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American Outdoor Brands, Inc. Reports Second Quarter Fiscal 2026 Financial Results

American Outdoor Brands, Inc. (NASDAQ Global Select: AOUT), known for its innovative solutions catering to outdoor enthusiasts, disclosed its financial results for the second quarter of fiscal year 2026, ending October 31, 2025. With net sales of $57.2 million, the company noted a 5.0% decline from the previous year's $60.2 million in the same quarter.

Key Financial Metrics

Among the highlights from the second quarter:

• - Gross Margin: The gross margin decreased to 45.6%, down from 48.0% in the comparable quarter of the previous year.
• - Net Income: The GAAP net income for the quarter was $2.1 million, or $0.16 per diluted share, compared to $3.1 million, or $0.24 per diluted share, for the same period last year. Moreover, the non-GAAP net income was $3.7 million, or $0.29 per diluted share versus $4.9 million, $0.37 per diluted share, from the corresponding quarter last year.
• - Adjusted EBITDA: The non-GAAP adjusted EBITDA stood at $6.5 million, representing 11.3% of net sales, down from $7.5 million, or 12.4% of net sales, from the prior year's quarter.

These figures underscore a challenging yet proactive approach adopted by the company amid fluctuating market conditions.

Innovation and Retail Engagement

Brian Murphy, President and CEO of American Outdoor Brands, expressed confidence in the company's strategy tailored toward innovation and market expansion in new outdoor categories. He highlighted robust product engagement, stating, "Our commitment to innovation and strategic execution is propelling the growth of our brands, engaging consumers and retail partners effectively. Pull-through of our products at retail exhibited strong performance with total point-of-sale up by 4% year-over-year."

Despite the hurdles in the retail landscape, Murphy pointed out that product ordering patterns varied, with increased activity during the latter part of the quarter. This resulted in a more favorable revenue decline compared to expectations. Murphy added, "Our partners have been progressively relying on our innovative brands, such as Caldwell® and BOG®, to attract consumers and boost foot traffic. These trends affirm the effectiveness of our strategic approach and the success of our brands at retail."

The quarter also showed promising results from newly launched products, which constituted over 31% of net sales. Noteworthy additions include advancements in the Caldwell® ClayCopter™ and Claymore® shotgun lines, showcasing the innovation pipeline of the company.

Upcoming Challenges and Future Outlook

Looking ahead, Andrew Fulmer, Chief Financial Officer, provided insights into the anticipated challenges for the third quarter and the current fiscal year. He noted previous fiscal year's order accelerations created complex comparisons for fiscal 2026. Forecasting from this context, Fulmer expects an approximate 13% to 14% reduction in net sales compared to last year, with an underlying net sales decline around 5%, which is regarded as a positive outcome given the circumstances.

Halfway through fiscal 2026, the company remains committed to delivering consistent and impactful financial performance despite facing market headwinds caused by changing tariffs and consumer behavior. Fulmer concluded, "We foresee our gross margin for this year to stabilize between 42% to 43% while adjusting EBITDA for the full year is projected within 4.0% to 4.5% of net sales."

As American Outdoor Brands prepares for its upcoming conference call set for today, December 9, 2025, the management anticipates discussing operational results further along with their innovative outlook that positions them as a competitive entity in the outdoor product market.