Amer Sports, Inc.

Amer Sports reported second-quarter results on August 18 that beat its own guidance and then raised its full-year outlook. Revenue climbed 32% to $1.63 billion, adjusted operating profit nearly tripled, and diluted earnings per share reached $0.18, with every region and segment posting double-digit growth. Technical Apparel grew 32% to $674 million, Outdoor Performance rose 37% to $569 million, and Ball & Racquet Sports increased 24% to $390 million. The company raised full-year 2026 guidance to roughly 24% reported revenue growth, a gross margin of 60.5% to 61.0%, an operating margin of 14.2% to 14.5%, and diluted EPS of $1.27 to $1.30. Gross margin expanded 710 basis points to 65.6%, but 390 of those points came from net tariff refunds, and third-quarter revenue growth is guided at 18% to 20%, well below the 32% just reported.

Amer Sports, Inc. updated its long-term financial algorithm and raised third quarter 2026 guidance ahead of its Investor Day in Annecy, France. The company now expects third quarter 2026 year-over-year revenue growth of 20 to 22 percent, up from its previous guidance range of 18 to 20 percent, with adjusted operating margin slightly above the high end of its prior 13.5 to 14 percent range. For the long term, Amer Sports Group reiterated an annual revenue CAGR of low-double digits to mid-teens and annual adjusted operating margin expansion of 30 to 70-plus basis points, with an effective tax rate approaching 25 percent. Within the group, the Technical Apparel and Outdoor Performance segments are each expected to grow revenue at a mid-teens annual CAGR with adjusted operating margin expansion of 20 to 60-plus basis points, while the Ball & Racquet segment is guided to mid-to-high single digit annual revenue growth with the same 20 to 60-plus basis point margin expansion. CEO James Zheng credited strong growth across all three segments, and CFO Andrew Page pointed to Arc'teryx, Salomon Softgoods, and Wilson Tennis 360 as the company's three key growth engines.

Amer Sports reported second quarter fiscal 2026 revenue growth of 32% on a reported basis, or 30% excluding currency, and raised its full-year revenue growth guidance to approximately 24%. Adjusted gross margin increased 710 basis points to 65.8%, including a one-time net tariff refund benefit of $64.3 million, and adjusted operating margin expanded 730 basis points to 12.8%. The company now expects full-year adjusted diluted EPS of $1.27 to $1.30, up from prior guidance of $1.18 to $1.23, and raised adjusted operating margin guidance to 14.2% to 14.5%. All three segments grew strongly, with Technical Apparel revenue up 32% to $674 million, Outdoor Performance up 37% to $569 million, and Ball & Racquet up 24% to $390 million. The company cited continued momentum across Arc'teryx, Salomon Softgoods, and Wilson Tennis 360, and noted that DTC represented approximately 55% of revenue, a record high.

Several major shoe and apparel companies have received refunds for reciprocal tariffs imposed last year under the International Emergency Economic Powers Act that were ruled illegal by the U.S. Supreme Court in February. Target Corp. received $994 million in the second quarter ended Aug. 1, while Nike Inc. received $986 million as of July 31, including a $302 million refund that boosted fourth-quarter net income by 407 percent. Columbia Sportswear Co. received $78 million, Amer Sports Inc. received $50.1 million, and Weyco Group Inc. has received $18.6 million of its $19.3 million in claims. Consumer lawsuits filed against companies such as Costco and Nike seek to distribute refunds to shoppers who paid higher prices, but the U.S. Customs and Border Protection is only processing refunds for registered importers of record, and retailers do not necessarily know which customers bought which items.

Baidu shares plunged 12.7% after the company reported second-quarter 2026 adjusted earnings of $1.06 per share, widely missing the Zacks Consensus Estimate of $1.51. Western Digital shares slid 7.4% amid a rough session for tech stocks. ExxonMobil Holdings shares rose 2.5% as energy emerged as one of the biggest winning sectors. Amer Sports shares gained 3.2% after reporting second-quarter fiscal 2026 adjusted earnings of 22 cents per share, beating the Zacks Consensus Estimate of 11 cents.

Amer Sports reported a 339% increase in operating profit to $192 million for the second quarter, driven by strong growth across its Arc'teryx, Salomon, and Wilson brands. Net income surged to $117 million from $22.4 million a year earlier, including a $50.1 million benefit from tariff refunds. The company now expects full-year revenue growth of roughly 24%, gross margin of 60.5% to 61.0%, operating margin of 14.2% to 14.5%, and adjusted diluted EPS of $1.27 to $1.30. CEO James Zheng highlighted over 30% revenue growth and strong operating margin expansion, with all segments, geographies, and channels achieving strong double-digit growth.

Amer Sports reported second-quarter 2026 earnings that beat revenue and profit expectations, expanded operating margins, and led to a second consecutive increase in full-year guidance. The most followed valuation narrative puts the stock's fair value at $50.11, compared with a last close of $33.62, implying the shares are 32.9% undervalued. A separate discounted cash flow model estimates fair value at $47.39 per share, still above the current price. The company's direct-to-consumer expansion is credited with driving higher full-price sales and margin gains, though risks include heavy exposure to Asia Pacific demand and execution costs of aggressive store growth. The stock rose 3.22% on the day but remains down 10.35% year-to-date.