Amer Sports (AS) Q2 2025: Outdoor Performance Surges 35%, Salomon and Arc'teryx Fuel Global Expansion
Outdoor performance and technical apparel segments powered Amer Sports to a robust Q2, with Salomon and Arc'teryx driving category and channel expansion globally. Management raised guidance despite tariff headwinds, citing resilient demand and pricing power across premium brands. Momentum in direct-to-consumer and Asia, especially China, signals a durable growth runway into 2026.
Summary
- Salomon Footwear Inflection: Global acceleration in Salomon sneakers and apparel is unlocking new market share and channel opportunities.
- Arc'teryx D2C Strength: Direct-to-consumer growth and premium store expansion are fueling high-margin, full-price sales for Arc'teryx.
- Outlook Raised Amid Tariffs: Management lifted full-year guidance, underscoring confidence in pricing power and brand-driven resilience.
Performance Analysis
Amer Sports delivered a standout Q2, with reported sales up 23% (22% ex-FX), led by the outdoor performance segment’s 35% surge and technical apparel’s 23% climb. Salomon’s global footwear and apparel momentum was the primary driver, particularly in China and Asia Pacific, while Arc'teryx continued to outperform in D2C channels and women’s categories. Ball and racket, anchored by Wilson, posted 11% growth but is expected to normalize to low- to mid-single-digit growth longer term.
Direct-to-consumer (D2C) channels grew 40%, with Salomon and Arc'teryx both reporting strong comps and higher full-price sell-through. Gross margin expanded 250 basis points to 58.7%, aided by favorable mix and lower discounting, while adjusted operating margin rose 260 basis points to 5.5%, partly boosted by timing of government grants. Inventory rose 29%, mainly due to early receipts and supply chain optimization, but management expressed confidence in quality and sell-through, especially for Arc'teryx.
- Channel Mix Shift: D2C outpaced wholesale, reflecting Amer’s pivot to higher-margin, brand-controlled distribution.
- Regional Outperformance: Asia Pacific and China led growth, highlighting Amer’s penetration into premium sports and outdoor markets.
- Margin Expansion: Gross and operating margins improved, with outdoor performance segment margin up 720 basis points, driven by footwear mix and SG&A leverage.
Management continues to manage tariff exposure proactively, leveraging pricing power and cost mitigation, with negligible impact expected to consolidated results in 2025.
Executive Commentary
"The inflection of Salomon Footwear adds a strong second leg of growth to Arc'teryx's already exceptional sales and margin trajectory, significantly elevating the long-term value creation potential of our unique brand portfolio."
Andrew Page, Chief Financial Officer
"Arc'teryx delivers another quarter of broad-based strengths across regions, channels, and categories, especially footwear and women, which continue to grow faster than the brand overall."
James Zhang, Chief Executive Officer
Strategic Positioning
1. Salomon’s Outdoor Sneaker Category Creation
Salomon is establishing a new “outdoor sneaker” category, blending performance and sports style to capture younger and female demographics. The XT Whisper and AeroCry 3 launches, along with the Gravel line, exemplify this strategy, driving strong sell-through and pre-orders globally, especially in China and Europe. Expansion into the U.S. is in its early stages, with just one store but plans for multiple new locations in New York, Chicago, and Los Angeles, leveraging successful compact shop formats proven in Asia and Europe.
2. Arc'teryx D2C and Women’s Growth Engine
Arc'teryx’s direct-to-consumer model, defined as sales through brand-owned stores and e-commerce, continues to outperform, posting a 15% Omnicomp in Q2 despite tough comps. Women’s categories grew over 30%, with explosive demand for new models like the Clarkia pant, Neopant, and Altera crops. Store expansion is selective, prioritizing flagship and high-productivity locations, with a focus on premium experiences in North America and China. Full-price sales mix is rising, with markdowns down 500 basis points in retail and 100 basis points online, supporting margin expansion.
3. China as a Growth Flywheel
China remains a core strategic market, with all major brands—Salomon, Arc'teryx, and Wilson—reporting double-digit growth and expanding store footprints. Salomon aims to reach 290 shops in China by year-end, up from just five three years ago. Amer’s local operating platform and premium positioning resonate with younger, female, and luxury consumers, and management sees significant runway as brand awareness and channel penetration deepen.
4. Ball and Racket: Tennis 360 and Soft Goods Diversification
Wilson’s ball and racket segment, still 85–90% equipment, is driving growth through the Tennis 360 concept—a brand-owned retail and test format targeting tennis lifestyle consumers. China and Asia Pacific lead growth, while North America remains in early rollout stages. Soft goods now represent 15% of segment sales, helping offset challenges in golf, inflatables, and baseball gloves.
5. Margin Structure and Tariff Mitigation
Gross margin gains are driven by favorable product and channel mix, especially in footwear and apparel. Management is proactively managing tariffs by leveraging pricing power (notably in Wilson) and sourcing flexibility. Operating margin expansion is balanced by disciplined SG&A investment in store expansion and marketing, with careful allocation to support inflection points in Salomon and Arc'teryx.
Key Considerations
Amer Sports is executing a multi-brand, multi-channel growth strategy, with a focus on premium positioning, D2C expansion, and geographic diversification. The quarter highlights several inflection points and strategic levers for investors to monitor:
Key Considerations:
- Salomon U.S. Expansion: Early-stage U.S. rollout offers significant upside, but execution risk remains as Amer adapts proven formats from Asia/Europe to a competitive U.S. market.
- Arc'teryx Inventory and Full-Price Mix: Inventory build is intentional to support demand, but stockouts in key women’s and footwear SKUs highlight ongoing supply-demand balancing challenges.
- China Growth Sustainability: While current momentum is strong, continued growth in China depends on premiumization trends and effective local execution amid evolving consumer preferences.
- Tariff and Regulatory Agility: Management’s proactive pricing and sourcing strategies are containing tariff impacts, but ongoing vigilance is needed as global trade dynamics shift.
Risks
Tariff escalation remains a key external risk, particularly for ball and racket, though management expects negligible consolidated impact in 2025. Inventory overhang or misalignment, especially if demand moderates, could pressure margins. U.S. market execution for Salomon and Arc'teryx is unproven at scale, and any missteps could slow growth. Macroeconomic volatility, especially in China, and competitive intensity in premium sportswear also warrant close monitoring.
Forward Outlook
For Q3 2025, Amer Sports guided to:
- ~20% reported revenue growth (including 150bps FX benefit)
- Adjusted gross margin of ~56.5%
- Operating margin between 12% and 13%
- Adjusted diluted EPS of $0.20–$0.22
For full-year 2025, management raised guidance to:
- 20–21% revenue growth (prior: 15–17%)
- Adjusted gross margin of ~57.5% (prior: 56.5–57%)
- Operating margin of 11.8–12.2% (prior: 11.5–12%)
- Adjusted diluted EPS of $0.77–$0.82 (prior: $0.67–$0.72)
Management cited robust D2C momentum, continued China outperformance, and strong early Q3 trends as drivers of the guidance raise. Key watchpoints include:
- Salomon and Arc'teryx store rollout and inventory management
- Tariff impact and pricing flexibility
Takeaways
Amer Sports is capitalizing on premium brand momentum, with Salomon and Arc'teryx providing dual engines for growth and margin expansion.
- Salomon’s global inflection and channel expansion are redefining the outdoor performance segment, but U.S. execution will be critical to sustaining the trajectory.
- Arc'teryx’s D2C and women’s growth, paired with higher full-price sell-through, is driving a healthier, more profitable business mix.
- Investors should monitor U.S. rollout progress, inventory normalization, and China demand signals, as these will shape Amer’s ability to deliver above-guidance results into 2026.
Conclusion
Amer Sports is executing on a multi-brand, premium-led strategy that is delivering above-market growth and expanding margins despite external headwinds. The company’s ability to scale Salomon and Arc'teryx globally, especially through D2C and in China, positions it for continued outperformance, but execution in new markets and inventory discipline will be key to sustaining momentum.
Industry Read-Through
Amer’s premiumization, D2C acceleration, and China penetration reflect broader sports and outdoor industry trends. The shift to brand-owned retail and higher full-price sales is a blueprint for margin expansion across the sector. Salomon’s outdoor sneaker category creation signals a blurring of performance and lifestyle boundaries, a trend likely to influence both incumbents and new entrants. Tariff mitigation through pricing and supply chain agility is now a baseline competency for global brands. U.S. market remains highly competitive, and Amer’s playbook will be closely watched by peers seeking to replicate Asia-led growth in North America.