Amer Sports releases Q1 2024 fiscal year performance with a 44% increase in net profit

Recently, Anta Group's Amer Sports released its first-quarter financial report for the 2024 fiscal year, stating that it achieved a 13% increase in revenue, totaling $1.2 billion USD (a 14% increase based on fixed exchange rates), with adjusted net profit increasing by 44% year-on-year to $39 million USD.

Specifically, the Asia-Pacific market has become the core growth area for Amer Sports. In this regard, revenue from the Chinese market increased by 51% year-on-year, while the Asia-Pacific region (excluding the Chinese market) saw a 34% year-on-year increase. However, the Europe, Middle East, and Africa region (EMEA) showed lukewarm growth, increasing by only 1%, while revenue in the Americas remained flat.

Breaking down the business segments, in the first quarter, revenue from Amer Sports' apparel business increased by 44% year-on-year to $510 million USD; revenue from outdoor products increased by 6% to $400 million USD; and revenue from racket and ball sports business decreased by 14% to $273 million USD.

The high growth rate in the apparel business is mainly attributed to the strong performance of the brand ARC'TERYX. Data shows that in the first quarter of this year, Amer Sports achieved widespread growth in global markets, with revenue from North America, EMEA, and the Chinese market reaching $410 million USD, $359 million USD, and $310 million USD respectively. Additionally, in the first quarter, the apparel business opened a net of 19 directly operated stores year-on-year. Among them, ARC'TERYX's directly operated stores reached 146 by the end of the first quarter, a 12% year-on-year increase, adding 16 stores net.

Andrew Page, the CFO of Amer, believes that "the rapid growth of the high-profit ARC'TERYX series is enhancing the profitability of Amer Group." The revenue growth of Amer Sports also benefited from the transformation of its channels. According to the financial report, the increase in revenue from Amer Sports mainly came from the transformation of its DTC business, which increased by 41% year-on-year to $489 million USD, accounting for over 40% of total revenue. Meanwhile, DTC business in various regional markets of Amer Sports achieved double-digit growth in the first quarter, while corresponding wholesale channel revenue declined by 1%.

James Zheng, CEO of Amer, believes that ARC'TERYX and Salomon brands have a unique position in the high-end outdoor market in China, which is booming. Revenue and profits both exceeded expectations in the first quarter of this year. In addition, Amer Group began transitioning to a brand-direct sales business model four years ago, which continues to drive profit growth, with the group expected to achieve another record year.

Data shows that after being acquired by Anta Group and others in 2019, Amer Sports' revenue for 2020-2023 was $2.446 billion USD, $3.067 billion USD, $3.549 billion USD, and $4.368 billion USD respectively; revenue growth from 2021 to 2023 was 25.39%, 15.72%, and 23% respectively. Meanwhile, Amer Sports narrowed its losses to $253 million USD in 2023.

In February of this year, Amer Sports was independently listed on the New York Stock Exchange. For Anta Group, this marks a crucial step towards internationalization. Currently, although brands under Amer Sports have achieved significant growth domestically, there has been no significant improvement in growth trends in the two major international sports equipment markets in the Americas and Europe. Anta Group still needs to show new possibilities in its international operations.