American Outdoor Brands, Inc. Q1 FY2026 earnings call

Key Points

• Navigated evolving tariff landscape and supply chain agility.
• Consumer pull-through and brand momentum: Brands resonated with consumers, with new products making up nearly 29% of net sales. Retailers had varying ordering patterns due to tariff impacts and optimizing pricing/mix.
• Supply chain management: Proactively managed supply chain, shifting production for some products, preserving margins, and maintaining supply continuity.
• Partnerships: Expanded partnership between Bubba and Major League Fishing, introducing ScoreTracker Live.
• Preparation: Preparing for fall season and SHOT Show, focusing on innovation and retail partnerships.

Net sales in Q1 were $29.7 million, down 28.7% from $41.6 million in Q1 last year. Traditional channel net sales decreased 24.4%, while e-commerce net sales declined 35.2%. Shooting sports net sales fell 25.1% and outdoor lifestyle net sales dropped 31.6% year-over-year. Domestic net sales decreased by roughly 25% and international net sales decreased 58.2% ($2.6 million). New products represented nearly 29% of net sales during the first quarter.

Near Term

• Expect a year-over-year decline in net sales for Q2 of approximately 15% due to measured ordering cadence by retailers balancing inventories and tariffs.

Longer Term

• Remain optimistic but no full-year guidance provided yet. Focused on POS performance, new products (like ScoreTracker Live), maintaining gross margins, mitigating tariff impacts, and controlling costs while driving long-term growth.

Risks

• Evolving tariff impacts that continue to shape the business environment.
• Shifting retailer order patterns as they optimize pricing, product mix, and cash flows.
• Broader macroeconomic uncertainty affecting consumer demand and retailer strategies.
• Canada-US trade relations impact on international sales, though it's a small portion of the business currently.

Q: Any excess retailer inventory and how much pricing has been taken so far?

A: Andy Fulmer said they wouldn't call it excess; retailers accelerated orders ahead of price adjustments. Brian Murphy elaborated on pricing being part of offsetting higher costs via supplier concessions, product redesigns, and maintaining new product velocity, with pricing calibrated based on other levers.

Q: When will order choppiness settle?

A: Brian Murphy stated retailers are ordering cautiously due to working capital and tariff uncertainty, but POS is a true indicator of consumer demand; as inventory normalizes and tariff uncertainty lessens, order flow should normalize, supporting improved visibility.

Q: Strongest POS brands and M&A funnel status?

A: Strong POS brands include Caldwell, Bubba, Bog, Gorilla, and Meet Your Maker. Brian Murphy mentioned they're being patient with M&A, seeing fewer great targets, and considering launching new brands in certain categories instead of M&A due to current market conditions.

Q: Signs of buyers trading down or shifting to value-oriented products?

A: Brian Murphy noted consumer shifts among retailers, with some trading down, but their POS remains strong, indicating their premium innovation products are still appealing to enthusiasts despite macro pressures.

Q: Gross margin factors and production shifts?

A: Brian Murphy discussed monitoring tariff landscape, using levers like supplier concessions, pricing adjustments, and new product velocity to manage gross margins. Production shifts depend on tariff stability, supplier readiness, and maintaining product quality, with China still competitive for certain specialized products.

Q: Strategies to broaden e-commerce mix?

A: Brian Murphy noted traditional retailers are increasing their e-commerce sales, and their goal is to be where consumers expect to find them, with traditional retailers taking a larger share of e-commerce sales as consumers shift purchasing online.