American Outdoor Brands, Inc. reported a decline in financial performance for the third quarter and nine months ended January 31, 2026, as detailed in its latest 10-Q filing. The company recorded net sales of $56.6 million for the quarter, a decrease of 3.3% from $58.5 million in the same period last year. For the nine-month period, net sales totaled $143.5 million, down 10.5% from $160.4 million. The gross profit margin also fell, with gross profit at $23.2 million for the quarter, representing a 41.0% margin, down from 44.7% a year earlier. The company reported a net loss of $4.1 million, or $(0.32) per diluted share, compared to a net income of $169,000, or $0.01 per diluted share, in the prior year quarter.
The decline in revenue was attributed to lower sales in the shooting sports category, which saw a 15% drop, while the outdoor lifestyle category experienced a 5.4% increase. The company noted that new products introduced in the last 24 months accounted for 26.6% of net sales in the latest quarter. The decrease in sales was partially offset by pricing actions taken to mitigate the impact of tariffs imposed by the U.S. Administration. The company also recorded a $3.4 million non-cash impairment charge related to the write-down of assets held for sale, which contributed to the operating loss of $3.9 million for the quarter.
In terms of operational metrics, American Outdoor Brands reported a decrease in cash and cash equivalents, which fell to $10.4 million as of January 31, 2026, down from $23.4 million at the end of the previous fiscal year. The company’s inventory increased to $110.2 million, reflecting higher tariff costs and planned purchases for new product launches. The total employee headcount remained stable, with no significant changes reported in staffing levels.
Looking ahead, American Outdoor Brands expressed intentions to continue investing in product development and growth strategies, including potential acquisitions. The company plans to utilize cash flows to support these initiatives while managing its existing debt obligations. The outlook remains cautious, with the company acknowledging the potential impact of ongoing tariff-related costs and market conditions on future performance. The management emphasized the importance of maintaining liquidity to navigate these challenges and capitalize on business opportunities as they arise.
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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