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American Outdoor Brands, Inc. Reports Second Quarter FY 2025 Financial Results

Columbia, MO, December 5, 2024 – American Outdoor Brands, Inc. (NASDAQ: AOUT), a leading provider of product solutions for outdoor enthusiasts, has released its financial results for the second quarter of fiscal 2025, ending October 31, 2024. The company's performance reflects significant growth compared to the previous year, with net sales reaching $60.2 million, an increase of $2.3 million or 4.0% from $57.9 million a year ago.

Financial Highlights

Key highlights from the quarter include:

• - Net Sales: Increased by 4.0% year-over-year, driven primarily by growth in both traditional and e-commerce sales channels.
• - Gross Margin: Improved to 48.0%, up 230 basis points from the previous year, which highlights the company’s focus on profitability.
• - Net Income: The GAAP net income rose significantly to $3.1 million, or $0.24 per diluted share, compared to a mere $77,000 or $0.01 per diluted share last year.
• - Non-GAAP Net Income: Increased to $4.9 million or $0.37 per diluted share, showing a strong improvement in underlying performance.
• - EBITDAS: Non-GAAP Adjusted EBITDAS surged to $7.5 million, representing a remarkable 42.9% growth compared to the prior year.

Detailed Breakdown

The company reported year-over-year growth across all sales channels. The traditional channel sales advanced by 4.3%, while e-commerce sales saw an increase of 3.5%. Additionally, domestic sales climbed by 3.4%, and international sales soared by an impressive 14.8%.

Brian Murphy, President and CEO, expressed enthusiasm about the company's performance, stating, “Our second quarter results exceeded expectations, bolstered by a robust growth in our Outdoor Lifestyle category of 5.4% and a healthy 1.9% rise in our Shooting Sports category. All sales channels exhibited a positive trend during the second quarter.”

In particular, products from the BOG, MEAT! Your Maker, and Grilla brands in the Outdoor Lifestyle category received strong consumer demand, driving their market performance. In the Shooting Sports category, the Caldwell Claymore family and Tipton brand propelled growth in shooting accessories, compensating for weaker sales in personal protection products.

Outlook and Future Plans

Murphy highlighted the company's strong pipeline of new products, many of which are slated for debut at the upcoming SHOT Show in January 2025. The reception from retailers has been notably positive, with early order commitments indicating strong demand for new items, leading to expectations for expanded shelf space.

CFO Andrew Fulmer reaffirmed the company’s strong financial management, noting that inventory levels were strategically built to support incoming orders, alongside a $1.0 million share repurchase initiative. Fulmer remarked on the firm’s positive outlook for fiscal 2025, amidst increasing retailer feedback regarding order plans related to new products.

Conclusion

In summary, American Outdoor Brands, Inc. showcases a robust financial position with a significantly improved second quarter performance. With strong sales growth, positive feedback from retailers, and a promising product pipeline, the company is set to enhance its foothold in the outdoor products market as it approaches fiscal 2026. Investors and stakeholders can look forward to a concluded conference call discussing these developments in further detail later today, December 5, 2024. For more information about American Outdoor Brands and its product offerings, please visit aob.com.