Amer Sports falls as premium outerwear brand Arc’teryx slows

Amer Sports Inc. shares fell after one of its key divisions posted the slowest sales growth on record. Sales of the group’s Technical Apparel unit — which houses outerwear brand Arc’teryx — rose 25% over the second quarter, meeting analysts’ estimates. Growth has been steadily declining, and is projected to fall further, according to a Tuesday statement.

Sales from existing locations — so-called omni-comp sales, or revenue generated from owned retail stores and e-commerce sites open at least 13 months — were the main drag on the segment’s performance, registering 15% revenue growth over the quarter, below the 19% Wall Street expected.

The Finnish sporting goods conglomerate remains upbeat about the future and raised its full-year outlook for a second time this year. Revenue is seen up as much as 21%, up from 15% to 17% in a prior forecast — in part due to favourable exchange rates. The stock briefly traded positive before falling 4% in premarket trading in New York.

Full-year earnings are seen reaching $0.77 to $0.82 per share, up from $0.67 to $0.72 last predicted, and more than the $0.75 analysts polled by Bloomberg had expected. The guidance assumes higher tariffs than previously expected.

Amer Sports’ growth and positive outlook comes as its Salomon shoes and Arc’teryx apparel gain traction among athleisure fans. Quarterly earnings rose to 6 cents per share, adjusted for some items, more than double the 2.5 cents analysts had predicted.