Posted: March 5, 2024 at 8:30 am ET
Shares of Amer Sports Inc. fell 6% in premarket trade on Tuesday after the Finnish sportswear company reported its first quarterly results since its February IPO.
The company, which includes the Arc’teryx, Salomon and Wilson brands, reported better-than-expected fourth-quarter revenue boosted by China and a bigger-than-expected loss. Amer Sports AS reported a fourth-quarter net loss of $94 million, or a loss of 25 cents per share, compared with a loss of $148 million, or a loss of 39 cents per share, in the year-ago quarter.
Shares of Amer Sports Inc. fell 6% in premarket trade on Tuesday after the Finnish sportswear company reported its first quarterly results since its February IPO.
The company, which includes the Arc’teryx, Salomon and Wilson brands, reported better-than-expected fourth-quarter revenue boosted by China and a bigger-than-expected loss. Amer Sport
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reported a fourth-quarter net loss of $94 million, or a loss of 25 cents per share, compared with a loss of $148 million, or a loss of 39 cents per share, in the year-ago quarter. The loss per share reflects the stock split that occurred in connection with the company’s IPO earlier this year, but does not include additional shares issued in the IPO that occurred after the end of the fourth quarter, Amer Sports said in a statement.
On an adjusted basis, Amer Sports reported a net loss of $41 million, or a loss of 11 cents per share, following net income of $46 million, or 12 cents per share, in the same period last year. Excluding extraordinary items, analysts polled by FactSet expected a loss of 1 cent per share.
Connected: Amer Sports shares end their first day of trading up 3% from their discounted IPO price
The company’s adjusted gross margin was 52.2%, an increase of 170 basis points from the prior-year quarter. Amer Sports said this was due to its highest gross margin business, Arc’teryx, growing faster than its other brands, partially offset by a strong promotional environment in the ball and racquet segment.
Revenue was $1.315 billion, up 10% from the year-ago quarter. However, the company said that was an expected slowdown from the third quarter and year-to-date trends due to a supply chain-related sales shift that occurred from the third to the fourth quarter of 2022. Analysts polled by FactSet were looking for revenue of $1.304 billion . Amer Sports said regional growth in the fourth quarter was led by Greater China, which increased by 45%, and the APAC (Asia Pacific) region, which increased by 22%. The Americas posted mid-single-digit growth, led by direct-to-consumer (DTC) strength, offset by a decline in wholesale sales, the company said.
For the first quarter, Amer Sports expects revenue growth of 6% to 8% and earnings between a loss of 1 cent and 2 cents per share, although that includes a negative impact of 8 to 9 cents from one-time finance charges related to the company’s refinancing in February. Analysts polled by FactSet were looking for earnings of 10 cents per share.
Connected: Amer Sports’ recent IPO taps the high-yield bond market with a $600 million deal
For the full year, the company expects revenue growth in the mid-teens and earnings between 30 and 40 cents per share, including a negative impact of 8 to 9 cents from one-time finance charges related to the February refinancing. On an adjusted basis, analysts polled by FactSet expected full-year earnings of 51 cents per share.
Shares of Amer Sports have risen 29.4% since the company’s IPO in February, outpacing the S&P 500 SPX’s 4.6% gain over the same period.
