American Outdoor Brands Reports 25.4% Revenue Growth in Q1 Fiscal 2027

American Outdoor Brands, Inc. reported a significant increase in financial performance for the first quarter of fiscal 2027, ending July 31, 2026. The company achieved net sales of $37.3 million, a 25.4% increase from $29.7 million in the same period last year. Gross profit also rose to $19.7 million, reflecting a gross margin of 53.0%, up from 46.7% in the prior year. The net loss for the quarter was $1.5 million, or $(0.12) per diluted share, a notable improvement compared to a net loss of $6.8 million, or $(0.54) per diluted share, in the previous year.

The increase in revenue was attributed to several factors, including a shift in order timing from traditional customers, which had previously accelerated orders to avoid anticipated tariff costs. This year, the company did not experience a similar shift, allowing for a more stable sales environment. Additionally, pricing actions taken to mitigate tariff impacts, increased sales to major retailers, and a rise in direct-to-consumer sales contributed to the revenue growth. New product introductions accounted for 36.1% of net sales during the quarter, compared to 28.8% in the same period last year.

Operationally, American Outdoor Brands saw improvements in various metrics. The company reported a decrease in operating loss to $2.1 million from $6.8 million, driven by higher sales volume and gross profit. Total operating expenses increased slightly to $21.9 million, primarily due to higher selling, marketing, and distribution costs, which rose by 16.7% to $12.3 million. Research and development expenses decreased by 20.6% to $1.6 million, reflecting lower depreciation costs.

The company also reported a strong cash position, with cash and cash equivalents increasing to $33.3 million as of July 31, 2026, up from $21.4 million at the end of the previous fiscal year. Cash provided by operating activities was $13.0 million, a significant turnaround from cash used in operations of $1.7 million in the prior year. This improvement was largely due to the recovery of IEEPA tariff refunds and better management of working capital.

Looking ahead, American Outdoor Brands plans to continue investing in product development and growth strategies, including potential acquisitions. The company remains cautious about market conditions and the impact of tariffs on its operations. The management expressed confidence in its ability to generate positive cash flow and meet future capital requirements, while also monitoring ongoing tariff developments that could affect its business.