#USA #Columbia #American Outdoor Brands #BUBBA #AOUT

American Outdoor Brands, Inc. First Quarter Fiscal 2026 Financial Results

On September 4, 2025, American Outdoor Brands, Inc. (NASDAQ Global Select: AOUT) shared its financial performance for the first quarter of fiscal 2026, concluding on July 31, 2025. Despite the company encountering several challenges, it also highlighted its innovative products and adaptability in a changing market environment.

Financial Highlights

• - Net Sales: The company's quarterly net sales were reported at $29.7 million, down by $11.9 million, or 28.7% compared to the same quarter last year, where sales reached $41.6 million.
• - Gross Margin: The gross margin stood at 46.7%, a slight increase from 45.4% in the previous year, demonstrating a focus on maintaining product quality amidst reduced sales.
• - Net Loss: A GAAP net loss of $6.8 million was reported, translating to $(0.54) per diluted share. This is a significant increase from a net loss of $2.4 million or $(0.18) per diluted share in the same quarter the previous year.
• - Non-GAAP Loss: The non-GAAP net loss for the quarter was $(3.3) million, equating to $(0.26) per diluted share in contrast to a non-GAAP income of $748,000 the previous year.
• - Adjusted EBITDA: Non-GAAP Adjusted EBITDA recorded a loss of $(3.1) million, or (10.5)% of net sales, compared to an Adjusted EBITDA of $2.0 million, or 4.8% of net sales in the prior year, highlighting the company's struggle within the market.

Strategic Insights

Brian Murphy, the President and CEO, noted that despite the decline in sales, the brand's presence remains strong among consumers, driven by effective point-of-sale performance in specific categories. This performance was reinforced by feedback from retail partners and external data revealing that numerous retail partners accelerated their orders towards the end of the previous fiscal quarter in anticipation of upcoming tariff changes. Murphy mentioned, "New products made up nearly 29% of our net sales in this quarter, indicating the effectiveness of our innovation strategy." Among these innovations was the Caldwell ClayCopter™ and the BUBBA Smart Fish Scale Lite, which are expected to resonate well with the target audience.

Analyzing purchase patterns, it was observed that retailer ordering dynamics varied, with some adjusting orders based on their unique situations leading to the year-over-year sales decline. However, if orders accelerated by retailers in the prior quarter are taken into account, the decline in sales could have been approximately 5% rather than 28.7%. Murphy remarked, "Our strategy is effective, and our brands are performing well at retail."

The company remains committed to innovation and agility in navigating an ever-evolving market landscape. Notably, American Outdoor Brands announced a strengthened partnership with Major League Fishing (MLF). This collaboration will integrate MLF SCORETRACKER® technology into their BUBBA app, launching SCORETRACKER LIVE in Spring 2026. This move is anticipated to bolster subscription revenue and expand the brand's reach, reflecting the company’s proactive approach to adapting to market shifts.

Future Outlook

Despite challenges, the company’s commitment to its long-term growth strategy was reiterated by Murphy. He emphasized the necessity of staying agile amid fluctuating market conditions while continuing to innovate and strengthen relationships with consumers and retail partners. The fiscal year's initial months suggest a continued need for flexibility and responsiveness to shifting consumer trends.

Chief Financial Officer Andrew Fulmer remarked, "Including approximately $10 million accelerated by our retailers, the sales decline would reduce to 4.7% compared to last year, demonstrating the ongoing strength of our brands even during slower sales periods."

The financial standing of the company is a source of strength, with the quarter closing debt-free and a cash reserve of $17.8 million, providing an advantageous position to pursue growth opportunities. Recently, they repurchased about 240,000 shares of stock for $2.5 million, reinforcing investor confidence.

Conclusion

American Outdoor Brands, Inc. concludes the first quarter of fiscal 2026 with a careful balance of recognizing existing challenges and celebrating new innovations. As they prepare for the fall hunting and holiday shopping seasons, the company is strategically poised to leverage its strengths and adapt to the evolving landscape ahead.