Many investors may not be familiar with the name American Sports (NYSE: AS)but they probably know the company’s famous brands. Amer Sports owns iconic sports and outdoor brands, including Wilson tennis rackets and soccer balls, Atomic and Salomon ski equipment, and Louisville Slugger baseball bats.

The company could become a more familiar name if it maintains the performance it announced in its second-quarter report released today. The strong financial performance prompted the company to update its full-year 2024 guidance, and investors drove the stock up as much as 15.5% in response. As of 2:10 p.m. ET, the stock was still up 9.9%. Amer Sports shares have gained about 24% in the past month alone.

Raising the financial bar

Investors may have been expecting a good quarter, which led to the recent rally in Amer Sports shares. The company did not disappoint when it updated its full-year 2024 guidance for the second time this year. The momentum of the business is driven by its technical apparel brands, with sales in this segment growing 45% in 2023. It is on track to overtake the outdoor performance segment in 2024 as the company’s largest segment.

Management now expects that technical clothing – led by flagship brand Arc’teryx — expects a sales increase of more than 30% this year. This is already the second increase in the forecast after the company had originally forecast growth of around 20% for 2024.

The company also raised its full-year earnings forecast. After two consecutive years of negative net income, Amer Sports now expects to earn an average of $0.42 per share for the year. With several of its brands performing well, investors are looking to put past losses behind them and are getting into Amer Sports today.

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Howard Smith does not own any stocks mentioned. The Motley Fool does not own any stocks mentioned. The Motley Fool has a disclosure policy.

Why Amer Sports Stock Performed So Well Today was originally published by The Motley Fool