Why Amer Sports Stock Marked Today

Many investors may not know the name America Sports (THAT 9.64%)but they probably know the company’s famous brands. Amer Sports owns iconic sports and outdoor brands, including Wilson racquets and soccer balls, Atomic and Salomon ski equipment, and Louisville Slugger baseball bats.

The company may become a household name if it maintains the performance it announced in its second quarter report it released today. The strong financial performance prompted the company to upgrade full-year 2024 guidance, and investors sent shares up as much as 15.5% in response. As of 2:10 PM ET, the stock was still up 9.9%. Amer Sports shares have now gained about 24% in the past month alone.

Raising the financial bar

Investors may have anticipated a good quarter, which led to the recent rally in Amer Sports shares. The company did not disappoint as it updated its 2024 full-year guidance for the second time this year. Momentum in the business is led by its technical apparel brands. Revenue from that segment grew 45% in 2023. It’s on track to overtake the outdoor performance segment as the company’s largest in 2024.

Management now looks to technical apparel — led by its flagship Arc’teryx brand — to increase revenues by over 30% this year. This is the second boost it has given to the estimate, as it originally projected growth of around 20% for 2024.

The company also raised its full-year earnings per share guidance for the year. After two consecutive years of negative net income, Amer Sports now expects an average point of $0.42 per share for the year. With several of its brands performing well, investors are looking to put past losses in the rear-view mirror and are plunging into Amer Sports today.