Amer Sports Reports Record First Quarter 2025 Financial Results,

CEO James Zheng commented, "We began 2025 with a great performance in the first quarter, and that momentum has continued into the second quarter. Led by Arc'teryx and Salomon footwear, our unique portfolio of premium technical brands continues to create white space and take market share in sports and outdoor markets around the world.

Given macro uncertainty related to U.S. import tariff rates, we are operating our business with discipline and flexibility. We are confident in our position to manage through a variety of tariff outcomes given our premium brands with pricing power, strong secular growth trends, and relatively low U.S. revenue exposure."

FIRST QUARTER 2025 RESULTS

For the first quarter of 2025, compared to the first quarter of 2024:

• Revenue increased 23% to $1,473 million, or 26% on a constant currency basis¹. Revenues by segment:
  • Technical Apparel increased 28% to $664 million, or increased 32% on a constant currency basis. This reflects an omni-comp² growth of 19%.
  • Outdoor Performance increased 25% to $502 million, or increased 29% on a constant currency basis.
  • Ball & Racquet Sports increased 12% to $306 million, or increased 13% on a constant currency basis.
• Gross margin increased 350 basis points to 57.8%;Adjusted gross margin increased 330 basis points to 58.0%.
• Selling, general and administrative expenses increased 18% to $642 million;Adjusted selling, general and administrative expenses increased 19% to $627 million.
• Operating profit increased 97% to $214 million;Adjusted operating profit increased 79% to $232 million.
• Operating margin increased 540 basis points to 14.5%.Adjusted operating margin increased 490 basis points to 15.8%. Adjusted operating margin by segment:
  • Technical Apparel increased 110 basis points to 23.8%.
  • Outdoor Performance increased 990 basis points to 14.7%.
  • Ball & Racquet Sports increased 270 basis points to 6.6%.
• Net income increased from $5 million to $135 million, or $0.24 diluted earnings per share;Adjusted net income increased from $50 million to $148 million, or $0.27 diluted earnings per share.

Balance sheet. Year-over-year inventories increased 15% to $1,267 million. Net debt³ was $515 million, and cash and cash equivalents totaled $422 million at quarter end.

OUTLOOK

CFO Andrew Page said, "Our underlying business momentum, diverse global footprint, clean balance sheet, and strong pricing power positions us well to navigate rising tariffs and associated macro uncertainties.

Given the upside in the first quarter and our continued operating and financial momentum — and despite higher tariffs — we are raising our full year revenue and EPS expectations. This updated guidance assumes that the current 30% tariff on goods arriving to the U.S. from China and 10% tariff on all other countries will stay in place for the remainder of 2025. Given the mitigation strategies we already have underway, we expect the impact to our P&L from higher tariffs to be negligible this year. And as we've said before, should strong trends continue and better-than-anticipated demand materialize, we believe we are well positioned to deliver financial performance ahead of these expectations.

Looking beyond 2025, we believe we will be able to offset the vast majority of higher import tariffs under a wide range of scenarios through pricing, vendor renegotiation, and supply chain maneuvers."

FULL-YEAR 2025

Amer Sports is updating guidance for the year ending December 31, 2025 (all guidance figures reference adjusted amounts). Guidance assumes U.S. tariffs on imports from China remain at 30% and Rest-of-World at 10% for the remainder of the year:

• Reported revenue growth: 15 – 17%
• Gross margin: 56.5 – 57%
• Operating margin: 11.5 – 12%
• Net finance cost: approximately $120 million
• Effective tax rate: 30 – 32%
• Fully diluted share count: approximately 560 million
• Fully diluted EPS: $0.67 – 0.72
• D&A: approximately $350 million, including approximately $180 million of ROU depreciation
• CapEx: approximately $300 million
• Technical Apparel:
  • Revenue growth of 20 – 22%
  • Segment operating margin approximately 21%
• Outdoor Performance:
  • Revenue growth of mid-teens%
  • Segment operating margin approximately 9.5%
• Ball & Racquet:
  • Revenue growth of mid-single-digit
  • Segment operating margin approximately 3 – 4%

SECOND QUARTER 2025

Amer Sports is providing the following guidance for the second quarter ending June 30, 2025 (all guidance figures reference adjusted amounts). Guidance assumes U.S. tariffs on imports from China remain at 30% and Rest-of-World at 10% for the remainder of the year:

• Reported revenue growth: 16 – 18%
• Gross margin: 57 – 58%
• Operating margin: 3 – 4%
• Net finance cost: $25 – 30 million
• Effective tax rate: 30 – 32%
• Fully diluted share count: approximately 560 million
• Fully diluted EPS: $0.00 – 0.02

Other than with respect to revenue, Amer Sports only provides guidance on a non-IFRS basis. The Company does not provide a reconciliation of forward-looking non-IFRS measures to the most directly comparable IFRS Accounting Standards measures due to the difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations without unreasonable efforts. The Company is unable to address the probable significance of the unavailable reconciling items, which could have a potentially significant impact on its future IFRS financial results. The above outlook reflects the Company’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change.