American Outdoor Brands, Inc. reported net sales were $58.5 million for the fiscal third quarter ended January 31, an increase of 9.5 percent compared with net sales of $53.4 million for the prior-year fiscal third quarter.

  • Traditional channel net sales up 9.6 percent
  • E-Commerce channel net sales up 9.5 percent
  • Domestic channel net sales up 10.1 percent

Third quarter gross margin was 44.7 percent of net sales, compared with quarterly gross margin of 42.7 percent for the prior-year comparable quarter.

Quarterly GAAP net income was $169,000, or a penny per diluted share, compared with a GAAP net loss of $2.9 million, or a loss of 23 cents per diluted share, in the prior-year Q3 period.

Quarterly non-GAAP net income was $2.7 million, or 21 cents per diluted share, compared with non-GAAP net income of $1.0 million, or 8 cents per diluted share, in the prior-year Q3 period. GAAP to non-GAAP adjustments for net income exclude acquired intangible amortization, stock compensation, technology implementation, emerging growth status transition costs, and other costs.

Quarterly non-GAAP Adjusted EBITDAS was $4.7 million, or 8.1 percent of net sales, compared with Adjusted EBITDAS of $2.4 million, or 4.4 percent of net sales, in the prior-year Q3 period.

Brian Murphy, president and CEO, American Outdoor Brands, Inc., said, “Our third quarter results came in ahead of our expectations. We believe our strong performance demonstrates the effectiveness of our long-term strategy to leverage our innovation advantage to broaden our distribution opportunities, expand awareness of our brands, and strengthen our margins. We delivered growth in both our Outdoor Lifestyle and our Shooting Sports categories, supported by year-over-year increases in nearly all sales channels in the third quarter, including our traditional, e-commerce, and domestic sales channels. In addition, we delivered a significant increase in Non-GAAP Adjusted EBITDAS, which nearly doubled year-over-year.

“In January, we unveiled several new products that showcase our ability to leverage our innovation advantage to drive brand awareness and expand our markets by making outdoor activities more accessible to a broader audience of enthusiasts. Two prime examples come from our Caldwell and Bubba brands. From Caldwell, we are reshaping how clay shooters take aim by introducing a revolutionary new target system called the ClayCopter, which includes an easy-to-use, handheld electronic launcher that propels a set of biodegradable discs up to 100 yards in an endless variety of flight patterns, challenging shooters like never before. Both the launcher and targets fit easily into a backpack, making clay target shooting a more fun and spontaneous activity. From Bubba, we are bringing fishing gamification to a much larger group of everyday anglers, allowing them to compete like the pros with the Bubba SFS Lite, an affordable breakthrough scale made with the same uncompromising reliability that Major League Fishing pros have come to trust in our Bubba SFS Pro Series. These are just two of the many industry-changing innovations we showcased in January. The response to our new products has been overwhelmingly positive, generating industry excitement, favorable reviews, social media buzz, and exceptional retailer enthusiasm that helps reinforce our confidence in our sales outlook for fiscal 2025 and beyond.”

Company CFO Andrew Fulmer added, “During the third quarter, we maintained disciplined capital management, building inventory to support customer order strength and repurchasing roughly $1.2 million of our common stock. We ended the quarter with $17.1 million in cash and no debt. We remain excited about the opportunities that lie ahead, especially in light of our strong third quarter performance, combined with ongoing retailer enthusiasm for our new products and our ability to provide instant access to innovation and excitement. As a result, we are increasing the midpoint of our net sales, earnings per share, and non-GAAP Adjusted EBITDAS guidance for fiscal 2025, and reiterating our net sales outlook for fiscal 2026, which begins May 1, 2025.”

Image courtesy American Outdoor Brands