Fashion
Finland’s Amer Sports returns back to profit; Q2 revenue rises 23%
The gross margin improved by 270 basis points (bps) to 58.5 per cent, with adjusted gross margin at 58.7 per cent. The net income improved from a loss of $4 million to a profit of $18 million, translating to diluted EPS of $0.03, while adjusted net income rose 46 per cent to $36 million, or $0.06 per share.
Amer Sports has posted strong Q2 2025 results with revenue up 23 per cent to $1.24 billion and net income at $18 million versus a loss last year.
Technical Apparel and Outdoor Performance drove growth, boosting margins.
Full-year revenue is forecast to rise 20–21 per cent, with strong segment outlooks.
Wilson CEO Joe Dudy will step down, with CFO Andrew Page appointed interim CEO.
Selling, general and administrative (SG&A) expenses increased 23 per cent to $698 million, while adjusted SG&A rose 27 per cent to $677 million. Operating profit climbed 614 per cent to $44 million, while adjusted operating profit increased 130 per cent to $67 million, supported by $19 million in government grants, Amer Sports said in a press release.
The operating margin expanded 430 bps to 3.5 per cent, with adjusted operating margin up 260 bps to 5.5 per cent. By segment, adjusted operating margin stood at 13.9 per cent for Technical Apparel, and 5.1 per cent for Outdoor Performance.
“Amer Sports’ strong momentum continued in the second quarter, as our unique portfolio of premium technical brands continues to create white space and take share in sports and outdoor markets around the world,” said James Zheng, CEO at Amer Sports. “We remain confident in our ability to manage through higher tariffs and other near-term macro uncertainties, while also ensuring that we develop each of our unique brands for high quality, long duration growth. The recent Salomon footwear acceleration, Arc’teryx’s continued momentum, and steady results from our equipment franchises position us well for another strong performance in 2025 and beyond.”
For full-year 2025, Amer Sports expects adjusted revenue growth of 20–21 per cent YoY, supported by a 100-bps foreign exchange (FX) benefit, with gross margin around 57.5 per cent and operating margin between 11.8–12.2 per cent. Adjusted EPS is projected in the range of $0.77–0.82, based on 561 million shares. Technical Apparel and Outdoor Performance are both forecast to deliver revenue growth of 22–25 per cent, with segment margins of 21 per cent and 11–11.5 per cent respectively.
For the third quarter (Q3) of 2025, the company anticipates revenue growth of around 20 per cent, including a 150-bps FX tailwind. Gross margin is projected at 56.5 per cent and operating margin between 12–13 per cent. Net finance costs are expected at $30–35 million, with an effective tax rate of 28–30 per cent. Adjusted diluted EPS is forecast in the range of $0.2–0.22.
“The inflection of Salomon footwear adds a strong second leg of growth to Arc’teryx’s already exceptional sales and margin trajectory, significantly elevating the long-term value creation potential of our portfolio of premium sports and outdoor brands,” said Andrew Page, CFO at Amer Sports.
The company stated that Wilson President and CEO Joe Dudy will step down on August 31 to pursue new opportunities but remain an advisor until March 2026. CFO Andrew Page has been named interim President and CEO while retaining his Amer Sports role and leading the Ball & Racquet segment.
Fibre2Fashion News Desk (SG)
Wholesale revenue dropped 12.8 per cent on a currency-adjusted basis to €4.9 billion, while direct-to-consumer (DTC) sales increased 3.4 per cent, lifting the DTC share to 32.4 per cent from 28.9 per cent.
Regionally, sales fell 6.9 per cent in Europe, Middle East and Africa (EMEA), 7.4 per cent in Asia-Pacific and 10 per cent in the Americas, with North America driving much of the decline.
Puma has reported sales of €7.3 billion (~$8.61 billion) in FY25, with currency-adjusted revenue down 8.1 per cent amid strategic reset actions.
Wholesale declined while DTC share increased.
Margins contracted and EBIT turned negative, leading to a net loss.
Q4 saw sharper declines across regions and categories.
Puma expects further sales softness and negative EBIT in FY26.
By product segment, footwear sales decreased 7.1 per cent, apparel declined 9.7 per cent and accessories fell 8.5 per cent, although selective growth was observed in running, training and premium sport style lines, Puma said in a press release.
Profitability weakened significantly during the year. Gross margin contracted 260 basis points to 45.0 per cent, impacted by promotional activity, inventory reserves, unfavourable mix and currency effects. Adjusted EBIT turned negative at €165.6 million, while reported EBIT declined to -€357.2 million after €191.6 million in one-off costs related mainly to the cost efficiency programme and goodwill impairments.
Loss from continuing operations widened to -€643.6 million, translating to earnings per share of -€4.37 versus €1.88 in the prior year.
From a balance sheet perspective, inventories rose 2.3 per cent to €2.06 billion as inventory takebacks from wholesale partners supported distribution clean-up. Working capital increased 20.2 per cent, while trade receivables and payables declined sharply in line with reduced sales and purchasing activity. Puma ended the year with additional financing capacity, including €1,202.2 million in unutilised credit lines.
Fourth quarter (Q4) performance reflected the peak impact of the strategic reset. Currency-adjusted sales declined 20.7 per cent to €1,564.9 million, with reported revenue down 27.2 per cent due to currency headwinds. The decline was driven by deliberate reductions in wholesale exposure, inventory clearance actions and lower promotional intensity.
Wholesale sales fell 27.7 per cent in Q4, while DTC revenue decreased 8.0 per cent, although DTC share increased to 41.1 per cent from 35.5 per cent. Regionally, sales dropped 12.6 per cent in Asia-Pacific, 22.2 per cent in the Americas and 24.3 per cent in EMEA.
Across product divisions, footwear sales declined 25.4 per cent, apparel fell 13.7 per cent and accessories dropped 18.2 per cent, with selective resilience in training and performance running categories.
Profitability deteriorated sharply. Gross margin declined to 40.2 per cent from 47.7 per cent due to promotions, inventory provisions and currency effects. Adjusted EBIT fell to -€228.8 million, while reported EBIT reached -€307.7 million following one-off costs linked to restructuring and impairment charges. The quarter ended with a loss from continuing operations of -€335 million.
Arthur Hoeld, CEO of Puma, said: “2025 was a reset year for us. We want to establish Puma as a top 3 sports brand globally, return to above-industry growth and generate healthy profits in the medium term. It is crucial to make the Puma brand less commercial and ensure we once again excite our consumers with attractive products, compelling storytelling and distribution in the right channels. I am satisfied with the progress we have made so far. We cleaned up most of our distribution by reducing promotions in our own channels and cutting our exposure to those wholesale channels that damage our brand’s desirability. To better position our product icons and our performance offering and tell more engaging product stories, we created the right structures inside our company. We also addressed operational inefficiencies and further optimised our cost base.”
Looking ahead, Puma expects currency-adjusted sales in fiscal 2026 to decline in the low- to mid-single-digit percentage range, with EBIT projected between -€50 million and -€150 million. Capital expenditure of around €200 million is planned as the company continues investments in brand repositioning and digital capabilities, added the release.
Fibre2Fashion News Desk (SG)
Nominal GDP, or GDP at current prices, is estimated to grow at 8.6 per cent to reach ₹345.47 trillion in FY26 against ₹318.07 trillion in 2024-25.
India’s real GDP is estimated to grow at 7.6 per cent to ₹322.58 trillion (~$3.54 billion) in FY26 compared to the first revised GDP estimate of ₹299.89 trillion for FY25 (7.1 per cent growth).
It released the new series of annual and quarterly national accounts estimates with FY23 base.
Real GVA is projected to grow at 7.7 per cent to reach ₹294.40 trillion in FY26 against ₹273.36 trillion in FY25.
Real gross value added (GVA) is projected to grow at 7.7 per cent to reach ₹294.40 trillion in FY26 against ₹273.36 trillion in FY25 (a 7.3-per cent growth rate).
Nominal GVA is estimated to grow at 8.7 per cent to hit ₹313.61 trillion during FY26, against ₹288.54 lakh crore in 2024-25.
Robust economic performance in FY26 is primarily on account of robust real growth observed in the second quarter (8.4 per cent) and third quarter (7.8 per cent).
The manufacturing sector has been the major driver of resilient performance of the economy the consecutive three fiscals after rebasing, a release from the ministry said.
Both private final consumption expenditure and grossed fixed capital formation exhibited more than 7-per cent growth rate in FY26.
Fibre2Fashion News Desk (DS)
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