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Amer Sports has confirmed its Q1 2024 financial results. The announcement comes a few weeks after the company announced the sale of Enve Composities to PV3, a Utah-based private investment firm.
This is the first report from the business after going public in February 2024.
First quarter revenue increased 13% year-over-year to $1.2 billion. This was led by a 44% increase in the technical apparel segment with flagship brand Arc’teryx continuing to generate best-in-class financial performance.
Revenue increased 14%. This calculation is based on a constant currency basis.
Amer Sports also reported strong gross margin expansion reflecting a shift toward highest-margin brands, channels, and regions.
Initial Public Offering proceeds (sales of shares) were used to pay down $1.4 billion of debt. The company ended 1Q with $1.7 billion of net debt.
Of the Q1 2024 report, CEO James Zheng comments: “The momentum behind our strong financial performance has continued through the first quarter of 2024, as we delivered sales and profitability above our guidance.
“Our transformation to a brand-direct business model four years ago continues to fuel profitable growth today, and our high-performance technical products are resonating with consumers globally.
“We are gaining share in the premium sports and outdoor market and are well positioned to deliver another great year in 2024.”
According to Amer Sports, Arc’teryx is generating double-digit new store growth while also delivering exceptional omni-comp growth against difficult comparisons from the first quarter of 2023.
“Omni comp” is defined as year over year revenue growth from owned retail stores and e-commerce sites that have been open at least 13 months.
The brand is seeing growth across regions, led by Asia Pacific and the Americas, followed by Greater China and Europe, the Middle East and Africa (“EMEA”).
At the Amer Sports Group level, direct-to-consumer expanded 41% with double-digit growth across all regions. Wholesale revenues decreased 1% year over year, highlighting a shift in the way Amer sells its products.
Regional growth was led by Greater China which increased 51% and the Asia Pacific region which rose by 34%.
EMEA grew 1% and revenues were flat in the Americas, where growth in the technical apparel segment was offset by declines in the ball and racquet and outdoor performance segments.
On a reported basis, gross margin for the first quarter of 2024 was 54%.
Operating profit for the first quarter 2024 was down 16% to $109 million. This is compared to $130 million for the first quarter 2023.
Net income for the first quarter of 2024 was down 63% when compared to Q1 of 2023, from $19 million to $7 million.
Net finance cost was $94 million in the first quarter.
