Finnish firm Amer Sports' revenue soars 16% in Q2 FY24

Finnish multinational sporting goods company Amer Sports has reported a 16 per cent increase in revenue for the second quarter of fiscal 2024 (Q2 FY24), reaching $994 million, up from the previous year. On a constant currency basis, revenue growth was even stronger at 18 per cent.

The company’s performance was driven by robust growth across its main segments. The technical apparel segment saw revenue surge by 34 per cent to $407 million, with a 38 per cent increase on a constant currency basis. This growth reflects a strong omni-channel performance, with omni-comp sales growing by 26 per cent. The outdoor performance segment also performed well, with an 11 per cent increase in revenue to $304 million, or 13 per cent on a constant currency basis.

Amer Sports' gross margin improved by 220 basis points to 55.5 per cent, while the adjusted gross margin increased by 200 basis points to 55.8 per cent. However, selling, general, and administrative expenses rose by 26 per cent to $560 million. On an adjusted basis, these expenses increased by 21 per cent to $526 million, the company said in a press release.

The company reported an operating loss of $9 million for Q2 FY24, a decline from an operating profit of $8 million in the same quarter of 2023. Despite this, Amer Sports' adjusted operating profit showed a significant improvement, increasing by 40 per cent to $29 million. The adjusted operating margin increased by 50 basis points to 2.9 per cent. The technical apparel segment saw its adjusted operating margin improve by 110 basis points to 14.2 per cent. The outdoor performance segment saw a significant increase in its adjusted operating margin, which rose by 380 basis points to minus 2.1 per cent.

Despite the overall operating loss, Amer Sports managed to reduce its net loss by 98 per cent to $4 million, or $0.01 diluted loss per share. On an adjusted basis, net income increased by 129 per cent to $25 million, translating to $0.05 diluted earnings per share.

"I am very pleased by our financial and operational performance in the second quarter of 2024. Our unique portfolio of premium technical brands is taking share in sports and outdoor markets all around the world. Led by our flagship Arc'teryx brand, we well exceeded our own high expectations on all key financial metrics, positioning us to deliver another strong year in 2024," said CEO James Zheng.

Fibre2Fashion News Desk (DP)