0 — Share-based payments 5.0 3.4 Adjusted SG&A expenses $ (626.8 ) $ (526.7 ) Expand (1) In the third quarter of 2024, the Company changed its presentation of credit card processing fees, which were previously recorded as contra-revenue and have been reclassified as selling, general and administrative expenses. Prior period amounts have been reclassified to conform with current period presentation. ADJUSTED INCOME TAX EXPENSE RECONCILIATION For the Three and Twelve Months Ended December 31, 2024 and 2023 (Unaudited) For the Three Months Ended March 31, In millions 2025 2024 Income Tax Expense $ (59.5 ) $ (8.2 ) Depreciation and amortization on PPA fair value step up (2.6 ) (2.7 ) Restructuring expenses (0.7 ) (0.2 ) Expenses related to transaction activities (0.1 ) (2.9 ) Expenses related to certain legal proceedings 0.2 — Share-based payments (1.3 ) (0.9 ) Loss on debt extinguishment — (1.4 ) Adjusted Income Tax Expense $ (64.0 ) $ (16.3 ) Expand ADJUSTED NET INCOME RECONCILIATION (1) For the Three Months Ended March 31, 2025 and 2024 (Unaudited) For the Three Months Ended March 31, In millions (except for share and earnings per share information) 2025 2024 Net income attributable to equity holders of the Company $ 134.6 $ 5.1 Depreciation and amortization on PPA fair value step up 10.5 10.7 Restructuring expenses 2.9 0.9 Expenses related to transaction activities 0.3 23.9 Expenses related to certain legal proceedings (0.7 ) — Share-based payments 5.0 3.4 Loss on debt extinguishment — 14.3 Income tax expense on adjustments (4.5 ) (8.1 ) Adjusted net income attributable to equity holders of the Company $ 148.1 $ 50.2 Weighted-average dilutive shares outstanding 557,567,556 466,345,776 Adjusted total diluted earnings per share $ 0.27 $ 0.11 Expand (1) The presented figures and percentages are subject to rounding adjustments, which may cause discrepancies between the sum of the individual figures and the presented aggregated column and row totals. (1) The presented figures and percentages are subject to rounding adjustments, which may cause discrepancies between the sum of the individual figures and the presented aggregated column and row totals. (1) The presented figures and percentages are subject to rounding adjustments, which may cause discrepancies between the sum of the individual figures and the presented aggregated column and row totals. (2) Depreciation and amortization includes amortization expense for right-of-use assets capitalized under IFRS 16, Leases of $35.9 million and $26.5 million for the three months ended March 31, 2025 and 2024, respectively. (3) Total interest expense on lease liabilities under IFRS 16, Leases was $7.2 million and $4.2 million for the three months ended March 31, 2025 and 2024, respectively.
