On June 27, 2024, American Outdoor Brands Inc (AOUT, Financial) released its 8-K filing detailing the financial results for the fourth quarter and full fiscal year 2024, ending April 30, 2024. American Outdoor Brands Inc is engaged in providing outdoor products and accessories for hunting, fishing, camping, shooting, and personal security and defense products.
Fiscal Year 2024 Financial Highlights
American Outdoor Brands Inc reported full-year net sales of $201.1 million, marking a 5.2% increase compared to the previous year's $191.2 million. This growth was driven by a 12.3% increase in traditional channel sales, partially offset by a 3.3% decline in e-commerce sales. The company's gross margin for the year was 44.0%, down from 46.1% the previous year, impacted by higher inventory purchase costs and promotional discounts.
Despite the revenue growth, American Outdoor Brands Inc reported a GAAP net loss of $12.2 million, or ($0.94) per diluted share, compared to a net loss of $12.0 million, or ($0.90) per diluted share, in the prior year. On a non-GAAP basis, the company achieved a net income of $4.3 million, or $0.32 per diluted share, down from $6.6 million, or $0.48 per diluted share, the previous year.
Quarterly Performance
For the fourth quarter, the company reported net sales of $46.3 million, a 9.7% increase from $42.2 million in the same quarter last year. Traditional channel sales surged by 26.3%, while e-commerce sales declined by 9.6%. The quarterly gross margin was 41.9%, compared to 45.2% in the same period last year.
The quarterly GAAP net loss was $5.3 million, or ($0.42) per diluted share, compared to a net loss of $3.8 million, or ($0.29) per diluted share, in the same quarter last year. On a non-GAAP basis, the company reported a net loss of $45,000, or $0.00 per diluted share, compared to a non-GAAP net income of $793,000, or $0.06 per diluted share, in the same quarter last year.
Key Financial Metrics
| Metric | FY 2024 | FY 2023 |
|---|---|---|
| Net Sales | $201.1 million | $191.2 million |
| Gross Margin | 44.0% | 46.1% |
| GAAP Net Loss | ($12.2 million) | ($12.0 million) |
| Non-GAAP Net Income | $4.3 million | $6.6 million |
| Operating Cash Flow | $24.5 million | Not Provided |
Management Commentary
"I am very pleased with our performance for fiscal 2024, a year in which we delivered year-over-year net sales growth that exceeded our expectations and achieved several strategic milestones which, we believe, position our company and our brands well for the future," said Brian Murphy, President and Chief Executive Officer.
"In fiscal 2024, we grew our business, invested in our future, and demonstrated disciplined capital management. We delivered net sales growth, strengthened our balance sheet, lowered our product inventories both internally and within the channel, and continued to return cash to stockholders through our share repurchase program," added Andrew Fulmer, Chief Financial Officer.
Balance Sheet and Cash Flow
As of April 30, 2024, American Outdoor Brands Inc reported cash and cash equivalents of $29.7 million, up from $21.95 million the previous year. The company has no debt after paying down its line of credit to zero and repurchasing $6.0 million of its common stock during the year. Total assets stood at $240.6 million, slightly down from $243.6 million the previous year.
Analysis and Outlook
American Outdoor Brands Inc's performance in fiscal 2024 highlights its resilience and ability to grow despite challenges such as higher inventory costs and promotional discounts. The company's focus on innovation and expanding its market reach, both domestically and internationally, has contributed to its revenue growth. However, the decline in e-commerce sales and the overall net loss indicate areas that need attention.
Looking ahead, the company's strategic initiatives, including new product launches and market expansion, are expected to drive future growth. The strong balance sheet and cash position provide a solid foundation for continued investment in growth opportunities.
For more detailed financial information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from American Outdoor Brands Inc for further details.
