UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16
OF THE SECURITIES EXCHANGE ACT OF 1934
For the month of May 2024
Commission File Number 001-41943
Amer Sports, Inc.
(Translation of registrant’s name into
English)
Cricket Square, Hutchins Drive,
P.O. Box 2681
Grand Cayman, KY1-1111
Cayman Islands
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F:
FORM 20-F x
FORM 40-F ¨
EXPLANATORY NOTE
On May 21, 2024, Amer Sports, Inc. (the “Company”)
released information regarding its financial results for the three months ended March 31, 2024. A copy of the Company’s press
release is furnished hereto as Exhibit 99.1.
The information contained in this Report on Form 6-K (including
the press release furnished as Exhibit 99.1) shall not be deemed “filed” for the purposes of Section 18 of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that
section, nor shall it be deemed incorporated by reference into any of the Company’s filing under the Securities Act of 1933,
as amended, or the Exchange Act, whether made before or after the date hereof, except as shall be expressly set forth by specific
reference in such filing.
EXHIBIT INDEX
The following exhibit is furnished as part of this Report on Form 6-K:
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the undersigned hereunder.
|
Amer Sports, Inc. |
|
|
|
By: |
/s/ Andrew E. Page |
|
Name: |
Andrew E. Page |
|
Title: |
Chief Financial Officer |
Date: May 21, 2024
Exhibit 99.1
AMER
SPORTS REPORTS FIRST QUARTER 2024 FINANCIAL RESULTS, COMPANY UPDATES FULL YEAR GUIDANCE
| · | First
quarter revenue, adjusted operating margin, and adjusted diluted EPS above guidance |
| · | First
quarter revenue increased 13% year-over-year to $1.2 billion led by the Technical Apparel Segment |
| · | Strong
gross margin expansion reflecting mix shift toward highest-margin brands, channels, and regions |
| · | Flagship
Arc’teryx brand continues to generate best-in-class financial performance |
| · | IPO
proceeds used to pay down $1.4 billion of debt; ended 1Q with $1.7 billion of net debt1 |
HELSINKI (May 21, 2024) – Amer Sports Inc. (NYSE: AS) (“Amer
Sports” or the “Company”) today announced its financial results for the first quarter of 2024.
CEO James Zheng commented, “The momentum behind our strong
financial performance has continued through the first quarter of 2024, as we delivered sales and profitability above our guidance. Our
transformation to a brand-direct business model four years ago continues to fuel profitable growth today, and our high-performance technical
products are resonating with consumers globally. We are gaining share in the premium sports and outdoor market and are well positioned
to deliver another great year in 2024.”
CFO Andrew Page added, “The fast growth of our high-margin
Arc’teryx franchise is elevating the growth and profitability profile of Amer Sports. This dynamic allows us to deliver
profitable growth for shareholders while continuing to reinvest in the many opportunities across our unique portfolio
of brands.”
FIRST QUARTER 2024 RESULTS
Revenue
increased 13% to $1.2 billion as compared to the first quarter of 2023 led by a 44% increase in the
Technical Apparel segment. On a constant currency basis, revenue increased 14%. Constant currency revenue is calculated by translating the current period reported
amounts using the actual exchange rates in use during the comparative prior period, in place of the exchange rates in use during the current
period. Technical Apparel growth was driven by Arc’teryx, which is generating double-digit new store growth
while also delivering exceptional omni-comp growth against difficult comparisons from the first quarter of 2023. The brand is generating
broad-based growth across regions, led by Asia Pacific and the Americas, followed by Greater China and Europe, the Middle East and Africa
(“EMEA”).
At the Amer Sports Group
level, DTC expanded 41% with double-digit growth across all regions and wholesale revenues decreased 1% year over
year. Regional growth was led by Greater China which increased 51% and the Asia Pacific region which rose by 34%. EMEA
grew 1% and revenues were flat in the Americas, where growth in the Technical Apparel segment was offset by declines in the
Ball & Racquet and Outdoor Performance segments.
1Net debt is defined
as loans from financial institutions and related parties less cash and cash equivalents
On a reported basis, gross
margin for the first quarter of 2024 was 54.0%. SG&A expense was $534 million, compared to $422 million for
first quarter 2023. Operating profit for the first quarter 2024 was $109 million compared to $130 million for the
first quarter 2023. Net finance cost was $94 million in the first quarter. Net income for the first quarter 2024 was $7 million
compared to $19 million for the first quarter 2023. Diluted earnings per share was $0.01 for the first quarter 2024
compared to $0.05 for the first quarter 2023.
Adjusted
gross profit margin rose 110 basis points to 54.3% compared to 53.2% for the first quarter
2023, primarily driven by favorable segment revenue mix shift towards Technical
Apparel, which is the highest gross margin segment in the Group. Lower logistics costs also drove gross margin expansion, which were
partially offset by higher raw material costs and higher product discounts as compared to prior year.
Adjusted
SG&A expenses as a percentage of revenues increased 420 basis points on slower sales growth and represented
43.7% of revenues for the first quarter 2024. Key areas of expense growth include variable costs related to the higher mix of
DTC sales, as well as key investments to support growth, including IT infrastructure investments and new store openings.
Adjusted operating
margin decreased 240 bps from 13.4% in the first quarter 2023 to 11.0% in the first quarter 2024, above previous guidance of
9.0–10.0%. Adjusted net finance cost was $76 million in the first quarter.
Adjusted
net income for the first quarter 2024 was $39 million, or $0.08 per share on a fully diluted basis compared
to adjusted net income of $27 million, or $0.07 per share on a fully diluted basis in the first quarter of 2023. The effective tax rate on adjusted pretax income was 25% in the first quarter.
Balance
sheet. Year-over-year inventories were up 6%, below the 13% revenue growth for the quarter and in a healthy
position. Net debt was $1.7 billion, and cash and equivalents totaled $337 million at quarter end.
SEGMENT RESULTS
Technical
Apparel. In the first quarter 2024, revenue increased 44% year-over-year to $510 million, driven by growth
in both channels, with DTC up 46%, including 36% omni-comp growth, and wholesale up 40%. On a constant currency
basis, Technical Apparel revenue increased 48%. The overperformance was driven by Arc’teryx, which continues to experience
strong brand momentum across all regions, channels, consumer segments, and product categories. DTC growth was driven by both store
network expansion, with a net increase of 19 new owned retail stores, as well as strong volume growth in existing stores and
e-commerce platforms. Technical Apparel wholesale revenues increased 40% driven primarily by higher volumes as compared to
the prior year. Regionally, growth was led by Asia Pacific, followed by the Americas, Greater China, and EMEA. Technical Apparel
segment adjusted operating profit margin contracted 40 basis points to 23.0% as compared to a very strong margin
comparison in the first quarter of 2023. The contraction was primarily due to foreign currency
exchange losses.
Outdoor
Performance. Revenue increased 6% to $400 million driven by mid-teens growth in Salomon soft goods, which
was led by Asia Pacific and Greater China. This growth was partially offset by Winter Sports Equipment, which was negatively
impacted by warm weather and high inventory levels in the market. On a constant currency basis, Outdoor Performance revenue
increased 6%. DTC continued to outperform the wholesale market with 42% growth, while wholesale was down 3%,
negatively impacted by the challenging environment in the Americas. By geography, Outdoor Performance revenue increased in Greater
China, Asia Pacific, and EMEA, which was offset by a decline in the Americas. Outdoor Performance segment adjusted operating profit
margin contracted 340 basis points to 4.9% due to increased selling, general, and administrative expenses as a result
of an increase in the share of DTC sales, which was partially offset by gross margin improvement from a beneficial channel and
region mix.
Ball &
Racquet Sports revenue decreased 14% to $273 million as Wilson continues to be constrained by challenges in
its core market compared to strong growth and profitability last year when the flow of inventory improved and both retailers and
consumers were buying early to avoid stockouts. On a constant currency basis, Ball & Racquet Sports revenue decreased 14%.
Growth in Wilson Sportswear was more than offset by declines in the other categories. Ball & Racquet segment adjusted
operating profit margin contracted 1,040 basis points compared to the first quarter 2023 to 4.0% in the first quarter 2024. The decrease was
primarily due to the decrease in revenue. Additionally, gross margin was negatively impacted by increased discounts and unfavorable
product mix.
OUTLOOK
CFO Andrew Page said, “Despite facing difficult comparisons
for our wholesale businesses in Q1, we delivered results ahead of our expectations led by Arc’teryx, which gives us increased confidence
in our full year guidance. The continued outperformance of our fastest growing and highest margin franchise allows us to deliver great
business performance and strong returns for shareholders, while reinvesting in our key opportunities. As increased demand materializes,
we are well positioned to service the elevated demand.”
FULL-YEAR 2024
Amer Sports is updating guidance for the year ending December 31,
2024 (all guidance figures reference adjusted amounts):
| · | Reported
revenue growth: Mid-teens % |
| · | Gross
margin: approximately 54.0% |
| · | Operating
margin: 10.5% - 11.0% |
| · | D&A:
approximately $250 million, including approximately $110 million of ROU depreciation |
| · | Net
finance cost: $215 - $225 million, including approximately $30 million of finance costs in the first quarter 2024
that won’t be recurring |
| · | Effective
tax rate: approximately 38% |
| · | Fully
diluted share count: 500 million |
| · | Fully
diluted EPS: toward the high end of the previous guidance range of $0.30 to $0.40,
including a $0.03 - $0.04 negative impact to EPS from non-recurring finance costs in 1Q24 |
| · | Technical
Apparel: >25% revenue growth; segment operating margin slightly above 20% |
| · | Outdoor
Performance: mid-to-high-single-digit revenue growth; segment operating margin high-single
digit %. Note: ENVE contributed approximately $25 million of annual sales to the Outdoor Performance segment. |
| · | Ball &
Racquet: low-to-mid single-digit revenue growth, and low-to-mid single-digit segment
operating margin |
SECOND QUARTER 2024
Amer Sports is providing the following guidance for the second quarter
ending June 30, 2024 (all guidance figures reference adjusted amounts):
| · | Approximately 10%, including the impact of the disposition of ENVE on May 1, 2024 |
| · | Gross
margin: approximately 54.0% |
| · | Operating
margin: approximately 0.0% |
| · | Net
finance cost: $45 - $50 million |
| · | Effective
tax rate: approximately 38% |
| · | Fully
diluted share count: 510 million |
| · | Fully
diluted EPS: $(0.04) to $(0.08) |
Other than with respect to revenue, Amer Sports only provides guidance
on a non-IFRS basis. The Company does not provide a reconciliation of forward-looking non-IFRS measures to the most directly comparable
IFRS measures due to the difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations without
unreasonable efforts. The Company is unable to address the probable significance of the unavailable reconciling items, which could have
a potentially significant impact on its future IFRS financial results. The above outlook reflects the Company’s current and preliminary
estimates of market and operating conditions and customer demand, which are all subject to change. Actual results may differ materially
from these forward-looking statements, including as a result of, among other things, the factors described under “Forward-Looking
Statements” below and in our filings with the SEC.
CONFERENCE CALL INFORMATION
The Company's conference call to review the results for the first
quarter 2024 will be webcast live today, Tuesday, May 21, 2024 at 8:00 a.m. Eastern Time and can be accessed at https://investors.amersports.com.
ABOUT AMER SPORTS
Amer Sports is a global group of iconic sports and outdoor brands,
including Arc’teryx, Salomon, Wilson, Peak Performance, and Atomic. Our brands are known for their detailed craftsmanship, unwavering
authenticity, and premium market positioning. As creators of exceptional apparel, footwear, and equipment, we pride ourselves on cutting-edge
innovation, performance, and designs that allow elite athletes and everyday consumers to perform their best.
With over 11,400 employees globally, Amer Sports’ purpose is
to elevate the world through sport. Our vision is to be the global leader in premium sports and outdoor brands. With corporate offices
in Helsinki, Munich, Kraków, New York, and Shanghai, we have operations in 40+ countries and our products are sold in 100+ countries.
Amer Sports generated $4.4 billion of revenue in 2023. Amer Sports, Inc. shares are listed on the New York Stock Exchange. For more
information, visit www.amersports.com.
NON-IFRS MEASURES
Adjusted gross profit
margin, adjusted SG&A expenses, adjusted operating profit margin, adjusted EBITDA, adjusted net (loss) income, and adjusted
diluted (loss) income per share are financial measures that are not defined under IFRS. Adjusted gross profit margin is calculated
as adjusted gross profit divided by revenue. Adjusted gross profit is calculated as gross profit excluding amortization related to
certain purchase price adjustments (PPA) in connection with the acquisition and delisting of Amer Sports in 2019 and restructuring
expenses. Adjusted SG&A also excludes PPA amortization, as well as adjustments to exclude restructuring expenses, expenses
related to transaction activities, expenses related to certain legal proceedings, and certain share-based payments. Adjusted
operating profit margin is calculated as adjusted operating profit divided by revenue. Adjusted operating profit is calculated as
loss before tax with adjustments to exclude PPA amortization, restructuring expenses, impairment losses on goodwill and intangible
assets, expenses related to transaction activities, expenses related to certain legal proceedings, certain share-based payments,
finance costs, and finance income. Adjusted EBITDA is calculated as EBITDA with adjustments to exclude results from discontinued
operations, restructuring expenses, impairment losses on goodwill and intangible assets, expenses related to transaction activities,
expenses related to certain legal proceedings and share-based payments. Adjusted net (loss) income is calculated as net (loss)
income attributable to equity holders with adjustments to exclude PPA amortization, loss from discontinued operations, restructuring
expenses, impairment losses on goodwill and intangible assets, expenses related to transaction activities, expenses related to
certain legal proceedings, share-based payments and related income tax expense. “Omni comp” is defined as year over year
revenue growth from owned retail stores and e-commerce sites that have been open at least 13 months.
The Company believes that these non IFRS measures, when taken together
with its financial results presented in accordance with IFRS, provide meaningful supplemental information regarding its operating performance
and facilitate internal comparisons of its historical operating performance on a more consistent basis by excluding certain items that
may not be indicative of our business, results of operations or outlook. In particular, adjusted EBITDA and adjusted net income (loss)
are helpful to investors as they are measures used by management in assessing the health of the business and evaluating operating performance,
as well as for internal planning and forecasting purposes. Non-IFRS financial measures however are subject to inherent limitations, may
not be comparable to similarly titled measures used by other companies and should not be considered in isolation or as an alternative
to IFRS measures. The supplemental tables below provide reconciliations of each non-IFRS financial measure presented to its most directly
comparable IFRS financial measure.
FORWARD LOOKING STATEMENTS
This press release includes estimates, projections, statements relating
to the business plans, objectives, and expected operating results of the Company that are “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. In many cases, you can identify forward-looking statements by terms such as “may,”
“will,” “should,” “expects,” “plans,” “anticipates,” “target,”
“outlook,” “believes,” “intends,” “estimates,” “predicts,” “potential”
or the negative of these terms or other comparable terminology. These forward looking statements include, without limitation, guidance
and outlook statements, our long-term targets and algorithm, statements regarding our ability to meet environmental, social and governance
goals, expectations regarding industry trends and the size and growth rates of addressable markets, and statements regarding our business
plan and our growth strategies. These statements are based on management’s current expectations but they involve a number of risks
and uncertainties. Actual results and the timing of events could differ materially from those anticipated in the forward-looking statements
as a result of factors relating to, without limitation: the strength of our brands; changes in market trends and consumer preferences;
intense competition that our products, services and experiences face; harm to our reputation that could adversely impact our ability
to attract and retain consumers and wholesale partners, employees, brand ambassadors, partners, and other stakeholders; reliance on technical
innovation and high-quality products; general economic and business conditions worldwide, including due to inflationary pressures; the
strength of our relationships with and the financial condition of our third-party suppliers, manufacturers, wholesale partners and consumers;
ability to expand our DTC channel, including our expansion and success of our owned retail stores and e-commerce platform; our plans
to innovate, expand our product offerings and successfully implement our growth strategies that may not be successful, and implementation
of these plans that may direct divert our operational, managerial and administrative resources; our international operations, including
any related to political uncertainty and geopolitical tensions; our and our wholesale partners’ ability to accurately forecast
demand for our products and our ability to manage manufacturing decisions; our third party suppliers, manufacturers and other partners,
including their financial stability and our ability to find suitable partners to implement our growth strategy; the cost of raw materials
and our reliance on third-party manufacturers; our distribution system and ability to deliver our brands’ products to our wholesale
partners and consumers; climate change and sustainability or ESG-related matters, or legal, regulatory or market responses thereto; changes
to trade policies, tariffs, import/export regulations, anti-competition regulations and other regulations in the United States, EU, PRC
and other jurisdictions, or our failure to comply with such regulations; ability to obtain, maintain, protect and enforce our intellectual
property rights in our brands, designs, technologies and proprietary information and processes; ability to defend against claims of intellectual
property infringement, misappropriation, dilution or other violations made by third parties against us; security breaches or other disruptions
to our IT systems; changes in government regulation and tax matters; our ability to remediate our material weakness in our internal control
over financial reporting; our relationship with our significant shareholders; other factors that may affect our financial condition,
liquidity and results of operations; and other risks and uncertainties set out in filings made from time to time with the SEC and available
at www.sec.gov, including, without limitation, our reports on Form 20-F and Form 6-K. You are urged to consider these factors
carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking
statements, which are qualified in their entirety by these cautionary statements. The forward-looking statements made herein speak only
as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect
subsequent events or circumstances, except as may be required by law.
FOR ADDITIONAL INFORMATION
Investor Relations:
Omar Saad
Vice President, Finance and Investor Relations
omar.saad@amersports.com
Media:
Anu Sirkiä
Senior Vice President, Communications
anu.sirkia@amersports.com
Source: Amer Sports
CONSOLIDATED
STATEMENT OF INCOME
For the Three Months
Ended March 31, 2024 and 2023
(Unaudited; $ in millions, except per share information)
| |
| Three
Months Ended March 31, | |
| |
2024 | | |
2023 | |
Revenue | |
$ | 1,182.9 | | |
$ | 1,050.3 | |
Cost of goods sold | |
| (544.4 | ) | |
| (495.4 | ) |
Gross profit | |
| 638.5 | | |
| 554.9 | |
Selling, general and administrative expenses | |
| (534.2 | ) | |
| (422.4 | ) |
Impairment losses | |
| (1.3 | ) | |
| (2.8 | ) |
Other operating income | |
| 6.0 | | |
| 0.7 | |
Operating profit | |
| 109.0 | | |
| 130.4 | |
Finance income | |
| 2.7 | | |
| 1.3 | |
Finance cost | |
| (82.3 | ) | |
| (86.1 | ) |
Loss on debt extinguishment | |
| (14.3 | ) | |
| - | |
Net finance cost | |
| (93.9 | ) | |
| (84.8 | ) |
Income before tax | |
| 15.1 | | |
| 45.6 | |
Income tax expense | |
| (8.2 | ) | |
| (26.6 | ) |
Net income | |
$ | 6.9 | | |
$ | 19.0 | |
Income attributable to: | |
| | | |
| | |
Equity holders of the Company | |
$ | 5.1 | | |
$ | 19.0 | |
Non-controlling interests | |
$ | 1.8 | | |
$ | - | |
Earnings per share | |
| | | |
| | |
Basic earnings per share | |
$ | 0.01 | | |
$ | 0.05 | |
Diluted earnings per share | |
$ | 0.01 | | |
$ | 0.05 | |
Weighted-average number of ordinary shares | |
| | | |
| | |
Basic | |
| 463,422,683 | | |
| 384,499,607 | |
Diluted | |
| 466,345,776 | | |
| 384,499,607 | |
CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
As of March 31, 2024
and December 31, 2023
(Unaudited; $ in millions)
| |
| March 31, | | |
| December 31, | |
($ in millions) | |
2024 | | |
2023 | |
ASSETS | |
| | | |
| | |
NON-CURRENT
ASSETS | |
| | | |
| | |
Intangible
assets | |
$ | 2,713.1 | | |
$ | 2,748.7 | |
Goodwill | |
| 2,253.7 | | |
| 2,270.0 | |
Property,
plant and equipment | |
| 450.9 | | |
| 441.9 | |
Right-of-use
assets | |
| 348.1 | | |
| 317.1 | |
Non-current
financial assets | |
| 9.1 | | |
| 9.2 | |
Other
non-current assets | |
| 69.6 | | |
| 73.5 | |
Deferred
tax assets | |
| 160.3 | | |
| 161.7 | |
TOTAL
NON-CURRENT ASSETS | |
| 6,004.8 | | |
| 6,022.1 | |
CURRENT
ASSETS | |
| | | |
| | |
Inventories | |
| 1,100.6 | | |
| 1,099.6 | |
Accounts
receivable, net | |
| 560.4 | | |
| 599.8 | |
Prepaid
expenses and other receivables | |
| 164.7 | | |
| 162.3 | |
Current
tax assets | |
| 6.7 | | |
| 6.6 | |
Cash
and cash equivalents | |
| 337.3 | | |
| 483.4 | |
TOTAL
CURRENT ASSETS | |
| 2,169.7 | | |
| 2,351.7 | |
TOTAL
ASSETS | |
| 8,174.5 | | |
| 8,373.8 | |
SHAREHOLDERS'
EQUITY (DEFICIT) AND LIABILITIES | |
| | | |
| | |
EQUITY
(DEFICIT) | |
| | | |
| | |
Share
capital | |
| 16.9 | | |
| 642.2 | |
Share
premium | |
| 2,133.4 | | |
| - | |
Capital
reserve | |
| 2,789.2 | | |
| 227.2 | |
Cash
flow hedge reserve | |
| 6.6 | | |
| (10.6 | ) |
Accumulated
deficit and other | |
| (925.6 | ) | |
| (1,019.0 | ) |
Equity
(deficit) attributable to equity holders of the parent company | |
| 4,020.5 | | |
| (160.2 | ) |
Non-controlling
interests | |
| 5.2 | | |
| 3.4 | |
TOTAL
EQUITY (DEFICIT) | |
| 4,025.7 | | |
| (156.8 | ) |
LIABILITIES | |
| | | |
| | |
LONG-TERM
LIABILITIES | |
| | | |
| | |
Lease
liabilities | |
| 280.0 | | |
| 250.4 | |
Loans
from financial institutions | |
| 2,021.0 | | |
| 1,863.4 | |
Loans
from related parties | |
| - | | |
| 4,077.0 | |
Defined
benefit pension liabilities | |
| 19.1 | | |
| 23.9 | |
Other
liabilities | |
| 20.6 | | |
| 29.4 | |
Provisions | |
| 5.7 | | |
| 5.5 | |
Long-term
tax liabilities | |
| 31.4 | | |
| 32.1 | |
Deferred
tax liabilities | |
| 664.8 | | |
| 675.0 | |
TOTAL
LONG-TERM LIABILITIES | |
| 3,042.6 | | |
| 6,956.7 | |
CURRENT
LIABILITIES | |
| | | |
| | |
Interest-bearing
liabilities | |
| 6.2 | | |
| 381.0 | |
Lease
liabilities | |
| 93.7 | | |
| 89.4 | |
Accounts
payable | |
| 387.4 | | |
| 426.5 | |
Other
liabilities | |
| 532.8 | | |
| 567.5 | |
Provisions | |
| 28.8 | | |
| 29.9 | |
Current
tax liabilities | |
| 57.3 | | |
| 79.6 | |
TOTAL
CURRENT LIABILITIES | |
| 1,106.2 | | |
| 1,573.9 | |
TOTAL
LIABILITIES | |
| 4,148.8 | | |
| 8,530.6 | |
TOTAL
SHAREHOLDERS' EQUITY (DEFICIT) AND LIABILITIES | |
$ | 8,174.5 | | |
$ | 8,373.8 | |
GEOGRAPHIC
REVENUES
For the Three Months Ended March 31, 2024 and 2023
(Unaudited; $ in millions)
| |
| Three
Months Ended March 31, | |
($ in millions) | |
2024 | | |
2023 | | |
% Change | |
Geographic Revenues | |
| | | |
| | | |
| | |
EMEA | |
$ | 359 | | |
$ | 357 | | |
| 1 | % |
Americas | |
| 410 | | |
| 410 | | |
| (0 | )% |
Greater China (1) | |
| 310 | | |
| 205 | | |
| 51 | % |
Asia Pacific (2) | |
| 104 | | |
| 78 | | |
| 34 | % |
Total | |
$ | 1,183 | | |
$ | 1,050 | | |
| 13 | % |
(1) |
Consists of mainland China, Hong Kong, Macau and Taiwan. |
(2) |
Excludes Greater China. |
CHANNEL
REVENUES
For the Three Months Ended March 31, 2024 and 2023
(Unaudited; $ in millions)
| |
| Three
Months Ended March 31, | |
($ in millions) | |
2024 | | |
2023 | | |
% Change | |
Channel Revenues | |
| | | |
| | | |
| | |
Wholesale | |
$ | 694 | | |
$ | 703 | | |
| (1 | )% |
DTC | |
| 489 | | |
| 347 | | |
| 41 | % |
Total | |
$ | 1,183 | | |
$ | 1,050 | | |
| 13 | % |
SEGMENT
REVENUES
For the Three Months Ended March 31, 2024 and 2023
(Unaudited; $ in millions)
| |
| Three
Months Ended March 31, | |
($
in millions) | |
2024 | | |
2023 | | |
% Change | |
Segment Revenue | |
| | | |
| | | |
| | |
Technical Apparel | |
$ | 510 | | |
$ | 355 | | |
| 44 | % |
Outdoor Performance | |
| 400 | | |
| 377 | | |
| 6 | % |
Ball & Racquet Sports | |
| 273 | | |
| 318 | | |
| (14 | )% |
Total | |
$ | 1,183 | | |
$ | 1,050 | | |
| 13 | % |
SEGMENT
ADJUSTED OPERATING PROFIT
For the Three Months
Ended March 31, 2024 and 2023
(Unaudited; $ in millions)
| |
| Three
Months Ended March 31, | |
($
in millions) | |
2024 | | |
% of Segment Revenues (2) | | |
2023 | | |
% of Segment Revenues (2) | |
Segment Adjusted
Operating Profit | |
| | | |
| | | |
| | | |
| | |
Technical
Apparel | |
$ | 117 | | |
| 23.0 | % | |
$ | 83 | | |
| 23.4 | % |
Outdoor
Performance | |
| 19 | | |
| 4.8 | % | |
| 31 | | |
| 8.2 | % |
Ball
& Racquet Sports | |
| 11 | | |
| 4.0 | % | |
| 46 | | |
| 14.4 | % |
Reconciliation
(1) | |
| (17 | ) | |
| NM | | |
| (19 | ) | |
| NM | |
Total | |
$ | 130 | | |
| 11.0 | % | |
$ | 141 | | |
| 13.5 | % |
| (1) | Includes corporate expenses,
which have not been allocated to the reportable segments. |
| (2) | The operating profit (loss)
for the Reconciliation is not presented as it is not a meaningful metric (NM). |
TECHNICAL
APPAREL DTC OPERATING DATA
For the Three Months Ended March 31, 2024 and 2023
(Unaudited)
| |
| Three Months Ended March 31, |
|
|
| |
($
in millions) | |
2024 | | |
2023 | | |
% Change | |
Store count (1) | |
| | | |
| | | |
| | |
Arc'teryx | |
| 146 | | |
| 130 | | |
| 12 | % |
Peak Performance | |
| 44 | | |
| 41 | | |
| 7 | % |
Total | |
| 190 | | |
| 171 | | |
| 11 | % |
Omni comp | |
| 36 | % | |
| 61 | % | |
| | |
| (1) | Reflects the
number of Technical Apparel owned retail stores open at the end of the fiscal period |
| (2) | Omni comp reflects
year over year revenue growth from owned retail stores and e-commerce sites that have been
open at least 13 months |
ADJUSTED GROSS PROFIT
RECONCILIATION
For the Three Months
Ended March 31, 2024 and 2023
(Unaudited; $ in millions)
| |
| Three
Months Ended | |
($
in millions) | |
2024 | | |
2023 | |
Gross
profit | |
$ | 638 | | |
$ | 555 | |
PPA | |
| 4 | | |
| 4 | |
Restructuring
expenses | |
| - | | |
| - | |
Adjusted
gross profit | |
$ | 642 | | |
$ | 559 | |
ADJUSTED SG&A RECONCILIATION
For the Three Months
Ended March 31, 2024 and 2023
(Unaudited; $ in millions)
| |
| Three
Months Ended | |
($
in millions) | |
2024 | | |
2023 | |
Selling,
general and administrative expenses | |
$ | 534 | | |
$ | 422 | |
Restructuring
expenses | |
| 1 | | |
| - | |
PPA | |
| 7 | | |
| 7 | |
Expenses
related to transaction activities | |
| 6 | | |
| 0 | |
Expenses
related to certain legal proceedings | |
| - | | |
| - | |
Share-based
payments | |
| 3 | | |
| - | |
Adjusted
SG&A expenses | |
$ | 517 | | |
$ | 415 | |
ADJUSTED OPERATING PROFIT
RECONCILIATION(1)
For the Three Months
Ended March 31, 2024 and 2023
(Unaudited; $ in millions)
| |
| Three
Months Ended | |
($
in millions) | |
2024 | | |
2023 | |
Income
before tax | |
$ | 15 | | |
$ | 46 | |
PPA | |
| 11 | | |
| 11 | |
Restructuring
expenses | |
| 1 | | |
| - | |
Impairment
related to goodwill and intangible assets | |
| - | | |
| - | |
Expenses
related to transaction activities (2) | |
| 24 | | |
| 0 | |
Expenses
related to certain legal proceedings | |
| - | | |
| - | |
Share-based
payments | |
| 3 | | |
| - | |
Finance
costs | |
| 65 | | |
| 86 | |
Loss
on debt extinguishment | |
| 14 | | |
| - | |
Finance
income | |
| (3 | ) | |
| (1 | ) |
Adjusted
operating profit | |
$ | 130 | | |
$ | 141 | |
(1) The presented figures
and percentages are subject to rounding adjustments, which may cause discrepancies between the sum of the individual figures and the
presented aggregated column and row totals.
(2)
Includes approximately $18 million of foreign currency exchange losses related to contract costs incurred in association with our IPO,
which are classified as Finance costs on the Consolidated Statement of Income.
ADJUSTED NET INCOME RECONCILIATION
For the Three Months
Ended March 31, 2024 and 2023
(Unaudited; $ in millions, except per share information)
| |
| Three
Months Ended | |
($
in millions) | |
2024 | | |
2023 | |
Net
income attributable to equity holders | |
$ | 5 | | |
$ | 19 | |
PPA | |
| 11 | | |
| 11 | |
Restructuring
expenses | |
| 1 | | |
| - | |
Impairment
losses on goodwill and intangible assets | |
| - | | |
| - | |
Expenses
related to transaction activities | |
| 24 | | |
| 0 | |
Expenses
related to certain legal proceedings | |
| - | | |
| - | |
Share-based
payments | |
| 3 | | |
| - | |
Income
tax expense | |
| (5 | ) | |
| (3 | ) |
| |
| | | |
| | |
Adjusted
net income | |
$ | 39 | | |
$ | 27 | |
Adjusted total
diluted income per share | |
$ | 0.08 | | |
$ | 0.07 | |
EBITDA,
ADJUSTED EBITDA, AND ADJUSTED EBITDA MARGIN
RECONCILIATION(1)
For the Three Months
Ended March 31, 2024 and 2023
(Unaudited; $ in millions)
| |
| Three
Months Ended | |
($ in millions) | |
2024 | | |
2023 | |
Revenue | |
$ | 1,183 | | |
$ | 1,050 | |
Net income attributable to equity holders | |
$ | 5 | | |
$ | 19 | |
Net
income attributable to non-controlling interests | |
| 2 | | |
| - | |
Income
tax expense | |
| 8 | | |
| 27 | |
Finance
cost (2) | |
| 82 | | |
| 86 | |
Loss
on debt extinguishment | |
| 14 | | |
| - | |
Depreciation
and amortization (3) | |
| 63 | | |
| 52 | |
Finance
income | |
| (3 | ) | |
| (1 | ) |
EBITDA | |
$ | 171 | | |
$ | 182 | |
Restructuring
expenses | |
| 1 | | |
| - | |
Impairment
losses on goodwill and intangible assets | |
| - | | |
| - | |
Expenses
related to transaction activities | |
| 6 | | |
| 0 | |
Expenses
related to certain legal proceedings | |
| - | | |
| - | |
Share-based
payments | |
| 3 | | |
| - | |
Adjusted
EBITDA | |
$ | 182 | | |
$ | 183 | |
Net income margin | |
| 0.4 | % | |
| 1.8 | % |
Adjusted EBITDA
Margin | |
| 15.3 | % | |
| 17.4 | % |
(1) The presented figures
and percentages are subject to rounding adjustments, which may cause discrepancies between the sum of the individual figures and the
presented aggregated column and row totals.
(2) Total interest expense
on lease liabilities under IFRS 16, Leases was $4.3 and $2.0 for the three month period ended March 31, 2024, and 2023, respectively.
(3) Depreciation and amortization includes amortization expense for right-of-use assets capitalized under IFRS 16, Leases of $26.5 million
and $18.8 million for the three months ended March 31, 2024 and 2023, respectively.
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