American Outdoor Brands (NASDAQ:AOUT) reported a strong start to fiscal 2027, with first-quarter net sales rising 25.4% year over year to $37.3 million and adjusted EBITDA improving to $4.3 million from a $3.1 million loss a year earlier. The company maintained its full-year sales outlook while raising its adjusted EBITDA guidance, citing higher-margin product and channel mix, new-product demand and operating discipline.
President and CEO Brian Murphy said the quarter reflected healthy retailer and consumer demand, growth across both the outdoor lifestyle and shooting sports categories, and continued benefits from the company’s innovation strategy.
Sales Growth Broad-Based Across Categories and Channels
First-quarter sales increased from $29.7 million in the prior-year period. Management noted that the prior-year first quarter had been affected by approximately $6 million in retailer orders accelerated into the fourth quarter of fiscal 2025. After accounting for that comparison, American Outdoor Brands said sales increased approximately 4.3% from the prior-year quarter.
- Outdoor lifestyle sales rose 34.4% year over year.
- Shooting sports sales increased 15.3%.
- Traditional-channel sales grew 28.4%.
- E-commerce sales increased 20.1%.
- Domestic sales rose 24.9%, while international sales increased 32.7%, or about $600,000, driven largely by Canada and Europe.
Murphy said results included higher sales with the company’s largest e-commerce retailer and largest mass retailer, as well as increased direct-to-consumer website sales and international demand. He added that American Outdoor Brands recorded its sixth consecutive quarter of year-over-year point-of-sale growth, with POS up 6% in outdoor lifestyle and 3% in shooting sports.
The company’s key growth brands—BOG, BUBBA, Caldwell, Grilla and MEAT! Your Maker—collectively posted year-over-year sales growth. New products represented 36% of first-quarter net sales, exceeding the company’s historical range of 20% to 25%.
Innovation Supports Demand and Margin
Murphy highlighted Caldwell’s Claymore and ClayCopter product platforms as examples of the company’s product-development approach. Caldwell expanded into shotgun shooting with Claymore, designed to address mobility and power limitations associated with traditional clay throwers, and ClayCopter, a portable launcher with biodegradable targets designed to mimic bird flight.
American Outdoor Brands has more than 30 patents or pending patent applications supporting the Claymore and ClayCopter product families, Murphy said. Through the Caldwell Clays mobile app, consumers can connect the launchers and use traditional clays and ClayCopter targets in the same session.
During the question-and-answer session, Murphy said the ClayCopter family was among the top contributors to new-product sales and had generated unusually strong consumer response. While he said the 36% contribution from new products is not expected to be sustainable over the long term, he indicated the company could see above-average new-product sales during the year.
Murphy also pointed to BUBBA’s connected-product strategy. Paid subscriptions associated with BUBBA smart fish scales have reached the six-figure dollar range on a trailing-12-month basis and accelerated during the first quarter, according to the company. The subscriptions began converting from complimentary two-year offers included with the initial smart scale launch. American Outdoor Brands also launched SCORETRACKER LIVE for consumers at the ICAST trade show in July.
Profitability Improves, Though Tariff Effects Are Expected Later
First-quarter gross margin was 53%, up 630 basis points from the prior-year quarter. CFO Andy Fulmer attributed the expansion to higher margins from new products, channel mix, the timing of tariff capitalization and amortization, and pricing actions implemented in fiscal 2026.
In response to an analyst question, Fulmer said roughly 200 basis points of the gross-margin improvement related to tariff timing, while the remaining improvement primarily reflected e-commerce growth, new-product mix and some pricing benefits.
The company said it has capitalized tariffs into inventory since February, delaying recognition of related costs in its income statement. Fulmer said American Outdoor Brands expects tariff effects to begin appearing later in the third quarter, with a full-quarter impact in the fourth quarter.
GAAP operating expenses rose to $21.9 million from $20.7 million, driven by sales-related variable costs and higher fuel costs, partly offset by lower bad-debt expense and intangible amortization. Non-GAAP operating expenses were $19.8 million, compared with $18.2 million a year earlier.
The company reported a GAAP net loss of $0.12 per share, an improvement from a loss of $0.54 per share in the prior-year period. Non-GAAP earnings were $0.03 per share, compared with a non-GAAP loss of $0.26 per share a year earlier.
Balance Sheet and Outlook
American Outdoor Brands ended the quarter with $33.3 million in cash and no debt. Operating cash flow was $13 million, compared with cash usage of $1.7 million in the prior-year quarter, aided by IEEPA refund claims and improved operating performance.
Inventory rose $8.4 million during the quarter to $100.3 million as the company built inventory for hunting and holiday demand. The company had no borrowings under its $75 million credit line and said it had more than $120 million in total available capital.
For fiscal 2027, American Outdoor Brands maintained its sales forecast of $200 million to $210 million. At the midpoint, that would represent 7.5% growth from fiscal 2026 reported sales. The company expects second-quarter sales to increase approximately 3% from the prior-year period and said its typical seasonal pattern should continue, with the second and third quarters generating the highest sales.
Fulmer said the company now expects adjusted EBITDA of $14.5 million to $17.5 million, raising its prior outlook of approximately $13 million to $16 million. The midpoint of the revised range, $16 million, would represent a 57% increase from the prior year, according to the company.
Management said consumer spending remains measured and that tariffs, economic conditions and global developments remain fluid. Murphy said the company intends to remain focused on innovation, retailer relationships and operational flexibility as it progresses through the fiscal year.
About American Outdoor Brands (NASDAQ:AOUT)
American Outdoor Brands, Inc designs, manufactures and distributes a broad range of outdoor sports and recreational products for consumers and commercial end users. Through its Shooting & Accessories and Functional Outdoor Approaches segments, the company offers shooting sports equipment, hunting and fishing accessories, archery gear, tactical and personal defense solutions, outdoor apparel, fitness products and knife and tool categories. Its portfolio encompasses well-known brands such as Wheeler®, Tipton®, Caldwell®, Hogue®, Manticore Arms® and other specialty labels.
Formed as a standalone public company in 2016 following a spin-off from Smith & Wesson, American Outdoor Brands has its headquarters in Columbia, Missouri, with manufacturing, distribution and sales operations across North America.
