Amer Sports, Inc. (NYSE:AS) enters its second-quarter report with a tougher problem than weak demand: clearing a bar it raised itself. First-quarter revenue climbed 32% to $1.945 billion, while Technical Apparel grew 33% and Outdoor Performance surged 42%. The strength prompted management to lift its 2026 revenue-growth outlook to 20% to 22% and adjusted EPS guidance to $1.18 to $1.23. For the second quarter, consensus estimates call for roughly $1.54 billion in revenue and adjusted EPS of $0.11. For Amer Sports, Inc. (NYSE:AS), simply delivering another solid quarter may not be enough. The report will test whether Arc’teryx and Salomon can maintain premium growth and support another guidance increase.
Amer Sports, Inc. (NYSE:AS) delivered more than headline growth in the first quarter. Direct-to-consumer revenue rose nearly 45% and represented about half of total sales. Adjusted gross margin expanded 200 basis points to 60%, while adjusted operating margin improved 160 basis points to 17.4%. Technical Apparel’s adjusted operating margin reached 26.4%, and Outdoor Performance’s margin climbed to 20.4%.
The breadth also helped Amer Sports, Inc. (NYSE:AS) make a stronger case that its momentum is durable. Revenue increased 44.5% in Greater China, 26.6% in Europe, the Middle East and Africa, and 18.1% in the Americas. That mix shows the story is broader than one geography, even though China remains a major growth engine.
Bull Case: Arc’teryx and Salomon Still Have Room
The bull case for Amer Sports, Inc. (NYSE:AS) rests on premium brands growing through several channels at once. Technical Apparel direct-to-consumer revenue, led by Arc’teryx, rose 40.8%, while Outdoor Performance direct-to-consumer revenue, led by Salomon, increased 56.9%. Technical Apparel omni-comp rose 18.5%, while Outdoor Performance omni-comp increased 28.8%, suggesting growth was not purely driven by new-store expansion.
Arc’teryx owned retail stores increased from 176 to 257, with the increase including 46 acquired stores in Korea. Salomon’s owned retail store count rose 40.2% from 241 to 338. More stores, strong digital demand and premium pricing can continue lifting sales while supporting margins, particularly if footwear and apparel become larger parts of the mix.
Bear Case: The Bar Is Rising Faster
For Amer Sports, Inc. (NYSE:AS), the risk is less about whether growth remains positive and more about whether it stays exceptional. Greater China grew much faster than the Americas, leaving results exposed to a region where consumer conditions and policy can shift. Inventory also rose 33%, roughly matching sales growth but reducing the room for a sudden demand slowdown. Moreover, the full-year outlook includes a 200 to 250 basis-point currency benefit, while consensus estimates already sit above management’s second-quarter EPS guidance of $0.08 to $0.10. A result that would look strong for most consumer companies could still disappoint here.
Insider Monkey’s Hedge Fund Data
The available filings reflect positions held before the company’s second-quarter report. Insider Monkey’s first-quarter database showed 69 hedge funds holding Amer Sports, Inc. (NYSE:AS) at the end of March 2026, up from 59 funds three months earlier.
Conclusion
Amer Sports, Inc. (NYSE:AS) has shown that Arc’teryx and Salomon are not a one-region or one-channel phenomenon. Direct demand, store expansion, and higher margins support the view that premium growth can continue.
Still, Amer Sports, Inc. (NYSE:AS) likely needs more than meeting its raised targets to produce a positive stock reaction. The operating pace looks sustainable, but after expectations rose sharply, another guidance increase may be the clearest evidence that the brands can sustain exceptional growth.
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Disclosure: None. This article is originally published at Insider Monkey.
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