Salomon Names New CEO as Parent Amer Sports Raises 2024 Guidance
The public Finnish company, which also owns the Arc’Teryx, Wilson, Peak Performance and Atomic brands, reported a 17 percent increase in sales in Q3 to $1.35 billion. Net income increased 257 percent to $56 million, or 11 cents diluted earnings per share. Adjusted net income increased 651 percent to $71 million, or 14 cents diluted earnings per share. Gross margin increased 420 basis points to 55.2 percent.
The outdoor performance segment, which includes the company’s Salomon brand, saw revenues grow 8 percent to $534 million in Q3. The brand announced that it has elevated chief product officer Guillaume Meyzenq to the role of president and CEO of Salomon, effective Jan 1, 2025. He replaces Franco Fogliato, who stepped down from the role in April for personal reasons after about three years at the helm of the brand.
Amer posted quarterly gains in its other brand segments as well. Revenues for technical apparel, which includes Arc’teryx and Peak Performance, were up 34 percent year-over-year to $520 million. And the Ball & Racquet category, which includes the Wilson brand, grew 11 percent to $300 million.
Amer CEO James Zheng said in a statement that company saw growth across all brands and regions in Q3.
“Led by Arc’teryx, our unique portfolio of premium technical brands continues to create white space and take market share in sports and outdoor markets around the world,” Zheng said. “We are executing against our largest growth opportunities in Arc’teryx and Salomon footwear, while our market-leading Ball & Racquet franchise experienced a growth acceleration.”
Amer also announced that chief operating officer Michael Hauge Sørensen would step down from his role and return his former role as an advisor to the board of directors.
Given the strong results, Amer Sports raised its outlook for fiscal year 2024 and now expects revenues to grow between 16 and 17 percent for the year. Fully diluted EPS is expected in the range of 43 cents to 45 cents. Gross margin is projected to be between 55.3 percent and 55.5 percent. Revenues for the technical apparel category are expected to grow 34 percent. Outdoor performance revenue is projected to grow eight percent and ball and racquet revenues are projected to grow four percent.
“As we begin to look beyond this year, we are also confident in our initial 2025 outlook and expect to deliver results consistent with our long-term financial algorithm of low-double-digit to mid-teens annual revenue growth and 30-70+ bps of annual adjusted operating margin expansion driven by gross margin expansion,” Amer chief financial officer Andrew Page said in a statement.