Amer Sports Inc.

Strong Q1 performance + broad momentum (good): Amer Sports Group delivered +32% reported sales growth (+26% ex FX) in Q1 FY2026 and +160 bps adjusted operating margin expansion (from 15.8% → 17.4%). Growth was broad-based across brands/regions/channels, led by outdoor performance and technical apparel. - DTC acceleration: DTC grew +45% and represented ~50% of group revenue. - Wholesale up too: Wholesale grew +21% (led by Salomon). - Regional: Asia Pacific +53%, China +45%, EMEA +27%, Americas +18%.

Brand/segment highlights driving expectations (good): - Arc’teryx (technical apparel): Revenue +33% to $885m, driven by 41% D2C growth and 19% omni-comp. Management emphasized continued strength in North America and accelerating women’s momentum (including redesigning core “ABCD” models “for her”). Arc’teryx expects 30–35 net new stores in 2026 (store growth weighted toward H2/Q4 in China). Technical adjusted operating margin expanded to 26.4% (+250 bps). - Salomon (outdoor performance / softgoods): Revenue +42% to $714m; DTC +57% with 29% omni-comp. Salomon opened 9 net new shops in Greater China (total 302 doors at quarter-end). Management sees acceleration in North America via rising brand awareness + new wholesale rollout (e.g., expansion into Foot Locker and JD Sports initially with limited doors). - Wilson (ball & racquet / Tennis 360): Revenue +13% to $347m, with strong Softgoods and Tennis 360 momentum; equipment franchise remains solid despite market/weather conditions.

2026 guidance raised meaningfully (surprising/upside): Management is raising FY2026 sales, margin, and EPS guidance due to continued momentum (especially Arc’teryx and Salomon softgoods). - Revenue growth guidance: raised from 16% to 18% → 20% to 22%. - Gross margin guidance: raised to ~59%–59.5%. - EPS guidance: $1.18–$1.23 (vs prior $1.10–$1.15), assuming 586m diluted shares. - Segment growth targets (raised): Technical apparel ~20%–22% to 22%–24%; Outdoor performance ~18%–20% to 22%–24%; Ball & Racquet ~7%–9% to 10%–12%. - Capex: still expected ~$400m (retail + IT). - Q2 FY2026 outlook: reported revenue +22% to +24% (includes ~200–250 bps FX tailwind). Adjusted operating margin guidance ~6%–7%; adjusted EPS $0.08–$0.10.