Amer Sports' stock rises on stronger-than-expected sales as loss narrows

By Steve Gelsi

Revenue up 16% on strength of its flagship Arc'teryx brand

Amer Sports Inc.'s stock was rallying by 10% on Tuesday after it topped analyst expectations for its second-quarter results on strength in its flagship Arc'teryx outdoor brand.

Chief Executive James Zheng said the Helsinki, Finland-based footwear, apparel and sports-gear maker "well exceeded our own high expectations on all key financial metrics."

Amer Sports (AS) said its second-quarter loss narrowed to $1.8 million, or a penny a share, from a loss of $97 million, or 25 cents a share, in the year-ago quarter.

Adjusted earnings of 5 cents a share beat the FactSet consensus estimate of a loss of a penny a share.

Second-quarter revenue from Amer Sports brands including Wilson tennis rackets and Salomon ski boots rose 16% to $994 million, ahead of the FactSet consensus estimate of $948 million.

Amer Sports stock jumped $1.20 to $13.55, the first time the stock has traded above the $13 level since June.

Looking ahead, Amer Sports expects third-quarter earnings of 8 cents to 10 cents a share, below the analyst estimate of 14 cents a share.

For full-year 2024, Amer Sports is projecting earnings of 40 cents to 44 cents a share, above the analyst estimate of 39 cents a share.

"Our unique portfolio of premium technical brands is taking share in sports and outdoor markets all around the world," Zheng said.

The quarterly update from Amer Sports marked its second as a public company after its initial public offering on Feb. 2 at $13 a share.

Since then, the stock has traded as high as $18.23 a share and as low as $11.58 a share.

The stock closed at $12.35 a share on Monday.

Also read: Amer Sports stock ends its first day of trading with a 3% gain over its discounted IPO price

-Steve Gelsi

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

08-20-24 1023ET

Copyright (c) 2024 Dow Jones & Company, Inc.