American Outdoor Brands Q2 sales beat expectations

American Outdoor Brands

09/12/2025 21:18

Corrects Q2 operating expenses and income figures from thousands to millions in Key Details table; removes reference to estimates throughout

Overview

Outdoor products firm's fiscal Q2 net sales fell 5% yr/yr

Adjusted EBITDA for fiscal Q2 declined yr/yr

Company repurchased 74,000 shares for $662,000

Outlook

Company expects full-year net sales to decline 13% to 14% from last year's $222 mln

Company anticipates third-quarter net sales to decline approximately 8% year over year

Company projects gross margin for full year and third quarter in range of 42% to 43%

Result Drivers

INNOVATION AND NEW PRODUCTS - New products accounted for over 31% of net sales, showcasing the strength of the company's innovation pipeline

RETAIL ENGAGEMENT - Strong retail engagement and late-quarter orders contributed to results, despite a challenging retail environment

COST MANAGEMENT - Gross margins were impacted by clearing slow-moving inventory and higher tariff and freight costs

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
$57.20 mln
Q2 Net Income
$2.1 mln
Q2 Gross Profit
$26.10 mln
Q2 Operating Expenses
$24.01 mln
Q2 Operating Income
$2.09 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the recreational products peer group is "buy"

Wall Street's median 12-month price target for American Outdoor Brands Inc is $15.25, about 111.8% above its December 8 closing price of $7.20

The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 25 three months ago

Press Release: ID:nPn5gfCKFa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)