Q1 2026 Growth Accelerates with Margin Improvement; Full-Year Guidance Raised

Overview

Nomura published a report on May 19 analyzing Amer Sports’ Q1 2026 results. The company delivered a dual beat on both revenue and profit and subsequently raised its full-year FY26 guidance. This continues Amer Sports’ trend of accelerating growth over recent quarters, driven primarily by strong performance in Outdoor Performance and the Salomon brand. The report affirms the effectiveness of the company’s multi-brand growth strategy. Nomura maintains its Buy rating and raises the target price.

Core views

Amer Sports’ Q1 2026 financial performance comprehensively exceeded market expectations. On the top line, Q1 2026 revenue reached USD1.95bn, up 26% YoY (on a constant-currency basis), approximately 6% above the Bloomberg consensus of USD1.84bn. Technical Apparel segment revenue grew 33% YoY (same-store sales growth of 19% YoY), while Outdoor Performance segment revenue surged 42% YoY (same-store sales accelerated to 29% YoY, a notable pickup from Q3–Q4 2025). These two segments have become the company’s core growth engines. On profitability, Q1 2026 adjusted operating profit rose 46% YoY to USD339mn, far exceeding the consensus expectation of USD267mn. Encouragingly, gross margins in both major segments improved significantly—Technical Apparel’s operating margin increased by 2.5 percentage points YoY to 26.4%, and Outdoor Performance’s operating margin rose by 4.8 percentage points YoY to 20.4%. This demonstrates that the company is not only scaling but also enhancing profit efficiency. At the brand level, Salomon has proven to be another robust growth driver following Arc’teryx. Since Q1 2025, Salomon has shown strong momentum, particularly in its sneaker and apparel lines. The company plans to further optimize Salomon’s product mix, targeting footwear and apparel to represent approximately 75% of FY26E sales. Additionally, Wilson is expected to become a significant growth contributor in the next phase by shifting focus toward tennis-related apparel (rather than traditional racquets and equipment). Based on the strong Q1 2026 performance, management raised its FY26 full-year guidance. The company now expects FY26E revenue growth of 20–22% YoY (previously 16–18%) and an operating margin of 13.4–13.7% (previously 13.1–13.3%). This reflects greater confidence in the company’s full-year growth trajectory and validates the firm’s confidence in its multi-brand parallel growth strategy.

Analysis framework

The firm’s analysis centers on three main themes: brand momentum, segment-level growth, and profitability improvement. First, at the brand level, the firm evaluates sales growth, product mix optimization, and market penetration potential across brands (Arc’teryx, Salomon, Wilson, etc.) to assess the sustainability of the multi-brand matrix. Second, at the segment level, the firm tracks revenue growth, same-store sales performance, and gross margin trends across the three segments—Technical Apparel, Outdoor Performance, and Ball & Racquet Sports—to evaluate business health and profit trajectory. Third, on the profit side, the firm monitors the growth rates of adjusted operating profit and EBITDA relative to revenue growth to assess operating leverage. Finally, the firm validates the credibility and sustainability of accelerated growth by comparing the revised guidance against prior guidance. For valuation, the firm employs a Sum-of-the-Parts (SOTP) approach, assigning target F12M EV/EBITDA multiples of 15x, 19x, and 14x to Technical Apparel, Outdoor Performance, and Ball & Racquet Sports, respectively, to derive a consolidated target price. This methodology appropriately accounts for differences in business characteristics and growth stages across segments.

Methodology notes

• Valuation MethodologySOTP Segment Valuation

  Value each business segment separately and sum to derive the overall target price

  The SOTP method divides the company into segments, assigns appropriate EV/EBITDA multiples to each, values them individually, and sums the results. This provides a more accurate reflection of the true value of multi-segment companies, especially when segments are at different growth stages.

• Company Fundamentals & Financial FrameworkROIC–WACC spread

  The company enhances segment gross margins, widening the gap between profit growth and revenue growth, demonstrating operating leverage

  When revenue growth is fixed, margin expansion accelerates profit growth, indicating improved operational efficiency—a key metric for assessing earnings quality.

• Industry/Market Analysis FrameworkPenetration S-curve

  New categories like Salomon sneakers/apparel are in rapid penetration phase with accelerating growth; Wilson enters a new growth curve through category shift

  Sales growth of new products or categories often follows an S-curve: slow initially, accelerating in the middle, and stabilizing later. Identifying the stage helps assess growth sustainability.

• Competitive & Strategic FrameworkMoat / competitive advantage

  Each brand in the company’s multi-brand portfolio has a differentiated positioning (premium outdoor, sportswear, etc.), creating complementary competitive advantages

  A multi-brand strategy covers diverse consumer groups and usage scenarios, reduces reliance on any single brand, and builds a hard-to-replicate ecosystem advantage.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• Amer Sports Inc (AS.US)

  Report Subject

  Strengths

  Multi-brand portfolio establishes differentiated competitive advantages; strong momentum from Arc’teryx and Salomon; Wilson’s strategic pivot to high-growth apparel categories; significant margin improvement; high credibility in raised management guidance

  Weaknesses

  Uncertainty around China market performance; inventory management risks; need to monitor reliance on individual brands for overall results

  Comparison

  Compared to other multi-brand outdoor/sportswear companies (e.g., VF Corporation), Amer Sports’ brands are younger and exhibit stronger growth momentum

  Risks

  China operations underperforming expectations; inventory buildup; DTC expansion falling short of targets

Key data

• Q1 2026 Total RevenueUSD1.95bnUp 26% YoY (constant currency), above Bloomberg consensus of USD1.84bn
• Technical Apparel Revenue Growth33% YoYSame-store sales growth of 19% YoY, maintaining solid momentum
• Outdoor Performance Revenue Growth42% YoYSame-store sales growth of 29% YoY, accelerating from Q3–Q4 2025; driven by strong Salomon sneaker/apparel performance
• Q1 2026 Adjusted Operating ProfitUSD339mnUp 46% YoY, well above consensus of USD267mn
• Technical Apparel Operating Margin26.4%Up 2.5 percentage points YoY
• Outdoor Performance Operating Margin20.4%Up 4.8 percentage points YoY; temporary margin dip in Q4 2025 was indeed necessary for Salomon’s long-term growth
• FY26E Revenue Growth Guidance (Revised)20–22% YoYPreviously 16–18%; raised by 4 percentage points
• FY26E Operating Margin Guidance (Revised)13.4–13.7%Previously 13.1–13.3%; raised by 0.3–0.4 percentage points
• Current Trading Valuation13.0x F12M Adjusted EV/EBITDA, 26.2x FY26F P/E
• Target PriceUSD49.30Raised from USD47.90, implying 16.3x F12M EV/EBITDA and 49% upside

Impact & implications

Amer Sports’ Q1 2026 acceleration and raised guidance indicate that its multi-brand growth strategy is rapidly translating into results. For investors, this suggests the company has moved past its initial integration phase and entered a stage of brand synergy and profit realization. In particular, the continued unlocking of growth potential from Salomon and Wilson provides multiple drivers for medium-term growth. From a valuation perspective, despite the recent share price appreciation, the firm believes the company’s growth outlook justifies a higher valuation—evidenced by the 49% target price increase, reflecting strong confidence in accelerating growth. Moreover, margin improvements (especially in Outdoor Performance) signal enhanced operational efficiency, which should support higher earnings quality in coming years. However, China market performance and inventory management remain key factors to monitor going forward.

Risks

• Underperformance in China operations could drag down overall revenue growth
• Higher-than-expected inventory levels may compress margins and constrain growth
• DTC channel expansion falling short of expectations could impede brand strategy execution and margin improvement

What to watch

• Whether Salomon and Wilson can sustain same-store sales growth above 42% in Q2 2026 and beyond
• Continuation of margin improvement trends across segments, especially whether Outdoor Performance can maintain >20% operating margins
• Sales performance and growth contribution from the China market
• Progress of DTC channel expansion and its impact on overall gross margin