Despite Tariffs, No Hint of a Slowdown at Arc’teryx Parent Amer Sports in Q2

Nothing seems to be in the way of growth at Amer Sports, not even the new tariff rates.

Given strong first-half results, the Arc’teryx and Salomon footwear parent also is raising full-year 2025 guidance, despite higher tariffs than expected in previous guidance.

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CFO Andrew Page said the company is raising full year revenue, margin and earnings per share (EPS) expectations. “This update guidance assumes the current 30 percent incremental U.S. tariff on goods from China plus the current tariff rates on all other countries will stay in place for the remainder of 2025,” he said in a statement.

Page added that while the tariff impact to the company’s ball and racquet segment will be slightly higher than expected, mitigation strategies already in place across Amer’s brands should minimize the impact to the firm’s consolidated results this year.

Net income for the three months ended June 30 swung to the black at $18.2 million, or 3 cents a diluted share, from a net loss a year ago of $3.7 million, or 1 cent, in the same year-ago quarter. On an adjusted basis, net income was $36 million, or 6 cents a diluted share. Revenue rose 23.5 percent to $1.24 billion from $1.00 billion.

In the quarter, outdoor performance revenue rose 32 percent to $414 million on a constant currency basis, while technical apparel revenue rose 23 percent to $509 million and ball and racquet rose 10 percent to $314 million.

For the six months, net income skyrocketed to $152.8 million, or 27 cents a diluted share, from net income of $1.4 million, or 0.0 cents, in the year-ago period. Revenue rose 23.5 percent to $2.71 billion from $2.19 billion.

For the year ending Dec. 31, 2025, revenue growth is expected to be between 20 percent to 21 percent, with gross margin at 57.5 percent and diluted EPS at between 77 cents and 82 cents. The outdoor performance segment is forecasted to grow revenue at up 22 percent to 25 percent, while technical apparel revenue growth is guided to an increase of 22 percent to 25 percent. Revenue at ball and racquet is expected to rise between 7 percent and 9 percent.

For the third quarter ending Sept. 30, revenue is expected to increase 20 percent, and diluted EPS at between 20 cents to 22 cents.

Separately, the Finnish firm also said that Joe Dudy, a 30-year veteran at Wilson and Amer Sports, has stepped down as president and chief executive officer of Wilson, effective Aug. 31, to pursue other opportunities. He will continue to serve as an advisor through March 1, 2026. Amer’s CFO will take on the role of interim president and CEO of Wilson and the ball and racquet segment during the company’s executive search for a replacement, effective Sept. 1. Page will also continue in his current role as CFO of Amer Sports.

“Joe has been a highly appreciated and respected brand leader and a valued member of the global leadership team. We extend our best wishes for his future,” said Amer’s president and CEO James Zheng.

Wall Street’s sentiment on the firm’s growth prospects has been bullish, particularly due to growing momentum with the company Salomon sneakers and with footwear as the fastest growing category at its Arc’teryx brand.

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