Amer Sports, Inc. (NYSE:AS) reported fourth-quarter results on Tuesday that fell short of profit expectations, even as revenue exceeded forecasts, with increased investment spending weighing on margins.
The company’s shares declined 7.38% in premarket trading following the announcement.
Adjusted earnings per share came in at $0.31 for the quarter, below analyst estimates of $0.41. Revenue for the period ended December 31 rose 28% year-on-year to $2.1 billion — or 26% growth on a constant currency basis — surpassing market projections and up from $1.64 billion recorded in the same quarter last year.
Despite strong top-line growth, adjusted operating margin contracted by 110 basis points to 12.5%, reflecting higher SG&A spending as the company stepped up investments to support expansion initiatives, particularly within its Salomon Softgoods business.
CEO James Zheng said, “Fourth quarter was a great finish to a breakout year for Amer Sports led by our flagship Arc’teryx brand and rising star Salomon, which surpassed the $2 billion sales mark.”
For the first quarter of 2026, Amer Sports guided adjusted EPS in a range of $0.28 to $0.30, with the midpoint of $0.29 below the analyst consensus estimate of $0.33. The company expects revenue growth of 22% to 24% and an adjusted operating margin between 14.0% and 14.5% for the quarter.
Looking at the full year 2026, Amer Sports projected adjusted EPS of $1.10 to $1.15, with the midpoint of $1.13 also trailing the consensus estimate of $1.17. Full-year revenue is expected to grow between 16% and 18%, alongside an adjusted operating margin of 13.1% to 13.3%.
By segment, Technical Apparel revenue increased 34% to $1.0 billion during the quarter, Outdoor Performance sales rose 29% to $764 million, and Ball & Racquet Sports revenue grew 14% to $337 million. All four geographic regions delivered double-digit revenue growth during the period.