American Outdoor Brands, Inc. net sales were $57.9 million for the fiscal second quarter ended October 31, an increase of 6.4 percent from net sales of $54.4 million for the comparable quarter last year. Traditional channel net sales increased 8.7 percent, while e-commerce net sales increased 3.3 percent. Compared with pre-COVID levels in fiscal 2020, quarterly net sales increased 21.3 percent.
Gross margin was 45.7 percent of sales for the fiscal Q2, a decrease of 200 basis points, compared with quarterly gross margin of 47.7 percent for the comparable quarter last year.
Quarterly GAAP net income was $77,000, or 1 cent per diluted share, compared with GAAP net income of $370,000, or 3 cents per diluted share, for the comparable quarter last year.
Quarterly non-GAAP net income was $3.3 million, or 25 cents per diluted share, compared with non-GAAP net income of $4.0 million, or 29 cents per diluted share, for the comparable quarter last year.
GAAP to non-GAAP adjustments for net income reportedly exclude acquired intangible amortization, stock compensation, technology implementation, and other costs.
Quarterly non-GAAP Adjusted EBITDA was $5.2 million, or 9.0 percent of net sales, compared with $6.4 million, or 11.8 percent of net sales, for the comparable quarter last year.
“Our second quarter results reflect solid performance in net sales and capital management, as well as ongoing progress against our long-term strategic objectives,” said company President and CEO Brian Murphy. “Net sales grew by 6.4 percent compared with the second quarter last year, a result that exceeded our expectations and represented growth of more than 21 percent over our pre-pandemic second quarter of fiscal 2020.
Murphy said the shooting sports category saw a slight decline in net sales compared with the prior year, “consistent with industry trends in that space.”
“That decline was offset by growth in our outdoor lifestyle category, demonstrating the strength of our brands in this growing part of our business,” he continued. “In fact, our outdoor lifestyle category accounted for nearly 60 percent of our total net sales in the second quarter. We believe this growth reflects our strategy to intentionally place our brands where consumers expect to find them, whether online or in-store. Accordingly, both our e-commerce and our traditional channels delivered net sales growth in the second quarter.”
“We believe our brands remain well positioned to capitalize on positive, long-term consumer outdoor participation trends,” offered CFO Andrew Fulmer. “As a result, we continue to believe that our net sales for fiscal 2024 could exceed fiscal 2023 net sales by as much as 3.5 percent. We also believe our solid financial position enables us to continue investing in our business, returning capital to our stockholders, and addressing the exciting growth opportunities we have identified for our company.”
AOUT ended the quarter with $8.4 million in cash and no debt, after repurchasing approximately $1.5 million of its common stock.
Photo courtesy of r/smoking
