By
Bloomberg
Published
November 19, 2024
Amer Sports Inc. reported third-quarter earnings that beat analysts’ estimate, indicating that the Finnish sports goods maker is on track to meet or even surpass its full-year financial outlook.
The owner of brands including Wilson, Salomon and Arc’teryx reported revenue of $1.35 billion during the quarter, surpassing analysts’ estimates of $1.3 billion. Direct-to-consumer revenue was $480 million, compared with the consensus estimate of $440.6 million.
Adjusted earnings per share was 14 cents, higher than the 10 cents estimated by analysts.
The performance prompted the retailer, backed by China’s largest athletic-apparel producer Anta Sports Products Ltd., to narrow its full-year revenue forecast to a growth of 16%-17% from 15%-17% seen previously. It expects adjusted EPS to come in between 43-45 cents this year, up from the 40-44 cents guided earlier. The second straight quarter of earnings-beat comes amid Chinese shoppers embracing niche athleisure labels defying a broader slowdown in consumption.
While a general spending pullback among Chinese consumers has battered global brands from LVMH to Starbucks Corp., others such as yoga gear maker Lululemon Athletica Inc., footwear company Hoka and ski wear label Descente Ltd. have fared well. That’s evident from their Tmall stores posting double-digit sales growth in the 12 months through September, according to data from analytics firm Hangzhou Zhiyi Technology.
The trend shows Chinese shoppers are moving from ostentatious luxury to brands that offer intimate comfort. The pandemic’s work-from-home legacy has also ushered in an era of loose, comfy silhouettes that’s boosting athleisure brands.