On September 5, 2024, American Outdoor Brands Inc (AOUT, Financial) released its 8-K filing detailing the financial results for the first quarter of fiscal 2025, which ended on July 31, 2024. American Outdoor Brands Inc is engaged in providing outdoor products and accessories for hunting, fishing, camping, shooting, and personal security and defense products.
Performance Overview
American Outdoor Brands Inc reported quarterly net sales of $41.6 million, a 4.1% decrease from the $43.4 million reported in the same quarter last year. This figure slightly missed the analyst estimate of $41.08 million. The company's GAAP gross margin remained steady at 45.4%, consistent with the same period last year.
The company reported a GAAP net loss of $2.4 million, or ($0.18) per diluted share, an improvement from the previous year's GAAP net loss of $4.1 million, or ($0.31) per diluted share. This result was better than the analyst estimate of -$0.27 per share. On a non-GAAP basis, the company achieved a net income of $748,000, or $0.06 per diluted share, compared to $98,000, or $0.01 per diluted share, in the prior year.
Key Financial Metrics
American Outdoor Brands Inc's financial achievements for the quarter include:
- Net sales of $41.6 million
- GAAP gross margin of 45.4%
- Traditional channel sales of $25.1 million
- E-commerce channel sales of $16.5 million
- International net sales of $4.4 million, up 21% year-over-year
Adjusted EBITDAS for the quarter was $2.0 million, or 4.8% of net sales, compared to $1.1 million, or 2.6% of net sales, in the prior year. This represents a significant increase of more than 76% in Adjusted EBITDAS.
Income Statement and Balance Sheet Highlights
| Metric | Q1 FY2025 | Q1 FY2024 |
|---|---|---|
| Net Sales | $41.6 million | $43.4 million |
| GAAP Gross Margin | 45.4% | 45.4% |
| GAAP Net Loss | ($2.4 million) | ($4.1 million) |
| Non-GAAP Net Income | $748,000 | $98,000 |
| Adjusted EBITDAS | $2.0 million | $1.1 million |
Commentary and Analysis
Brian Murphy, President and Chief Executive Officer, said, “Net sales results for our first quarter came in as expected, declining slightly year-over-year, driven by a combination of order timing and recent trends in certain consumer markets. Nevertheless, I am pleased with our performance, which included a significant increase of more than 76% in Adjusted EBITDAS, and reflected a consumer preference for innovative products from our popular brands in Outdoor Lifestyle and Shooting Sports categories.”
Murphy highlighted the importance of new product innovation and expanded distribution opportunities as core to the company's long-term growth strategy. New products launched within the past 24 months generated 23% of net sales in the first quarter.
Andrew Fulmer, Chief Financial Officer, added, “Our balance sheet remained strong in the first quarter, and we continued to demonstrate disciplined capital management. We ended the quarter with $23.5 million in cash and no debt after replenishing our inventories in preparation for the fall hunting and holiday seasons, and after repurchasing our common stock during the quarter.”
Conclusion
American Outdoor Brands Inc's first quarter fiscal 2025 results reflect a mixed performance with net sales slightly below expectations but improved profitability metrics. The company's focus on innovation and expanded distribution channels appears to be paying off, as evidenced by the significant increase in Adjusted EBITDAS and strong international sales growth. Investors will be keen to see how the company navigates the challenges in the Shooting Sports category and leverages its new product pipeline for future growth.
Explore the complete 8-K earnings release (here) from American Outdoor Brands Inc for further details.
