American Outdoor Brands, Inc. reported that fiscal third quarter net sales were $53.4 million for the three-month period ended January 31, an increase of $2.5 million, or 5.0 percent, compared with net sales of $50.9 million for the prior-year comparable quarter.

  • Traditional channel net sales increased 8.1 percent year-over-year (YoY) to $28.5 million.
  • E-commerce net sales increased 1.6 percent YoY to $24.9 million.
  • Compared with pre-COVID levels in fiscal 2020, quarterly net sales increased 23.3 percent.
  • Shooting Sports net sales grew 7.6 percent YoY in fiscal Q3 to $243.3 million.
  • Outdoor Lifestyle net sales increased 2.8 percent YoY to $29.1 million in the quarter.
  • Domestic sales were up 3.1 percent YoY to $51.0 million in the third quarter.
  • International sales jumped 72.2 percent YoY from a low brio-year base to $2.4 million in the fiscal 2924 third quarter.

The company’s e-commerce channels include net sales from customers that do not traditionally operate a physical brick-and-mortar store, but generate the majority of their revenue from consumer purchases at their retail websites. The company said its e-commerce channels also include owned direct-to-consumer sales. The traditional channels include customers that operate primarily out of physical brick and mortar stores and generate the large majority of their revenue from consumer purchases at their brick-and-mortar locations.

Third quarter consolidated gross margin was 42.7 percent of sales, a decrease of 440 basis points compared with gross margin of 47.1 percent for the prior-year comp period. Gross margin in the quarter was reportedly impacted by the amortization in the second half of fiscal 2024 of tariff and freight costs stemming from higher inventory purchases that occurred in the first half of fiscal 2024.

GAAP net loss was $2.9 million, or a loss of 23 cents per diluted share, compared with GAAP net loss of $2.9 million, or (a loss of 21 cents per diluted share, for the prior-year comp period.

  • Third quarter non-GAAP net income was $1.0 million, or 8 cents per diluted share, compared with non-GAAP net income of $1.7 million, or 13 cents per diluted share, for the prior-year comp period.
  • GAAP to non-GAAP adjustments for net income exclude acquired intangible amortization, stock compensation, technology implementation, and other costs.

Non-GAAP Adjusted EBITDAS was $2.4 million, or 4.4 percent of net sales, compared with $3.3 million, or 6.4 percent of net sales, for the prior-year comp period.

“We delivered a solid quarter, and I am very pleased with our results, which included top line sales growth, disciplined capital management, and the unveiling of several strategically important product introductions that we believe expand our brands’ runway for growth,” said Brian Murphy, president and CEO, American Outdoor Brands, Inc. “I believe our results demonstrate our ability to remain focused on our long-term growth strategy, while successfully navigating the near-term environment. We delivered net sales growth of 5 percent, a result that came in ahead of our expectations and was supported by our diverse portfolio, evidenced by stronger sales across a number of brands within our Shooting Sports and Outdoor Lifestyle categories, which both delivered net sales growth. In addition, our e-Commerce and Traditional channels experienced net sales growth in the quarter.”

Company CFO Andrew Fulmer said, “In the third quarter of fiscal 2024, we delivered net sales growth, we strengthened our balance sheet, we lowered product inventories both internally and within the channel, and we continued to return cash to stockholders through our share repurchase program. At the same time, we finalized the lease expansion at our Columbia, Missouri headquarters and distribution facility, providing us with capacity for future growth. We ended the quarter with $15.9 million in cash and no debt, after repurchasing approximately $1.8 million of our common stock.”

“We believe our brands remain well positioned to capitalize on positive, long-term consumer outdoor participation trends. 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,” concluded Fulmer.