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Amer Sports earnings: Shares fall but profitability in sight

Illustration of a person skiing on a mountain made of money.

Illustration: Gabriella Turrisi/Axios

Amer Sports released its first earnings report Tuesday morning after going public last month, sending shares lower after it missed analysts' earnings estimates.

Why it matters: Amer — one of the first consumer companies to test the IPO markets this year — raised $1.37 billion in its offering and remains closely watched.

What they're saying: CFO Andrew Page tells Axios he expects the company to achieve profitability on a reported basis by early next year.

  • The company improved its debt positioning with the IPO, and "that's going to continue to drive additional cash flow," Page says.
  • Amer retired about $4 billion of shareholders loans and refinanced the remaining $1.8 billion of third-party loans to more favorable terms.
  • The company lost $208.8 million in the fiscal 2023 year, narrowing from $230.9 million in the prior fiscal year.

By the numbers: Sales rose nearly 10% to $1.32 billion in Q4 from a year ago, thanks to a boost from China.

  • Sales in Greater China in 4Q rose 45% from the year-earlier period. The APAC region rose about 22%.
  • Even after today's 5% decline, shares are up nearly 23% from its market debut.

The big picture: Amer continues to see promise outside of Greater China to the wider APAC region, Page says.

  • The company hopes to increase its penetration in Europe and introduce more of its products, including Salomon, to the North American audience.
  • "We have great products, but in their original state, they were very localized. Now, we're basically running our strategy that introduces this great product to the rest of the geographies that they don't participate in," he says.

Editor's note: This story has been corrected to reflect that sales for Q4 (not for the entire year) rose 10% from a year ago.

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