American Outdoor Brands, Inc. reported a profit in the fiscal first quarter ended July 31 against a year-ago loss as sales jumped 25 percent.

First quarter net sales were $37.3 million, an increase of $7.6 million, or 25.4 percent, compared with quarterly net sales of $29.7 million for the comparable quarter last year. Adjusted for approximately $6.0 million of orders that were accelerated by retailers from the first quarter of fiscal 2026 into the fourth quarter of fiscal 2025, net sales in the first quarter of fiscal 2027 increased by 4.3 percent.

Brian Murphy, president and CEO, said, “We are very pleased with our strong start to fiscal 2027. First quarter net sales increased approximately 25 percent. As a reminder, the prior-year quarter was impacted by approximately $6 million of orders that retailers accelerated into fiscal 2025. Even after adjusting for that acceleration, first quarter net sales increased approximately 4 percent – a great result that exceeded our expectations and reflects the continued strength of our brands.

“Importantly, that performance was broad-based, reflecting growth in both our Outdoor Lifestyle and Shooting Sports categories, and supported by increased sales with our largest retail partners. Point-of-sale (POS) results also remained positive in both categories during the quarter, which we believe demonstrates healthy consumer demand across multiple brands in our portfolio. POS increased 6 percent in Outdoor Lifestyle and 3 percent in Shooting Sports.

“Bubba and Caldwell demonstrate our strategy to build connected ecosystems around key growth brands that deepen consumer engagement and loyalty, extend the value of our innovation beyond individual products, and create multiple avenues for long-term growth. We believe this approach has the potential to extend to other brands in our portfolio over time.”

Andrew Fulmer, Chief Financial Officer, said, “Sales growth in the quarter translated to solid financial performance. Strength in new products helped accelerate margin expansion with gross margins increasing 630 basis points to 53.0 percent and Adjusted EBITDA improving more than $4.0 million. We also generated meaningful cash flow and ended the quarter with $33.3 million in cash and no debt, further strengthening our financial position.”

Profitability
Gross margin was 53.0 percent of net sales for the period, compared with quarterly gross margin of 46.7 percent for the comparable quarter last year.

The GAAP net loss was $1.5 million, or 12 cents per diluted share, for fiscal Q1, compared with a GAAP net loss of $6.8 million, or 54 cents per diluted share for the comparable quarter last year.

Quarterly non-GAAP net income was $415,000, or 3 cents per diluted share, compared with non-GAAP net loss of $3.3 million, or 26 cents per diluted share, for the comparable quarter last year. GAAP to non-GAAP adjustments for net income (loss) exclude acquired intangible amortization, stock compensation, and other costs.

Quarterly non-GAAP Adjusted EBITDA was $1.2 million, or 3.1 percent of net sales, compared with $(3.1) million, or (10.5) percent of net sales for the comparable quarter last year. For a detailed reconciliation, see the schedules that follow in this release.

Fiscal 2027 Outlook
The first quarter performance reportedly reinforces the confidence in the company’s expectations for the year. AOUT is maintaining our full-year guidance for net sales of $200 million to $210 million, and increasing the Adjusted EBITDA guidance to $14.5 million to $17.5 million.

“As we enter our seasonally stronger second and third quarters, we remain focused on delivering profitable growth while maintaining the financial flexibility to invest in our business and pursue opportunities that create long-term shareholder value,” Fulmer said.

American Outdoor Brands’ offers hunting, fishing, camping, shooting, meat processing, outdoor cooking, personal security, and personal defense products. Brands in its portfolio include Bog, Bubba, Caldwell, Crimson Trace, Frankford Arsenal, Grilla, Hooyman, Imperia, LaserLyte, Lockdown, Meat! Your Maker, Old Timer, Schrade, Tipton, Uncle Henry, and Wheeler.

Image courtesy of American Outdoor Brands