American Outdoor Brands, Inc.
For the period ended Jul 31, 2025. Filed Sep 4, 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.
Jul 31, 2025 · Filed Sep 4, 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 2025-01-31; filed 2025-03-06.
0000950170-25-034660
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-07-31; filed 2025-09-04.
0001808997-25-000035
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 57 current paragraphs.
28 unchanged; 18 reworded; 9 added; 20 removed; 11 previous and 2 current paragraphs rearranged.
Tables are not compared: 18 previous and 10 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 (9)
Current report
First Quarter Fiscal 2026 Highlights
Current report
•Net sales were $29.7 million, a decrease of $11.9 million or 28.7%, from the comparable quarter last year.
Current report
•Gross margin was 46.7%, an increase of 130 basis points, over the comparable quarter last year.
Current report
For the three months ended July 31, 2025, total net sales decreased $11.9 million, or 28.7%, from the comparable quarter last year. We believe the decrease in net sales was primarily a result of certain customers in our traditional channel accelerating into our fourth fiscal quarter of 2025 orders that we had originally planned to receive in our first fiscal quarter of 2026, which we believe was due to the anticipated increased costs associated with tariffs imposed by the U.S. administration in March and April of 2025. The decrease in net sales was partially offset by price increases on our products to mitigate the additional tariff costs.
Current report
Net sales in our e-commerce channel decreased $5.8 million, or 35.2%, from the comparable quarter last year, primarily because of lower net sales to the world's largest online retailer that resulted in lower net sales for the majority of our product categories.
Current report
Net sales in our traditional channels decreased $6.1 million, or 24.4%, from the comparable quarter last year, which we believe is from acceleration of orders into our fourth fiscal quarter of 2025, as mentioned above. Traditional channel net sales decreased primarily because of lower net sales of the majority of our product categories, partially offset by higher personal protection product sales in our shooting sports category and meat processing product sales in our outdoor lifestyle category.
Current report
Operating Loss
Current report
The following table sets forth certain information regarding operating loss for the three months ended July 31, 2025 and 2024 (dollars in thousands):
Removed paragraphs (20)
Previous report
Third Quarter Fiscal 2025 Highlights
Previous report
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 report
Gross margin was 44.7%, an increase of 200 basis points, over the comparable quarter last year.
Previous report
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 report
Gross margin was 46.1%, an increase of 150 basis points, over the prior year comparable period.
Previous report
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 report
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 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.
Previous report
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 report
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 report
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 report
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 report
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 report
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 report
Operating Income/(Loss)
Previous report
The following table sets forth certain information regarding operating income/(loss) for the three months ended January 31, 2025 and 2024 (dollars in thousands):
Previous 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):
Previous report
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 report
Net Income/(Loss)
Previous report
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.
Reworded paragraphs (18)
Previous 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.
Current wording
The following discussion and analysis of our financial condition and results of operations for the three months ended July 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, 2025. 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 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.
Current wording
•Net loss was $6.8 million, or $(0.54) per diluted share, compared with a net loss of $2.4 million, or $(0.18) per diluted share, for the comparable quarter last year.
Previous 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.
Current wording
•Non-GAAP Adjusted EBITDA was a loss of $3.3 million for the three months ended July 31, 2025 compared with earnings of $748,000 for the three months ended July 31, 2024. See non-GAAP financial measure disclosures below for our reconciliation of non-GAAP Adjusted EBITDA.
Previous 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.
Current wording
New products, which we define as any SKU introduced over the prior two fiscal years, represented 28.8% of net sales for the three months ended July 31, 2025.
Previous 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.
Current wording
Gross margin for the three months ended July 31, 2025 increased 130 basis points over the comparable quarter last year, primarily because of the price increases mentioned above.
Previous 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.
Current wording
Research and development expenses increased $281,000 over the comparable quarter last year, primarily from higher depreciation and employee compensation-related expenses. Selling, marketing, and distribution expenses decreased $863,000 from the comparable quarter last year mainly because of lower sales-volume related expenses. General and administrative expenses decreased $241,000 from the comparable quarter last year, primarily because of lower depreciation and acquired intangible amortization expense.
Previous 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.
Current wording
Operating loss for the three months ended July 31, 2025 was $4.3 million higher as compared to the comparable quarter last year primarily from lower net sales volume and lower gross profit.
Previous wording
The following table sets forth certain information regarding net income and the related per share data for the three months ended January 31, 2025 and 2024 (dollars in thousands, except per share data):
Current wording
The following table sets forth certain information regarding net loss and the related per share data for the three months ended July 31, 2025 and 2024 (dollars in thousands, except per share data):
Previous 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.
Current wording
Net loss was $6.8 million, or $0.53 loss per diluted share, for the three months ended July 31, 2025 compared with a net loss of $2.4 million, or $0.23 loss per diluted share, for the comparable quarter last year. The higher net loss was primarily related to lower net sales volume and lower gross profit during the three months ended July 31, 2025 as compared to the three months ended July 31, 2024.
Previous wording
We use GAAP net income as our primary financial measure. We use Adjusted EBITDAS, which is a non-GAAP financial metric, as a supplemental measure of our performance in order to provide investors with an improved understanding of underlying performance trends, and it should be considered in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Adjusted EBITDAS is defined as GAAP net income/(loss) before interest, taxes, depreciation, amortization, and stock compensation expense. Our Adjusted EBITDAS calculation also excludes certain items we consider non-routine. We believe that Adjusted EBITDAS is useful to understanding our operating results and the ongoing performance of our underlying business, as Adjusted EBITDAS provides information on our ability to meet our capital expenditure and working capital requirements, and is also an indicator of profitability. We believe this reporting provides additional transparency and comparability to our operating results. We believe that the presentation of Adjusted EBITDAS is useful to investors because it is frequently used by analysts, investors, and other interested parties to evaluate companies in our industry. We use Adjusted EBITDAS to supplement GAAP measures of performance to evaluate the effectiveness of our business strategies, to make budgeting decisions, and to neutralize our capitalization structure to compare our performance against that of other peer companies using similar measures, especially companies that are private. We also use Adjusted EBITDAS to supplement GAAP measures of performance to evaluate our performance in connection with compensation decisions. We believe it is useful to investors and analysts to evaluate this non-GAAP measure on the same basis as we use to evaluate our operating results.
Current wording
We use GAAP net income as our primary financial measure. We use Adjusted EBITDA, which is a non-GAAP financial metric, as a supplemental measure of our performance in order to provide investors with an improved understanding of underlying performance trends, and it should be considered in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Adjusted EBITDA is defined as GAAP net income/(loss) before interest, taxes, depreciation, amortization, and stock compensation expense. Our Adjusted EBITDA calculation also excludes certain items we consider non-routine. We believe that Adjusted EBITDA is useful to understanding our operating results and the ongoing performance of our underlying business, as Adjusted EBITDA provides information on our ability to meet our capital expenditure and working capital requirements, and is also an indicator of profitability. We believe this reporting provides additional transparency and comparability to our operating results. We believe that the presentation of Adjusted EBITDA is useful to investors because it is frequently used by analysts, investors, and other interested parties to evaluate companies in our industry. We use Adjusted EBITDA to supplement GAAP measures of performance to evaluate the effectiveness of our business strategies, to make budgeting decisions, and to neutralize our capitalization structure to compare our performance against that of other peer companies using similar measures, especially companies that are private. We also use Adjusted EBITDA to supplement GAAP measures of performance to evaluate our performance in connection with compensation decisions. We believe it is useful to investors and analysts to evaluate this non-GAAP measure on the same basis as we use to evaluate our operating results.
Previous wording
Adjusted EBITDAS is a non-GAAP measure and may not be comparable to similar measures reported by other companies. In addition, non-GAAP measures have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP. We address the limitations of non-GAAP measures through the use of various GAAP measures. In the future, we may incur expenses or charges such as those added back to calculate Adjusted EBITDAS. Our presentation of Adjusted EBITDAS should not be construed as an inference that our future results will be unaffected by these items.
Current wording
Adjusted EBITDA is a non-GAAP measure and may not be comparable to similar measures reported by other companies. In addition, non-GAAP measures have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP. We address the limitations of non-GAAP measures through the use of various GAAP measures. In the future, we may incur expenses or charges such as those added back to calculate Adjusted EBITDA. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by these items.
Previous 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):
Current wording
The following table sets forth our calculation of non-GAAP Adjusted EBITDA for the three months ended July 31, 2025 and 2024, respectively (dollars in thousands):
Previous wording
The following table sets forth certain cash flow information for the nine months ended January 31, 2025 and 2024 (dollars in thousands):
Current wording
The following table sets forth certain cash flow information for the three months ended July 31, 2025 and 2024 (dollars in thousands):
Previous 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.
Current wording
Cash used in operating activities was $1.7 million for the three months ended July 31, 2025 compared with cash used in operating activities of $4.4 million for the three months ended July 31, 2024. Cash used by operating activities for the three months ended July 31, 2025 was primarily impacted by $5.0 million of lower accrued payroll and incentives because of timing of payroll accruals and the annual payment of management incentives and $21.1 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 as well as new product launches later in the fiscal year. In addition, we capitalized higher tariff costs into inventory for tariffs imposed on inventory purchases for product manufactured in China. The cash usage for the three months ended July 31, 2025 was partially offset by a $17.6 million increase in accounts receivable because of the timing of customer shipments, $7.2 million increase in accounts payable due to the timing of inventory purchases as we built our inventory balances higher during our first fiscal quarter, and $3.0 million of increase accrued expenses primarily related to the timing of outbound freight accruals and higher tariff expense imposed on inventory purchases for product manufactured in China.
Previous 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.
Current wording
Cash used in investing activities was $370,000 during the three months ended July 31, 2025, a decrease of $735,000 as compared to the prior year comparable period. We expect to spend approximately $4.0 million to $4.5 million of capital expenditures in fiscal 2026, an increase of $100,000 to $600,000 from the $3.9 million we spent in fiscal 2025.
Previous 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.
Current wording
Cash used in financing activities was $3.6 million for the three months ended July 31, 2025, primarily from $2.5 million used to repurchase 240,437 shares of our common stock.
Previous 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.
Current wording
We had $17.8 million of cash equivalents on hand as of July 31, 2025 and had $23.4 million in cash and cash equivalents on hand as of April 30, 2024.
Previous wording
The preparation of our condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting periods. Significant accounting policies are summarized in Note 2 of the Notes to the consolidated and combined financial statements in our Annual Report on Form 10-K for the fiscal year ended April 30, 2024. Our critical accounting policies are described in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended April 30, 2024, to which there have been no material changes. Actual results could differ from our estimates.
Current wording
The preparation of our condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting periods. Significant accounting policies are summarized in Note 2 of the Notes to the consolidated and combined financial statements in our Annual Report on Form 10-K for the fiscal year ended April 30, 2025. Our critical accounting policies are described in Management’s
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Current report — wording carried from elsewhere
Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended April 30, 2025, to which there have been no material changes. Actual results could differ from our estimates.
Rearranged previous paragraphs (11)
Previous report — wording carried elsewhere
Our operating results for the nine months ended January 31, 2025 included the following:
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
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 report — wording carried elsewhere
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 report — wording carried elsewhere
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 report — wording carried elsewhere
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 report — wording carried elsewhere
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 report — wording carried elsewhere
The following table sets forth certain information regarding operating expenses for the nine months ended January 31, 2025 and 2024 (dollars in thousands):
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
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 report — wording carried elsewhere
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):