American Outdoor Brands, Inc. reported a significant decline in financial performance for the first quarter of fiscal 2026, ending July 31, 2025. The company recorded net sales of $29.7 million, a decrease of 28.7% from $41.6 million in the same period last year. The gross profit also fell to $13.9 million, down 26.8% from $18.9 million, resulting in a gross margin of 46.7%, which is an increase of 130 basis points compared to the previous year. The net loss for the quarter was $6.8 million, or $(0.54) per diluted share, compared to a net loss of $2.4 million, or $(0.18) per diluted share, in the prior year.
The decline in sales was attributed to several factors, including an acceleration of orders from traditional channel customers into the previous quarter, likely in anticipation of increased costs due to tariffs. E-commerce sales decreased by 35.2%, primarily due to lower sales to a major online retailer, while traditional channel sales fell by 24.4%. The company noted that new products, defined as any SKU introduced in the last two fiscal years, accounted for 28.8% of total net sales during the quarter.
Operationally, American Outdoor Brands saw an increase in research and development expenses, which rose by 16.8% to $2.0 million, while selling, marketing, and distribution expenses decreased by 7.6% to $10.5 million. Total operating expenses were $20.7 million, down 3.8% from the previous year. The operating loss for the quarter was $6.8 million, a significant increase from the $2.4 million loss reported in the same quarter last year.
Looking ahead, the company plans to continue investing in its business, including research and development for new product initiatives and potential acquisitions. As of July 31, 2025, American Outdoor Brands had $17.8 million in cash and cash equivalents, down from $23.4 million at the end of the previous fiscal year. The company expects to utilize its cash flows to support growth strategies and manage its capital requirements, although it acknowledges that future financing may not be available on favorable terms.
About American Outdoor Brands, Inc.
American Outdoor Brands, Inc. designs, sources, and sells outdoor lifestyle products and shooting sports accessories across four consumer verticals: Adventurer, Harvester, Marksman, and Defender. Its portfolio includes hunting, fishing, meat processing, outdoor cooking, camping, shooting, and personal security products marketed under 20 brands. The company serves outdoor enthusiasts through e-commerce and traditional retail channels, leveraging innovation, brand-focused marketing, and an asset-light model to deliver high-quality, differentiated products.
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