American Outdoor Brands boosted by rise in personal protection, outdoor lifestyle activities

Outdoor sports and recreation retailer American Outdoor Brands saw net sales across its portfolio grow 91% in the company’s third quarter.

“Growth occurred in nearly all of our 20 brands,” President and CEO Brian Murphy said in the company’s earnings release Wednesday. “Our top selling products in the quarter came from each of our four brand lanes – the Marksman, Defender, Harvester, and Adventurer – reflecting the alignment of our brands with strong consumer participation trends in personal protection and the outdoor lifestyle activities.”

Net sales for the third quarter were $82.6 million, an increase of $39.3 million, or 90.7%, compared to net sales of $43.3 million for the comparable quarter last year. Net sales for e-commerce increased 129%. Sales jumped 68.5% via “traditional channels” such as retail sporting goods outlets.

“This result demonstrated our highly leverageable platform, which is made possible by our earlier investments in our e-commerce and logistics capabilities,” Chief Financial Officer Andrew Fulmer added.

The company reported a profit of $8 million, or $0.56 per diluted share, compared with a net loss of $147,000, or $0.01 per diluted share, for the comparable quarter last year.

For the period ending Jan. 31, the outdoor-accessories company said earnings per share were 56 cents, compared with a loss of 1 cent in the comparable quarter a year ago. Adjusted earnings were 82 cents per share.

Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was $15.8 million, or 19.1% of net sales, compared with $3.4 million, or 7.9% of net sales, for the comparable quarter last year, representing growth of 360% compared to the same quarter a year ago.

The company ended the quarter with $45.5 million in cash and no borrowing on its $50 million senior secured credit facility, which is expandable by an additional $15 million under certain conditions. The $110 million in available capital will be used to support the company’s organic growth as well as any potential future acquisitions.

Looking ahead to the full fiscal year ending April 30, American Outdoor Brands expects earnings per share to be between $1.07 and $1.14 on net sales in the range of $268 million and $272 million. On an adjusted basis, earnings per share is expected to be between $2.08 and $2.15.

American Outdoor Brands, formerly known as Smith & Wesson, changed its name in 2016 as part of a diversification push that generated mixed reviews and mixed stock performance. In 2019, Smith & Wesson was spun off and the firearm business went back to the public markets under its famous name.

Shares of American Outdoor Brands surged more than 11% in after-hours trading on the earnings announcement Wednesday.