Amer Sports makes sports clothes and gear, but their stock price went down by 8% after they told everyone how much money they made in the first three months of this year. Even though they made more money than people expected, some investors are worried about the cost of making and selling their products going up. Amer Sports still thinks it will make a lot of money this year and next year. Read from source...

- The title of the article is misleading and sensationalist, implying that there is a major issue with Amer Sports' performance when in fact they beat both earnings and revenue estimates. A more accurate title would be "Amer Sports Beats Earnings and Revenue Estimates, Shares Fall 8%".
- The article focuses too much on the negative aspects of the results, such as the decrease in operating margin and the increase in inventories and net debt, while neglecting to mention the positive aspects, such as the strong growth in Technical Apparel segment, the favorable gross profit margin improvement, and the increased guidance for EPS and Technical Apparel revenues.
- The article uses vague and subjective terms like "what's going on?" and "well positioned" without providing any evidence or analysis to support them. A more objective and informative approach would be to explain the factors behind the performance, such as market trends, customer preferences, product innovation, competition, etc.
- The article does not provide any context or comparison for the results, such as how they stack up against the same period last year, the industry average, or the company's own projections. This makes it hard for readers to judge whether the results are good or bad, and whether they represent a sustainable growth strategy or a temporary blip.
- The article ends with a price action section that seems out of place and irrelevant, as it does not relate to the performance or the outlook of Amer Sports, but rather to the market reaction and sentiment. A more useful section would be to discuss the implications of the results for the company's valuation, growth prospects, and risk factors.

The company reported first-quarter adjusted earnings per share of 8 cents, beating the analyst consensus of 3 cents. Quarterly revenues of $1.183 billion beat the street view of $1.131 billion. Revenue increased 13% year over year, led by a 44% increase in the Technical Apparel segment. Amer Sports said that 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 generated broad-based growth across regions, led by Asia Pacific and the Americas, followed by Greater China and Europe, the Middle East and Africa. 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. Adjusted operating margin decreased 240 bps from 13.4% in the first quarter of 2023 to 11.0%. Year-over-year inventories were up 6%. Net debt was $1.7 billion, and cash and equivalents totaled $337 million at quarter end. “As increased demand materializes, we are well positioned to service the elevated demand,” CFO Andrew Page said. Amer Sports expects FY24 EPS toward the high end of the previous guidance range of $0.30 to $0.40 (estimate: $0.41), including a $0.03 – $0.04 negative impact to EPS from non-recurring finance costs in 1Q24. Previously, the company anticipated a negative impact of $0.08 – $0.09 on EPS. The company projects Technical Apparel revenues of above 25% revenue growth (prior view: above 20%), with segment operating margin slightly above 20%. Amer Sports expects a second-quarter EPS loss of $0.04-$0.08 versus the $0.05 loss estimate. Price Action: AS shares are trading lower by 7.8% to $14.78 at last check Tuesday.