Amer Sports (AS) earnings Q4 2023

Shares of Amer Sports, the maker of Wilson tennis rackets and Lousiville Slugger baseball bats, fell on Tuesday after the company reported strong sales in China but a slowdown in wholesale orders.

Here’s how the newly public athletic company did in its fourth quarter. CNBC didn’t compare the results to Wall Street estimates because it’s the first earnings report since Amer Sports went public.

  • Loss per share: 25 cents
  • Revenue: $1.32 billion

In the three months ended Dec. 31, the company reported a net loss of $94.9 million, or 25 cents per share, compared with $148.3 million, or 39 cents per share, a year earlier. 

Sales rose to $1.32 billion, up about 10% from $1.2 billion a year earlier.

Shares closed about 5% lower.

Amer, which also owns Arc’teryx, Salomon, and a number of other athletic equipment and apparel brands, operates in three distinct business segments. They are technical apparel, which includes its pricey Arc’teryx winter jackets; outdoor performance, such as Salomon’s winter sports equipment; and ball and racquet sports, which includes equipment and apparel from Wilson and Louisville, among others.  

During the quarter, sales for Amer’s technical apparel rose 26% year over year to $550 million, driven by a 42% jump in direct sales. Sales in the segment primarily come from shoppers who are buying directly from Amer’s brands rather than from wholesale partners.

Sales for outdoor performance increased 2% to $523 million, driven by strength in the segment’s winter sports equipment franchise, which was offset by a slowdown in wholesale orders for Salomon footwear.

Ball and racquet sales declined 3% to $242 million as the segment lapped tougher comps. In the year-ago period, retailers were still dealing with supply chain issues and had over-ordered equipment like tennis rackets and baseball bats. As they looked to keep their inventory levels in check, some wholesalers pulled back on orders during the quarter, but Amer expects the segment will level out in the quarters ahead and end fiscal 2024 with sales up in the low- to mid-single digit range.

The company started trading on the New York Stock Exchange last month under the ticker “AS.” The shares rose just 3% in Amer’s debut on the public markets after it priced its IPO at a discount. Sellers showed muted interest in the stock during its first day of trading over concerns about its connections and exposure to China and its debt-laden balance sheet. 

Founded in Helsinki in 1950, Amer was a Finnish public company until it was taken private in 2019 by a consortium of investors led by China’s Anta Sports, FountainVest Partners, Anamered Investments and Tencent. 

Since the acquisition, sales grew about 45% from $2.45 billion in 2020 to $3.55 billion in 2022. Revenue jumped again in 2023 to $4.37 billion, the company said Tuesday.

Still, Amer failed to turn a profit between 2020 and 2023. In 2023, the company lost $208.8 million, but its losses narrowed from $230.9 million in 2022.

In a statement on…

Read More: Amer Sports (AS) earnings Q4 2023

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