American Outdoor Brands, Inc. (AOUT) Q2 2026 Earnings Call Transcript

Net Sales $57.2 million, a decrease of 5% year-over-year. The decline was attributed to lower sales in both the Outdoor Lifestyle and Shooting Sports categories, driven by decreases in meat processing equipment and gun cleaning/personal protection products, partially offset by increases in BOG, Grilla, and Caldwell brands.

Outdoor Lifestyle Category Net Sales $34.6 million, down 5% year-over-year. The decrease was mainly driven by a decline in meat processing equipment sales, partially offset by increases in BOG and Grilla brands.

Shooting Sports Category Net Sales Declined 5.1% year-over-year. The decrease was driven by lower sales in gun cleaning and personal protection products, partially offset by strong sales in the Caldwell brand due to expanded distribution of innovative products like the Caldwell ClayCopter.

Traditional Channel Net Sales Increased by 2.3% year-over-year. This growth was aligned with strong POS results and reflects the performance of brands across the omnichannel landscape.

E-commerce Channel Net Sales Decreased by 15.9% year-over-year. The decline was attributed to lower sales to the largest online-only e-commerce partner, partially offset by digital sales through traditional retailers' online platforms.

Gross Margin 45.6%, compared to 48% in the prior year. The decline was due to actions taken to clear slow-moving inventory. Without this action, gross margin would have been approximately 150 basis points higher.

GAAP Operating Expenses $24 million, compared to $25.8 million in the prior year. The decrease was driven by lower variable costs from the decrease in net sales and lower intangible amortization.

Non-GAAP Operating Expenses $21.3 million, compared to $22.7 million in the prior year. Non-GAAP operating expenses exclude intangible amortization, stock compensation, and certain nonrecurring expenses.

GAAP EPS $0.16, compared to $0.24 in the prior year. The decline reflects lower net sales and profitability.

Non-GAAP EPS $0.29, compared to $0.37 in the prior year. The decline reflects lower net sales and profitability.

Adjusted EBITDA $6.5 million, compared to $7.5 million in the prior year. This represents 11.3% of net sales, down slightly year-over-year.

Inventory Levels $124 million, up $12.4 million year-over-year. The increase was driven entirely by $14 million of incremental tariffs capitalized into inventory, while base inventory declined by $1.6 million.

Cash and Debt $3.1 million in cash and no debt. The company repurchased $662,000 of common stock during the quarter.