American Outdoor Brands, Inc. (AOB) has reported net sales of $29.7 million for the fiscal 2026 first quarter ended July 31, a 28.7 percent year-over-year decrease, compared with net sales of $41.6 million for the prior-year Q1 period.
Gross margin was reported at 46.7 percent of net sales for fiscal Q1, compared with 45.4 percent for the prior-year Q1 period.
GAAP net loss was $6.8 million, or a loss of 54 cents per diluted share, in the quarter, compared with a GAAP net loss of $2.4 million, or a loss of 18 cents per diluted share, for the comparable quarter last year.
Non-GAAP net loss was $3.3 million, or a loss of 26 cents per diluted share, in Q1, compared with non-GAAP net income of $748,000, or EPS of 6 cents per diluted share, for the prior-year fiscal Q1 period. GAAP to non-GAAP adjustments for net income exclude acquired intangible amortization, stock compensation, and other costs.
Quarterly non-GAAP Adjusted EBITDA was negative $3.1 million, or negative 10.5 percent of net sales, in fiscal Q1, compared with Adjusted EBITDA of $2.0 million, or 4.8 percent of net sales, for the comparable Q1 quarter last year.
Brian Murphy, President and CEO, said, “Our brands continue to resonate with consumers, fueling stronger point-of-sale performance versus peers across several strategic product categories, a result that is supported by feedback from key retail partners and third-party data. You’ll recall that many of these partners accelerated orders late in the fourth quarter to get ahead of tariff-related price changes, ensuring inventory of both our most popular products and exciting new products – such as the Caldwell ClayCopter™ and BUBBA Smart Fish Scale Lite. We believe the strength in consumer pull-through speaks to the power of our innovation engine and enduring appeal of our portfolio, especially during a seasonally light period of the year. In fact, new products represented nearly 29 percent of our net sales during the first quarter.”
Purchasing activity from retail partners during the first quarter reportedly reflected replenishment cycles that were periodically turned on and off on a retailer-by-retailer basis, as each retailer sought to optimize pricing, product mix, and cash flows, tailored to their specific situation.
“These ordering patterns created a year-over-year net sales decline in the first quarter,” explained Murphy. “However, if we adjust for the acceleration of orders by our retailers into the fourth quarter, total first quarter net sales would have declined approximately 5 percent – a favorable result given the environment – and net sales in our traditional channel would have increased by about 15 percent. This tells us our strategy is effective, and that – coupled with our POS performance – our brands are winning at retail.
“Throughout the quarter, our teams did a great job navigating a rapidly changing tariff environment with agility and discipline, while advancing our long-term growth strategy and maintaining our commitment to innovation,” the CEO continued. “That commitment was on full display with our announcement of an expanded partnership between our Bubba brand and Major League Fishing (MLF). Together, we are integrating MLF Scoretracker technology into the Bubba app to launch Scoretracker Live in Spring 2026 – delivering real-time tournament hosting and live scoring for anglers, organizers, and fans. We expect this innovation will accelerate our recurring subscription revenue stream and extend Bubba’s reach.”
Murphy added, “With the first quarter under our belt, these first few months of our fiscal year suggest that the near-term environment will continue to reflect shifting market conditions and evolving consumer trends, requiring us to remain agile and adaptable as we navigate quarterly fluctuations.”
He said that going forward, the company will continue to lean on a strategy that, they believe, has proven to be resilient across cycles by continuing to innovate, staying close to their consumers, strengthening retail partnerships, and executing with discipline.
“These fundamentals, combined with our strong financial position, are not only helping us manage through today’s uncertainty, but also positioning us to continue executing on our strategic objectives to maximize long-term value,” he concluded.
“Including approximately $10 million of net sales that were accelerated by our retailers from the first quarter of fiscal 2026 into the fourth quarter of fiscal 2025, first-quarter fiscal 2026 net sales would have declined 4.7 percent compared with the prior-year period,” offered company CFO Andrew Fulmer. “We believe this performance underscores the continued strength of our popular brands, while also reflecting retailers’ measured approach to order flow during this seasonally quiet period ahead of the fall hunting and holiday shopping seasons.”
Fulmer said the balance sheet remains a source of strength, providing AOB with the resources and flexibility to pursue its strategic objectives.
“During the quarter, we demonstrated disciplined capital deployment by repurchasing approximately 240,000 shares of our stock for $2.5 million, and we ended the first quarter debt-free with $17.8 million in cash. This strong financial foundation gives us the flexibility to pursue growth opportunities that create long-term, lasting value for shareholders,” he said, wrapping up the earnings release.
Image courtesy Major League Fishing and Bubba/America Outdoor Brands, Inc.
