Amer Sports, the parent company of premium outdoor brands Arc'teryx and Salomon, raised its full-year 2026 guidance after reporting first-quarter results that topped analyst expectations. The company's shares climbed 4.18% in premarket trading Tuesday to $34.54, reflecting investor optimism about its growth trajectory.
The company reported first-quarter revenue of $1.95 billion, a 32% increase from the same period last year and above the $1.83 billion consensus estimate. On a constant-currency basis, revenue grew 26%. Adjusted earnings per share came in at $0.38, beating the $0.31 analysts had forecast. Adjusted net income attributable to shareholders rose 47% to $218 million.
Growth was led by the company's Technical Apparel segment, anchored by Arc'teryx, which saw revenue climb 33%. The Outdoor Performance segment, which includes Salomon, surged 42%, while the Ball & Racquet Sports division, featuring Wilson, grew 13%. CEO James Zheng noted that all segments, geographies, and channels performed exceptionally well, with particular strength in Salomon softgoods, Arc'teryx comparable sales, and Wilson Tennis 360.
Profitability also improved significantly. Adjusted gross margin expanded by 200 basis points to 60.0%, while adjusted operating margin rose 160 basis points to 17.4%. CFO Andrew Page highlighted that Arc'teryx, Salomon softgoods, and Wilson Tennis 360 remain relatively small franchises with substantial room for expansion, providing confidence to raise the company's full-year outlook.
Amer Sports now expects 2026 reported revenue growth of 20% to 22%, with adjusted gross margin between 59.0% and 59.5% and adjusted operating margin between 13.4% and 13.7%. Diluted adjusted earnings per share are forecast in the range of $1.18 to $1.23. For the second quarter, the company projects revenue growth of 22% to 24% and adjusted EPS of $0.08 to $0.10.
The company's performance underscores its ability to compete with global sportswear giants like Nike, Adidas, and Puma, while leveraging Arc'teryx's premium positioning to capture high-end outdoor enthusiasts. Anta Sports, Amer's backer, earlier this year acquired a 29% stake in Puma, signaling its ambitions to expand its global footprint.
However, Amer's outlook includes assumptions that higher tariff rates under the International Emergency Economic Powers Act will persist through the second quarter and the remainder of 2026. Inventories rose 33% year-over-year, and the expiration of a lock-up on 557.7 million ordinary shares on May 17 could introduce additional supply if holders decide to sell. Despite these risks, the stock's premarket reaction points to continued investor confidence as long as Arc'teryx and Salomon maintain their growth trajectory and margins.
