American Outdoor Brands Inc
For the period ended Jan 31, 2025. Filed Mar 6, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jan 31, 2025 · Filed Mar 6, 2025
AOUT$17.31+0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-10-31; filed 2024-12-05.
0000950170-24-133687
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-01-31; filed 2025-03-06.
0000950170-25-034660
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 77 previous paragraphs and 77 current paragraphs.
34 unchanged; 38 reworded; 5 added; 5 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 18 previous and 18 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (5)
Current report
Third Quarter Fiscal 2025 Highlights
Current report
Gross margin was 44.7%, an increase of 200 basis points, over the comparable quarter last year.
Current report
Gross margin was 46.1%, an increase of 150 basis points, over the prior year comparable period.
Current report
Net sales in our e-commerce channel increased $2.4 million, or 9.5%, over the comparable quarter last year, primarily because of increased net sales to the world's largest online retailer and from direct-to-consumer net sales on our websites. E-commerce channel net sales increased primarily because of higher net sales of rugged outdoor and hunting products in our outdoor lifestyle category as well as increased shooting accessories net sales in our shooting sports category, partially offset by lower personal protection net sales.
Current report
The following table sets forth certain information regarding operating income/(loss) for the nine months ended January 31, 2025 and 2024 (dollars in thousands):
Removed paragraphs (5)
Previous report
Second Quarter Fiscal 2025 Highlights
Previous report
Gross margin was 48.0%, an increase of 230 basis points, over the comparable quarter last year.
Previous report
Gross margin was 47.0%, an increase of 140 basis points, over the prior year comparable period.
Previous report
Net sales in our e-commerce channel increased $820,000, or 3.5%, over the comparable quarter last year, primarily because of increased outdoor lifestyle category net sales for our hunting products to online retailers and direct-to-consumer sales of our outdoor cooking products, partially offset by lower net sales in our shooting sports category.
Previous report
The following table sets forth certain information regarding operating income/(loss) for the six months ended October 31, 2024 and 2023 (dollars in thousands):
Reworded paragraphs (38)
Previous wording
The following discussion and analysis of our financial condition and results of operations for the three and six months ended October 31, 2024 and 2023 should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for fiscal year ended April 30, 2024. This discussion and analysis should also be read in conjunction with our unaudited condensed consolidated financial statements and the notes thereto included in Item 1 of this Quarterly Report on Form 10-Q.
Current wording
The following discussion and analysis of our financial condition and results of operations for the three and nine months ended January 31, 2025 and 2024 should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for fiscal year ended April 30, 2024. This discussion and analysis should also be read in conjunction with our unaudited condensed consolidated financial statements and the notes thereto included in Item 1 of this Quarterly Report on Form 10-Q.
Previous wording
Net sales were $60.2 million, an increase of $2.3 million or 4.0%, over the comparable quarter last year, primarily because of increased net sales in our outdoor lifestyle category.
Current wording
Net sales were $58.5 million, an increase of $5.1 million or 9.5%, over the comparable quarter last year, primarily because of increased net sales in our outdoor lifestyle category.
Previous wording
Net income was $3.1 million, or $0.24 per diluted share, compared with net income of $77,000, or $0.01 per diluted share, for the comparable quarter last year.
Current wording
Net income was $169,000, or $0.01 per diluted share, compared with a net loss of $2.9 million, or $0.23 per diluted share, for the comparable quarter last year.
Previous wording
Non-GAAP Adjusted EBITDAS was $7.5 million for the three months ended October 31, 2024 compared with $5.2 million for the three months ended October 31, 2023. See non-GAAP financial measure disclosures below for our reconciliation of non-GAAP Adjusted EBITDAS.
Current wording
Non-GAAP Adjusted EBITDAS was $4.7 million for the three months ended January 31, 2025 compared with $2.4 million for the three months ended January 31, 2024. See non-GAAP financial measure disclosures below for our reconciliation of non-GAAP Adjusted EBITDAS.
Previous wording
Our operating results for the six months ended October 31, 2024 included the following:
Current wording
Our operating results for the nine months ended January 31, 2025 included the following:
Previous wording
Net sales were $101.9 million, an increase of $499,000, or 0.5%, over the prior year comparable period, primarily because of increased net sales in our outdoor lifestyle category.
Current wording
Net sales were $160.4 million, an increase of $5.6 million, or 3.6%, over the prior year comparable period, primarily because of increased net sales in our outdoor lifestyle category.
Previous wording
Net income was $746,000, or $0.06 per diluted share, compared with a net loss of $4.0 million, or $0.31 per diluted share, for the prior year comparable period.
Current wording
Net income was $915,000, or $0.07 per diluted share, compared with a net loss of $6.9 million, or $0.53 per diluted share, for the prior year comparable period.
Previous wording
Non-GAAP Adjusted EBITDAS was $9.5 million for the six months ended October 31, 2024 compared with $6.4 million for the six months ended October 31, 2023. See non-GAAP financial measure disclosures below for our reconciliation of non-GAAP Adjusted EBITDAS.
Current wording
Non-GAAP Adjusted EBITDAS was $14.2 million for the nine months ended January 31, 2025 compared with $8.7 million for the nine months ended January 31, 2025. See non-GAAP financial measure disclosures below for our reconciliation of non-GAAP Adjusted EBITDAS.
Previous wording
For the three months ended October 31, 2024, total net sales increased $2.3 million, or 4.0%, over the comparable quarter last year primarily because of an increase in hunting product net sales in our domestic channel and shooting accessory net sales in our international channel.
Current wording
For the three months ended January 31, 2025, total net sales increased $5.1 million, or 9.5%, over the comparable quarter last year primarily because of an increase in hunting and rugged outdoor product net sales in our domestic channel.
Previous wording
Net sales in our traditional channels increased $1.5 million, or 4.3%, over the comparable quarter last year. Traditional channel net sales increased primarily because of higher net sales of shooting accessories in our shooting sports category and higher net sales of our hunting products in our outdoor lifestyle category, partially offset by lower net sales of rugged outdoor products in our outdoor lifestyle category. In addition, our international net sales increased $436,000, or 14.8%, over the comparable quarter last year as a result of increased sales in Canada.
Current wording
Net sales in our traditional channels increased $2.7 million, or 9.6%, over the comparable quarter last year. Traditional channel net sales increased primarily because of higher net sales of rugged outdoor and hunting products net sales in our outdoor lifestyle category as well as increased personal protection product net sales in our shooting sports category.
Previous wording
New products, which we define as any SKU introduced over the prior two fiscal years, represented 21.5% of net sales for the three months ended October 31, 2024.
Current wording
New products, which we define as any SKU introduced over the prior two fiscal years, represented 18.1% of net sales for the three months ended January 31, 2025.
Previous wording
Gross margin for the three months ended October 31, 2024 increased 230 basis points over the comparable quarter last year, primarily from lower promotional product discounts due to timing of promotions with our customers and lower inbound freight costs.
Current wording
Gross margin for the three months ended January 31, 2025 increased 200 basis points over the comparable quarter last year, primarily because of higher sales volumes and lower inbound freight costs, partially offset by increased promotional product discounts.
Previous wording
The following table sets forth certain information regarding consolidated net sales and gross profit for the six months ended October 31, 2024 and 2023 (dollars in thousands):
Current wording
The following table sets forth certain information regarding consolidated net sales and gross profit for the nine months ended January 31, 2025 and 2024 (dollars in thousands):
Previous wording
The following table sets forth certain information regarding trade channel net sales for the six months ended October 31, 2024 and 2023 (dollars in thousands):
Current wording
The following table sets forth certain information regarding trade channel net sales for the nine months ended January 31, 2025 and 2024 (dollars in thousands):
Previous wording
The following table sets forth certain information regarding geographic makeup of net sales included in the above table for the six months ended October 31, 2024 and 2023 (dollars in thousands):
Current wording
The following table sets forth certain information regarding geographic makeup of net sales included in the above table for the nine months ended January 31, 2025 and 2024 (dollars in thousands):
Previous wording
The following table sets forth certain information regarding net sales categories for the six months ended October 31, 2024 and 2023 (dollars in thousands):
Current wording
The following table sets forth certain information regarding net sales categories for the nine months ended January 31, 2025 and 2024 (dollars in thousands):
Previous wording
For the six months ended October 31, 2024, total net sales increased $499,000, or 0.5%, over the prior year comparable period primarily because of an increase in shooting accessory net sales to international retailers.
Current wording
For the nine months ended January 31, 2025, total net sales increased $5.6 million, or 3.6%, over the prior year comparable period primarily because of an increase in hunting and shooting accessories product net sales in our domestic channel as well as shooting accessories product net sales to international retailers.
Previous wording
Net sales in our e-commerce channel decreased $1.1 million, or 2.5%, from the prior year comparable period, primarily because of lower direct-to-consumer net sales for products sold on our e-commerce platform, specifically from lower outdoor cooking net sales in our outdoor lifestyle category. In addition, our E-commerce channel net sales decreased from lower personal protection and shooting sports accessories product net sales in our shooting sports category, partially offset by higher hunting and fishing product net sales in our outdoor lifestyle category.
Current wording
Net sales in our e-commerce channel increased $1.3 million, or 1.9%, over the prior year comparable period primarily because of increased net sales to the world's largest online retailer. E-commerce channel net sales increased primarily because of higher hunting and fishing product net sales in our outdoor lifestyle category as well as increased shooting accessories product net sales in our shooting sports category, partially offset by lower personal protection product net sales in our shooting sports category and lower outdoor cooking net sales in our outdoor lifestyle category.
Previous wording
Net sales in our traditional channels increased $1.6 million, or 2.6%, over the prior year comparable period. Traditional channel net sales increased primarily because of higher net sales of shooting accessories in our shooting sports category and higher net sales of our hunting products in our outdoor lifestyle category. In addition, our international net sales increased $1.2 million, or 18.3%, over the prior year comparable period as a result of increased sales in Canada. The increased net sales in our traditional channel was partially offset by lower personal protection net sales in our shooting sports category and lower rugged outdoor and fishing products in our outdoor lifestyle category.
Current wording
Net sales in our traditional channels increased $4.3 million, or 4.9%, over the prior year comparable period. Traditional channel net sales increased primarily because of higher net sales of shooting accessories in our shooting sports category and higher net sales of our hunting products in our outdoor lifestyle category. In addition, our international net sales increased $1.1 million, or 12.5%, over the prior year comparable period as a result of increased sales in Canada. The increased net sales in our traditional channel was partially offset by lower personal protection net sales in our shooting sports category and lower rugged outdoor and fishing products in our outdoor lifestyle category.
Previous wording
New products, which we define as any SKU introduced over the prior two fiscal years, represented 22.7% of net sales for the six months ended October 31, 2024.
Current wording
New products, which we define as any SKU introduced over the prior two fiscal years, represented 21.0% of net sales for the nine months ended January 31, 2025.
Previous wording
Gross margin for the six months ended October 31, 2024 increased 140 basis points over the prior year comparable period, primarily from lower promotional product discounts due to timing of promotions with our customers and lower inbound freight costs.
Current wording
Gross margin for the nine months ended January 31, 2025 increased 150 basis points over the prior year comparable period, primarily because of higher sales volumes and lower inbound freight costs.
Previous wording
Research and development expenses increased $191,000 over the comparable quarter last year, primarily from higher consulting and third party service expenses. Selling, marketing, and distribution expenses decreased $441,000 from the comparable quarter last year mainly because of lower advertising expense, partially offset by higher rent expense. General and administrative expenses decreased $425,000 from the comparable quarter last year, primarily because of lower legal and consulting expense and lower acquired intangible asset amortization expense, partially offset by higher employee compensation-related expenses.
Current wording
Research and development expenses increased $155,000 over the comparable quarter last year, primarily from higher consulting and third party service expenses. Selling, marketing, and distribution expenses increased $555,000 from the comparable quarter last year mainly because of higher rent and sales-volume related expenses, partially offset by labor efficiencies gained as a result of occupying the full warehouse facility following our assumption of the lease in January 2024. General and administrative expenses decreased $607,000 from the comparable quarter last year, primarily because of lower legal and consulting expense and lower acquired intangible asset amortization expense, partially offset by higher employee compensation-related expenses.
Previous wording
The following table sets forth certain information regarding operating expenses for the six months ended October 31, 2024 and 2023 (dollars in thousands):
Current wording
The following table sets forth certain information regarding operating expenses for the nine months ended January 31, 2025 and 2024 (dollars in thousands):
Previous wording
Research and development expenses increased $266,000 over the prior year comparable period, primarily from higher consulting and third party service expenses. Selling, marketing, and distribution expenses decreased $1.1 million from the prior year comparable period mainly because of lower advertising expense. General and administrative expenses decreased $2.1 million from the prior year comparable period, primarily because of lower legal and consulting expense and lower acquired intangible asset amortization expense.
Current wording
Research and development expenses increased $422,000 over the prior year comparable period, primarily from higher consulting and third party service expenses. Selling, marketing, and distribution expenses decreased $557,000 from the prior year comparable period mainly because of lower advertising expense. General and administrative expenses decreased $2.7 million from the prior year comparable period, primarily because of lower legal and consulting expense and lower acquired intangible asset amortization expense.
Previous wording
Operating income/(loss) for the three months ended October 31, 2024 was $3.1 million higher as compared to the comparable quarter last year primarily from higher gross margins as a result of higher net sales volume and lower promotional product discounts as well as lower operating expenses mentioned above.
Current wording
Operating income/(loss) for the three months ended January 31, 2025 was $3.2 million higher as compared to the comparable quarter last year primarily from higher gross margins as a result of higher net sales volume and lower inbound freight costs.
Previous wording
Operating income/(loss) for the six months ended October 31, 2024 was $4.6 million higher as compared to the prior year comparable period primarily from lower promotional product discounts and lower operating expenses mentioned above.
Current wording
Operating income/(loss) for the nine months ended January 31, 2025 was $7.8 million higher as compared to the prior year comparable period primarily from higher net sales volume, lower inbound freight costs, and lower operating expenses mentioned above.
Previous wording
We recorded income tax expense of $34,000 for the six months ended October 31, 2024 compared with income tax expense of $15,000 for the prior year comparable period. The income tax expense recorded for the six months ended October 31, 2024 and 2023 was primarily due to a full valuation allowance recorded against our deferred tax assets.
Current wording
We recorded income tax expense of $58,000 for the three months ended January 31, 2025 compared with income tax expense of $13,000 for the prior year comparable period. The income tax expense recorded for the three months ended January 31, 2025 and 2024 was primarily due to a full valuation allowance recorded against our deferred tax assets.
Previous wording
The following table sets forth certain information regarding income tax benefit for the six months ended October 31, 2024 and 2023 (dollars in thousands):
Current wording
The following table sets forth certain information regarding income tax benefit for the nine months ended January 31, 2025 and 2024 (dollars in thousands):
Previous wording
We recorded income tax expense of $12,000 for the three months ended October 31, 2024 compared with an income tax benefit of $40,000 for the comparable quarter last year. The income tax expense/(benefit) recorded for the three months ended October 31, 2024 and 2023 was primarily due to a full valuation allowance recorded against our deferred tax assets.
Current wording
We recorded income tax expense of $92,000 for the nine months ended January 31, 2025 compared with income tax expense of $28,000 for the prior year comparable period. The income tax expense recorded for the nine months ended January 31, 2025 and 2024 was primarily due to a full valuation allowance recorded against our deferred tax assets.
Previous wording
Net income was $3.1 million, or $0.24 per diluted share, for the three months ended October 31, 2024 compared with net income of $77,000, or $0.01 per share, for the comparable quarter last year. The increased net income was primarily related to increased net sales volume and lower promotional product discounts as well as lower operating expenses during the three months ended October 31, 2024 as compared to the three months ended October 31, 2023.
Current wording
Net income was $169,000, or $0.01 per diluted share, for the three months ended January 31, 2025 compared with a net loss of $2.9 million, or $0.23 loss per share, for the comparable quarter last year. The increased net income was primarily related to increased net sales volume and lower inbound freight costs during the three months ended January 31, 2025 as compared to the three months ended January 31, 2024.
Previous wording
The following table sets forth certain information regarding net income and the related per share data for the six months ended October 31, 2024 and 2023 (dollars in thousands, except per share data):
Current wording
The following table sets forth certain information regarding net income and the related per share data for the nine months ended January 31, 2025 and 2024 (dollars in thousands, except per share data):
Previous wording
Net income was $746,000, or $0.06 per diluted share, for the six months ended October 31, 2024 compared with net loss of $4.0 million, or $0.31 per share, for the prior year comparable period. The increased net income was primarily related to increased net sales volume and lower promotional product discounts as well as lower operating expenses during the six months ended October 31, 2024 as compared to the six months ended October 31, 2023.
Current wording
Net income was $915,000, or $0.07 per diluted share, for the nine months ended January 31, 2025 compared with a net loss of $6.9 million, or $0.53 loss per share, for the prior year comparable period. The increased net income was primarily related to increased net sales volume, lower inbound freight costs, and lower operating expenses during the nine months ended January 31, 2025 as compared to the nine months ended January 31, 2024.
Previous wording
The following table sets forth our calculation of non-GAAP Adjusted EBITDAS for the three and six months ended October 31, 2024 and 2023, respectively (dollars in thousands):
Current wording
The following table sets forth our calculation of non-GAAP Adjusted EBITDAS for the three and nine months ended January 31, 2025 and 2024, respectively (dollars in thousands):
Previous wording
The following table sets forth certain cash flow information for the six months ended October 31, 2024 and 2023 (dollars in thousands):
Current wording
The following table sets forth certain cash flow information for the nine months ended January 31, 2025 and 2024 (dollars in thousands):
Previous wording
Cash used in operating activities was $12.3 million for the six months ended October 31, 2024 compared with cash used by operating activities of $3.2 million for the six months ended October 31, 2023. Cash used by operating activities for the six months ended October 31, 2024 was primarily impacted by $17.6 million of higher accounts receivable, primarily due to timing of customer shipments in the second half of our second fiscal quarter and $18.3 million of increased inventory. The increase in inventory was a result of planned increase in purchases to prepare for the fall and winter hunting and holiday seasons. The cash usage for the six months ended October 31, 2024 was partially offset by a $10.6 million increase in accounts payable due to the timing of inventory purchases as we built our inventory balances higher during our second fiscal quarter and $3.0 million of increase accrued expenses related to the timing of outbound freight accruals and higher sales volume-related accruals.
Current wording
Cash used in operating activities was $6.4 million for the nine months ended January 31, 2025 compared with cash provided by operating activities of $9.8 million for the nine months ended January 31, 2024. Cash used by operating activities for the nine months ended January 31, 2025 was primarily impacted by $5.9 million of higher accounts receivable, primarily due to increased sales volumes and timing of customer shipments and $22.5 million of increased inventory. The increase in inventory was a result of planned increase in purchases to prepare new product launches later in the fiscal year. The cash usage for the nine months ended January 31, 2025 was partially offset by a $3.8 million increase in accounts payable due to the timing of inventory purchases as we built our inventory balances higher during our third fiscal quarter, $3.1 million lower prepaid expenses and other current assets from lower deposits on inventory with our suppliers, and $1.9 million of increase accrued expenses related to the timing of outbound freight accruals and higher sales volume-related accruals.
Previous wording
Cash used in investing activities was $1.6 million during the six months ended October 31, 2024, flat as compared the prior year comparable period. We expect to spend approximately $3.5 million to $4.5 million of capital expenditures in fiscal 2025, a decrease of $1.5 million to $2.5 million from the $6.0 million we spent in fiscal 2024, a year in which we spent $2.9 million on capital expenditures as a result of the lease assignment of the full building at our headquarters in Columbia, Missouri.
Current wording
Cash used in investing activities was $3.4 million during the nine months ended January 31, 2025, a decrease of $1.9 million as compared the prior year comparable period. We expect to spend approximately $4.0 million to $4.5 million of capital expenditures in fiscal 2025, a decrease of $2.0 million to $2.5 million from the $6.0 million we spent in fiscal 2024, a year in which we spent $2.9 million on capital expenditures as a result of the lease assignment of the full building at our headquarters in Columbia, Missouri.
Previous wording
Cash used in financing activities was $1.6 million for the six months ended October 31, 2024, primarily from $1.4 million used to repurchase 153,497 shares of our common stock.
Current wording
Cash used in financing activities was $2.8 million for the nine months ended January 31, 2025, primarily from $2.6 million used to repurchase 270,587 shares of our common stock.
Previous wording
We had $14.2 million of cash equivalents on hand as of October 31, 2024 and had $29.7 million in cash and cash equivalents on hand as of April 30, 2024.
Current wording
We had $17.1 million of cash equivalents on hand as of January 31, 2025 and had $29.7 million in cash and cash equivalents on hand as of April 30, 2024.