Amer Sports (AS) Q3 2025: Outdoor Performance Sales Surge 36%, Salomon and Arc'teryx Drive Double-Digit Global Gains

2025-11-18 | By EarningsIQ Research

Amer Sports delivered a breakout Q3, as Salomon and Arc'teryx momentum fueled 36% outdoor performance growth and global share gains across all regions. Direct-to-consumer and premium positioning are reshaping the business mix, with management raising guidance and signaling confidence for 2026. Brand investments, omnichannel acceleration, and disciplined channel pruning set the stage for further expansion, despite near-term margin and inventory normalization dynamics.

Summary

• Salomon Footwear and Arc'teryx Omnichannel Acceleration: Technical brands captured outsized demand, driving category and regional outperformance.
• Direct-to-Consumer Transformation: DTC growth outpaced wholesale, shifting the revenue base and elevating gross margins.
• Guidance Raised, Margin Expansion Continues: Management lifted full-year outlook and expects high-teens growth in 2026, citing robust brand momentum.

Performance Analysis

Amer Sports posted a standout quarter, with group-level sales up 30% and all three operating segments—technical apparel, outdoor performance, and ball and racket—delivering both revenue and margin ahead of expectations. The outdoor performance segment led with 36% revenue growth, powered by Salomon footwear, apparel, and accessories, while technical apparel (dominated by Arc'teryx) grew 31%. Ball and racket delivered 16% growth, propelled by Wilson Tennis 360 and soft goods expansion.

Direct-to-consumer (DTC) channels surged 51%, led by Salomon in Greater China and Asia-Pacific, and Arc'teryx omnichannel comps accelerated to 27% from 15% in the prior quarter. Wholesale grew 18%, but the strategic focus is clearly tilting toward DTC, which is structurally improving gross margin—up 240 basis points to 57.9%—and operating leverage. Regional strength was broad-based, with Asia-Pacific and China leading, but the Americas and EMEA both accelerated to double-digit growth as well.

• Channel Shift Drives Margin Gains: DTC and premium mix lifted gross margin, with further upside as store and e-commerce investments scale.
• Inventory Up, But Quality Controlled: Inventory rose 28% YoY, mainly due to earlier receipts, ocean shipping, FX, and Korea acquisition, but management expressed comfort given sales velocity and in-stock needs.
• Operating Cash Flow Rebound: Operating cash flow reached $104 million YTD versus $18 million last year, reflecting improved working capital discipline and profit growth.

Segment-level profitability diverged: Outdoor performance margin expanded 420 basis points to 21.7%, while technical apparel margin dipped 100 basis points (timing of government grants cited), and ball and racket margin rose 70 basis points to 7.6%. Management raised full-year revenue, margin, and EPS guidance, reflecting sustained demand and operational execution.

Executive Commentary

Strategic Positioning

1. Direct-to-Consumer and Omnichannel Acceleration

Amer Sports is rapidly evolving into a DTC-first model, with DTC growth of 51% group-wide and omnichannel comps at Arc'teryx re-accelerating to 27% in Q3. This shift is structurally improving gross margins and deepening consumer engagement, as seen in robust traffic and stable markdowns. The company is investing in flagship and epicenter stores in key global cities, while optimizing legacy and underperforming locations.

2. Brand-Led Global Expansion

Salomon and Arc'teryx are the primary growth engines, each leveraging technical innovation, premium positioning, and targeted regional expansion. Salomon's epicenter strategy and cultural relevance with younger, especially female, consumers are driving share gains in both performance and sport style segments, particularly in Asia and now in the U.S. Arc'teryx's women's and footwear categories are outpacing overall brand growth, and the Valence sub-brand is gaining traction in high-end wholesale.

3. Channel and Distribution Pruning

Management is actively pruning non-strategic wholesale doors, especially for Salomon in the U.S., to focus on brand elevation and long-term profitability. This is causing some near-term headwind, but sets up a cleaner, higher-quality distribution base by the second half of 2026. The company is also converting distributor relationships (e.g., Korea) to owned DTC, which will lift sales and profit dollars with minimal margin dilution.

4. Regional Diversification and China Outperformance

All four regions posted double-digit growth, with Asia-Pacific and China leading at 54% and 47% respectively. Management attributes China strength to brand resonance with younger consumers and successful execution during key shopping festivals. U.S. and Europe are also accelerating, with North America highlighted as a major growth runway for both Salomon and Wilson Tennis 360.

5. Margin Expansion and Cost Discipline

Gross margin expansion is being driven by favorable channel, product, and regional mix, as well as footwear cost optimization. SG&A leverage is mixed by segment, with investments in growth (especially soft goods and store expansion) offsetting some of the gains. Inventory and CapEx are elevated to support growth, but working capital discipline is improving.

Key Considerations

Strategic execution in Q3 was characterized by aggressive brand investment, disciplined channel management, and a clear pivot toward premium, direct engagement with consumers. These moves are reshaping Amer Sports’ revenue base, cost structure, and long-term earnings power.

Key Considerations:

• Salomon U.S. Expansion: U.S. is still an underpenetrated market for Salomon, with epicenter store openings and curated wholesale partnerships poised to accelerate brand awareness and sales.
• Arc'teryx Women's and Footwear Growth: Women's and footwear categories are outgrowing the core, signaling sustained brand heat and incremental market opportunity.
• Wilson Tennis 360 Internationalization: Tennis 360 concept is scaling in China and beginning to show promise in U.S. southern markets, with further rollout in Japan and Australia.
• Inventory and CapEx Management: Elevated inventory and CapEx reflect proactive supply chain and store investments, but normalization is expected by second half 2026.
• Channel Pruning Headwinds: Distribution cleanup, especially for Salomon in the U.S., will weigh on growth until H2 2026, but should yield a stronger, more profitable base thereafter.

Risks

Key risks include: execution missteps in DTC expansion, slower-than-expected U.S. brand adoption (especially for Salomon), inventory overhang if demand cools, and macro or regulatory shocks in China or tariff-affected markets. Channel pruning and elevated CapEx may pressure near-term margins if top-line momentum slows, and competitive intensity remains high in both technical and lifestyle segments.

Forward Outlook

For Q4, Amer Sports guided to:

• Continued double-digit sales growth across all segments and regions
• Operating margin expansion, with targeted investments in marketing and new store openings

For full-year 2025, management raised guidance:

• Revenue growth of 23% to 24% (previously 20% to 21%)
• Adjusted operating margin of 12.5% to 12.7%
• EPS of $0.88 to $0.92 (up from $0.77 to $0.82)

Management cited:

• Robust global brand momentum, particularly in DTC and premium channels
• Confidence in delivering high end of long-term growth algorithm (low double-digit to mid-teens) in 2026

Takeaways

Amer Sports is executing a high-conviction pivot to DTC and premium brand leadership, with Salomon and Arc'teryx driving global share gains and margin expansion. Inventory and CapEx are elevated but rationalized, and channel pruning is a near-term drag that sets up a cleaner base for 2026.

• Brand Heat and DTC Expansion: Premium positioning and omnichannel acceleration are translating into above-market growth and gross margin gains, particularly in Asia and North America.
• Disciplined Channel Management: Pruning non-strategic wholesale and focusing on epicenter stores is reshaping the revenue base for long-term profitability.
• Watch for U.S. Salomon Inflection: Near-term door exits will mask underlying momentum, but successful execution in U.S. epicenters could drive a step-change in growth from 2026 onward.

Conclusion

Amer Sports’ Q3 results confirm the power of its technical brands and DTC-led strategy, with Salomon and Arc'teryx delivering broad-based outperformance and management raising guidance. Execution on channel mix, inventory, and U.S. expansion will be critical to sustaining momentum into 2026.

Industry Read-Through

Amer Sports’ performance underscores the ongoing bifurcation in global sportswear, with premium, technical, and DTC-focused brands outpacing mass-market peers, especially in China and Asia-Pacific. Salomon’s youth and female appeal, and Arc'teryx’s women’s and footwear growth, highlight the importance of category innovation and cultural relevance. The strategic channel pruning and investment in flagship experiences echo moves by other premium brands, suggesting that scale and profitability will increasingly depend on direct consumer relationships and disciplined distribution. Retailers and brands with lagging DTC or technical innovation risk further share loss as market polarization accelerates.

AS Consumer Discretionary Sportswear Omnichannel Direct-to-Consumer Brand Expansion China Inventory