On Wednesday, UBS reaffirmed its Buy rating on Amer Sports Inc. (NYSE:AS) with a steady price target of $23.00. The firm recognized several key strengths in Amer Sports' recent financial report, including an increase in the company's full-year 2024 earnings per share (EPS) guidance. Amer Sports also surpassed expectations with robust first-quarter sales, gross margin, and EPS figures.
The company's inventory growth showed a significant slowdown, decreasing to a 6% year-over-year increase, a reduction from the previous quarter. Additionally, Amer Sports' Arc'teryx brand reported a notable 36% year-over-year growth in omnichannel comparable sales for the first quarter. Furthermore, Amer Sports enhanced its full-year 2024 revenue growth forecast for Technical Apparel to 25% year-over-year, up from the previously projected 20%.
Despite these positive indicators, Amer Sports' second-quarter operating guidance did not meet market expectations. Moreover, the company provided softer revenue guidance for its Outdoor Performance segment and margins for its Ball (NYSE:BALL) & Racquet division compared to previous forecasts. UBS suggested that these factors might lead to a more cautious market stance on Amer Sports' outlook for full-year 2024 and could potentially weigh on the stock's price today, despite the strong first-quarter results.
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