# Amer Sports (AS)

Sector: Sporting goods & outdoor apparel

| Field | Value |
|---|---|
| Price | $29.94 |
| Fair value (Analysts) | $46.00 |
| Discount to fair value | 34.9% |
| Fair value uncertainty (Analysts) | High |
| Economic moat (Analysts) | Narrow |
| LSEG analyst rating (1 strong buy to 5 strong sell) | 1.76 |
| Data as of | 2026-10-16 |
| Next earnings | 2026-11-18 (estimate) |

## In short

The market doubts that Amer Sports can keep its growth and margins with a large China business, and results in line with its guidance through early 2027 can close the gap.

## Themes and gap

- Themes: China and geopolitics (china-geopolitics), Tariffs and trade (trade-tariffs), Weak consumer (weak-consumer)
- Gap type: Can close (closable)
- Why: The Q3 2026 report and the 2027 guidance in early 2027 show whether growth and margins hold without one-time tariff refunds.

## About

Amer Sports owns premium sports and outdoor brands, including Arc'teryx, Salomon, Wilson, Peak Performance and Atomic. It reports three segments. Technical Apparel holds Arc'teryx and Peak Performance. Outdoor Performance holds Salomon, Atomic and Armada, with footwear, apparel and winter sports equipment. Ball & Racquet Sports holds Wilson and baseball brands such as Louisville Slugger. Amer Sports sells through its own stores and websites and through wholesale partners in more than 100 countries. Greater China gave about one third of revenue in the first half of 2026. Revenue was $6.6 billion in 2025. ANTA Sports is a related party, and the two companies buy and sell goods and services with each other.

## Thesis

The market doubts that Amer Sports can keep its growth and margins after 2026. Revenue grew 32% in each of the first two quarters of 2026, but investors see several reasons for caution. Greater China gave about one third of first-half revenue, so the company depends on Chinese consumers and on relations between China and the United States. The Q2 2026 margins included a one-time benefit of 390 basis points from net tariff refunds. The company also spends heavily to grow: SG&A rose 30% in Q2 2026. Large holders sell shares; on August 20, 2026, Tencent sold about 15.8 million shares in block trades. For the gap to close, four things must be true. Q3 2026 revenue must grow 20% to 22%, with an adjusted operating margin above 14%, as guided on September 16, 2026. Full-year 2026 results must meet the guidance of about 24% revenue growth and adjusted EPS of $1.27 to $1.30. Greater China must keep growing at double-digit rates. Guidance for 2027 must agree with the five-year plan of low-double-digit to mid-teens revenue growth. The first evidence comes with the Q3 2026 report, estimated for about November 18, 2026, and then the Q4 report with 2027 guidance in early 2027. If these checks pass, the gap can close over the next two to four quarters. The main reason it may not close is a slowdown of consumer demand in China.

## Checkpoints

- Nov 18, 2026 (estimate): Q3 2026 earnings: growth and margin. Status: Pending. Watch: Revenue growth of 20% to 22% with an adjusted operating margin above 14% passes; growth or margin below the September 16 guidance fails.
- Feb 24, 2027 (estimate): Q4 2026 earnings and 2027 guidance. Status: Pending. Watch: 2026 adjusted EPS of $1.27 to $1.30 and 2027 revenue growth guidance of low double digits or more pass; lower guidance fails.

## Balance sheet

- Cash: $720M
- Debt: $147M
- Net cash: $573M
- Interest cover: 11×
- Undrawn credit line: $710M, to February 2029
- Debt due within 12 months: $147M

Amer Sports has net cash after it repaid its secured notes in 2026. On February 6 and March 16, 2026, it redeemed all $800 million of its 6.750% senior secured notes, partly with $862.5 million of gross proceeds from a share offering on March 4, 2026. At June 30, 2026, cash and cash equivalents were $720 million, and the only borrowings were $147 million of short-term bank loans in China. The company reported net cash of $573 million. Lease liabilities of $954 million are left out of debt. The $710 million revolving credit facility was not used; it is a five-year facility signed on February 16, 2024. Interest cover is operating profit divided by interest expense for the first half of 2026. Working capital rises in the second and third quarters, because inventory builds for the peak season from August to December.

As of 2026-06-30.

Sources:

- https://www.sec.gov/Archives/edgar/data/1988894/000198889426000083/pressreleaseq22026.htm
- https://www.sec.gov/Archives/edgar/data/1988894/000198889426000085/as-2026q2xexx991.htm
- https://www.sec.gov/Archives/edgar/data/1988894/000198889426000085/as-20260630_d2.htm

## Recent events

- 2026-09-17: Amer Sports held an investor day in Annecy, France, with a focus on Salomon. It kept its five-year plan of low-double-digit to mid-teens annual revenue growth and 30 to 70 or more basis points of adjusted operating margin growth a year, with 2026 as the base year.
- 2026-09-16: Amer Sports raised its Q3 2026 guidance. It now expects revenue growth of 20% to 22%, up from 18% to 20%, and an adjusted operating margin slightly above the top of the earlier 13.5% to 14% range.
- 2026-08-20: Tencent sold about 15.8 million Amer Sports shares in block trades at an average price of $33.86. After the sale, Tencent holds about 15.8 million shares, or about 2.7% of the shares.
- 2026-08-18: Amer Sports reported Q2 2026 results. Revenue grew 32% to $1,633 million, with Technical Apparel up 32%, Outdoor Performance up 37% and Ball & Racquet Sports up 24%. Gross margin was 65.6%, including 390 basis points from net tariff refunds. Adjusted EPS was $0.22. The company raised its 2026 guidance to about 24% revenue growth and adjusted EPS of $1.27 to $1.30.
- 2026-05-19: Amer Sports reported Q1 2026 results. Revenue grew 32% to about $1.95 billion. Greater China revenue grew 44.5% to $645 million, and net income was $165 million.

## Risks

- High: Greater China gave $1.20 billion of $3.58 billion of revenue in the first half of 2026. Weaker consumer demand in China, or political tension between China and the United States, can cut growth fast.
- Medium: Tariffs change often. The 2026 guidance assumes that the most recent Section 301 tariff rates stay in place. Q2 2026 margins included a one-time benefit of 390 basis points from net tariff refunds, which will not repeat.
- Medium: The company spends heavily on its own stores, marketing and new markets. SG&A rose 30% in Q2 2026. If revenue growth slows, these costs can lower the operating margin.
- Medium: ANTA Sports is a related party, and large holders can sell shares. Tencent sold about 15.8 million shares on August 20, 2026. Such sales can weigh on the share price.

## Links

- Page: https://picks.kamadorueda.com/company/AS/
- History of changes: https://picks.kamadorueda.com/company/AS/history/
- JSON with full history: https://picks.kamadorueda.com/data/company/AS.json

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