American Outdoor Brands, Inc. (AOUT) Q2 2026 Earnings Call Transcript
Net Sales $57.2 million, a decrease of 5% year-over-year. The decline was attributed to lower sales in both the Outdoor Lifestyle and Shooting Sports categories, driven by decreases in meat processing equipment and gun cleaning/personal protection products, partially offset by increases in BOG, Grilla, and Caldwell brands.
Outdoor Lifestyle Category Net Sales $34.6 million, down 5% year-over-year. The decrease was mainly driven by a decline in meat processing equipment sales, partially offset by increases in BOG and Grilla brands.
Shooting Sports Category Net Sales Declined 5.1% year-over-year. The decrease was driven by lower sales in gun cleaning and personal protection products, partially offset by strong sales in the Caldwell brand due to expanded distribution of innovative products like the Caldwell ClayCopter.
Traditional Channel Net Sales Increased by 2.3% year-over-year. This growth was aligned with strong POS results and reflects the performance of brands across the omnichannel landscape.
E-commerce Channel Net Sales Decreased by 15.9% year-over-year. The decline was attributed to lower sales to the largest online-only e-commerce partner, partially offset by digital sales through traditional retailers' online platforms.
Gross Margin 45.6%, compared to 48% in the prior year. The decline was due to actions taken to clear slow-moving inventory. Without this action, gross margin would have been approximately 150 basis points higher.
GAAP Operating Expenses $24 million, compared to $25.8 million in the prior year. The decrease was driven by lower variable costs from the decrease in net sales and lower intangible amortization.
Non-GAAP Operating Expenses $21.3 million, compared to $22.7 million in the prior year. Non-GAAP operating expenses exclude intangible amortization, stock compensation, and certain nonrecurring expenses.
GAAP EPS $0.16, compared to $0.24 in the prior year. The decline reflects lower net sales and profitability.
Non-GAAP EPS $0.29, compared to $0.37 in the prior year. The decline reflects lower net sales and profitability.
Adjusted EBITDA $6.5 million, compared to $7.5 million in the prior year. This represents 11.3% of net sales, down slightly year-over-year.
Inventory Levels $124 million, up $12.4 million year-over-year. The increase was driven entirely by $14 million of incremental tariffs capitalized into inventory, while base inventory declined by $1.6 million.
Cash and Debt $3.1 million in cash and no debt. The company repurchased $662,000 of common stock during the quarter.
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U.S. Considers Easing Gun Regulations, Impacting Major Gun Stocks
- Regulatory Changes Expected: The U.S. government may announce easing of gun regulations at the National Shooting Sports Foundation trade show, likely impacting major gun stocks like Smith & Wesson (SWBI) and Sturm, Ruger (RGR), potentially stimulating sales growth.
- Positive Market Reaction: As trading begins this week, retail sentiment has shifted to bullish for RGR and neutral for AOUT, indicating market optimism regarding potential policy changes and their implications for stock performance.
- Sales Growth Potential: Easing restrictions on private sales and exports is expected to boost firearm sales, likely leading to strong short-term performance for SWBI, RGR, and other related stocks, reflecting market sensitivity to regulatory changes.
- Political Context Impact: The Trump administration's intent to reverse Biden-era gun restrictions highlights the significance of gun policy in U.S. politics, potentially further driving growth in the firearms industry and increasing investor interest.

American Outdoor Brands Launches Caldwell Clays™ App for Wireless Control of 10 Launchers
- Innovative App Features: The Caldwell Clays™ App enables users to wirelessly control up to 10 smart launchers via their smartphones, significantly enhancing user flexibility and enjoyment in target shooting experiences.
- Integration of ClayCopter™ Targets: Users can mix ClayCopter™ biodegradable targets with traditional clays to create unique shooting layouts, catering to diverse shooter preferences and driving demand for innovative target experiences in the market.
- Portable Launcher Advantages: The newly launched Claymore Connect™ weighs only 35 lbs and features a 12-volt lithium battery that can launch over 350 targets on a single charge, greatly enhancing portability and convenience for various shooting scenarios.
- Market Strategy Alignment: This launch reflects Caldwell's strategy to build a comprehensive shotgun shooting system through smart accessories and digital integration, addressing the growing market demand and user expectations for advanced shooting solutions.









