American Outdoor Brands(US:AOUT)2025-12-09 21:15Financial Performance - Net sales for the three months ended October 31, 2025, were $57.2 million, a decrease of $3.0 million or 5.0% compared to the same quarter last year[88] - Gross margin for the same period was 45.6%, down 240 basis points from the prior year[88] - Net income for the three months ended October 31, 2025, was $2.1 million, or $0.16 per diluted share, compared to $3.1 million, or $0.24 per diluted share, in the same quarter last year[88] - For the six months ended October 31, 2025, total net sales were $86.9 million, a decrease of $15.0 million or 14.7% from the prior year[94] - Gross margin for the six months ended October 31, 2025, was 46.0%, a decrease of 100 basis points from the prior year[94] - Operating income for the three months ended October 31, 2025 was $2.1 million, a decrease of $979,000 or 31.9% compared to the same period in 2024[101] - For the six months ended October 31, 2025, the company recorded an operating loss of $4.7 million, a decline of $5.2 million or 1,051.1% from an operating income of $497,000 in the prior year[102] - Net income for the three months ended October 31, 2025 was $2.1 million, down $1.036 million or 33.3% from $3.1 million in the same quarter of 2024[105] - The net loss for the six months ended October 31, 2025 was $4.8 million, a decrease of $5.5 million or 737.3% compared to net income of $746,000 in the prior year[106] Sales Channels - E-commerce channel net sales decreased by $3.9 million, or 15.9%, primarily due to lower sales to the world's largest online retailer[91] - Traditional channel net sales increased by $828,000, or 2.3%, driven by stronger sales in hunting and outdoor cooking products[92] - New products represented 31.4% of net sales for the three months ended October 31, 2025[92] Expenses and Cash Flow - Research and development expenses for the three months ended October 31, 2025, decreased by $644,000, or 34.5%[99] - Total operating expenses for the three months ended October 31, 2025, were $24.0 million, a decrease of $1.8 million or 7.1%[99] - Cash used in operating activities was $15.0 million for the six months ended October 31, 2025, an increase of $2.7 million or 22.1% from $12.3 million in the same period of 2024[112] - Total cash flow for the six months ended October 31, 2025 was $(20.3) million, a decline of $4.8 million or 31.3% compared to $(15.5) million in the prior year[112] Future Outlook - The company expects to spend approximately $4.0 million to $4.5 million on capital expenditures in fiscal 2026, compared to $3.9 million in fiscal 2025[115] - The company plans to utilize cash flows for business investments, including research and development for new product initiatives and potential acquisitions[111] Cash Position - As of October 31, 2025, the company had $3.1 million in cash equivalents on hand[118] Adjusted EBITDA - Adjusted EBITDA for the three months ended October 31, 2025 was $6.5 million, down from $7.5 million in the same period of 2024[110]