HELSINKI - Amer Sports Inc. (NYSE: AS), a global sports and outdoor brand conglomerate, announced a year of strong financial performance for the fiscal year 2023, with revenues and net income at the upper end of preliminary estimates. The company, which completed its initial public offering (IPO) on the New York Stock Exchange and a significant debt refinancing in February 2024, highlighted the continued momentum of its brand portfolio, particularly its flagship brand, Arc'teryx.
For the fourth quarter of 2023, Amer Sports reported a revenue increase of 10% to $1.315 billion compared to the same period in the previous year. This growth was led by a 45% increase in Greater China and a 22% rise in the Asia Pacific region. The company's direct-to-consumer (DTC) channel saw a 37% expansion, driven by technical apparel in the Americas and Greater China, both in-store and online. However, wholesale revenues decreased by 4%, attributed to supply chain disruptions and high retail inventory levels.
The full-year revenue for 2023 surged by 23% to $4.368 billion, with a notable 61% growth in Greater China. Gross margin for the year improved to 52.1% from 49.7% in 2022. The company's operating profit for 2023 was $303 million, a substantial increase from $51 million the previous year. Despite these gains, Amer Sports reported a net loss of $209 million for the year, which was an improvement over the $253 million loss in 2022.
Amer Sports' CEO, James Zheng, expressed confidence in the company's position to deliver another strong year of profitable growth, emphasizing the success in the premium sports and outdoor market segment. CFO Andrew Page noted the financial benefits of the company's transformation, pointing out the expansion of revenue and EBITDA margin in 2023.
Looking ahead, Amer Sports anticipates continued growth in 2024, with a focus on strengthening the balance sheet and deleveraging the business while investing in key growth drivers. The company expects a reported revenue growth of 6-8% for the first quarter ending March 31, 2024, and mid-teens growth for the full year.
The information in this article is based on a press release statement from Amer Sports Inc. and has not been independently verified. The company's future performance may differ materially from these statements due to various factors, including market and operating conditions, customer demand, and other risks described in their SEC filings.
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