American Outdoor Brands, Inc. (AOUT) reported second‑quarter fiscal 2026 results that included net sales of $57.2 million, a 5% year‑over‑year decline, and a gross margin of 45.6%, down 240 basis points from the prior year’s 48.0%. The company repurchased 74,000 shares for $662,000 and closed the quarter with $3.1 million in cash, remaining debt‑free.
Revenue exceeded consensus estimates of $50.7 million, driven largely by a 31% contribution from new products and strong performance of the Caldwell ClayCopter and Claymore lines. Point‑of‑sale activity rose 4% year‑over‑year, indicating robust demand for the company’s latest offerings even as overall sales slipped.
Margin compression was largely attributable to higher tariff and freight costs and intensified promotional activity, compounded by inventory clearance efforts. Management noted that these cost pressures are expected to ease in fiscal 2027 as tariff mitigation actions take effect, suggesting a temporary impact on profitability.
GAAP earnings per share were $0.16, down from $0.24 in the same quarter last year, while non‑GAAP EPS was $0.29 versus $0.37 a year earlier. The figures fell short of the prior year’s performance but still beat the consensus estimate of $0.17, reflecting the company’s ability to control costs amid a weaker sales mix.
Full‑year guidance calls for net sales to decline 13‑14% from the prior year’s $222 million, incorporating a $10 million order pull‑forward. Management projected a gross margin of 42‑43% for the year, signaling continued margin pressure but confidence that the company’s innovation pipeline and cost discipline will sustain profitability.
CEO Brian Murphy emphasized that the company’s “innovation pipeline is the strongest in its history” and that strong retail sell‑through demonstrates resilience in a cautious retail environment. CFO Andrew Fulmer highlighted the company’s disciplined execution and the impact of inventory clearance on the quarter’s results. Investors responded positively to the revenue beat and management’s optimistic outlook, with analysts noting the company’s ability to navigate headwinds while maintaining a focus on growth.
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