American Outdoor Brands Q4 margin surges on inventory management

American Outdoor Brands

25/06/2026 21:22

Overview
Outdoor products maker's Q4 net sales fell 24% yr/yr, adjusted for timing down 9.2%
Q4 adjusted EPS was $0.13, unchanged from prior year
Company expects fiscal 2027 net sales to rise 5%-10%

Outlook
Company expects fiscal 2027 net sales of $200 mln to $210 mln, up 5%-10% from 2026
Company sees fiscal 2027 adjusted EBITDA margin at 6.5% to 7.5% of net sales
Company says improving retail inventory and brand strength support outlook for growth in 2027

Result Drivers
ORDER TIMING - Co said Q4 sales decline was partly due to $10 mln of retailer orders accelerated into prior quarter ahead of tariff-related price actions
GROSS MARGIN IMPROVEMENT - Q4 gross margin rose to 46.9% from 40.9% yr/yr, supported by supply chain flexibility and inventory management
CATEGORY PERFORMANCE - Co reported POS growth in Outdoor Lifestyle and Shooting Sports categories, up 7% and 1% yr/yr, respectively

Company press release: ID:nPnc05pbPa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Miss
$47.06 mln
$48.44 mln (2 Analysts)
Q4 Adjusted EPS
Beat
$0.13
-$0.005 (2 Analysts)
Q4 Net Income
 
-$381,000
 
Q4 Gross Profit
 
$22.06 mln
 
Q4 Operating Expenses
 
$22.42 mln
 
Q4 Operating Income
 
-$359,000
 

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 $12.50, about 21.5% above its June 24 closing price of $10.29
The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 31 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)