American Outdoor (AOUT) Q4 Earnings Lag Estimates, Net Sales Top

Core Insights - American Outdoor Brands, Inc. (AOUT) reported mixed results for Q4 fiscal 2024, with break-even earnings missing estimates, while net sales exceeded expectations [1][3] - The company experienced year-over-year growth in net sales, driven by outdoor lifestyle and shooting sports categories, but the bottom line declined due to increased costs [1][5] Q4 Earnings & Net Sales - Adjusted EPS was break-even, missing the Zacks Consensus Estimate by 100%, compared to an adjusted EPS of 6 cents in the prior year [3] - Quarterly net sales reached $46.3 million, exceeding the consensus estimate of $43 million by 7.2%, and rose 9.7% year over year from $42.2 million [3] Operating Highlights - Total operating expenses increased to $24.9 million, up 7.8% year over year, with a gross margin of 41.9%, down 330 basis points [4] - Adjusted EBITDAS was $1 million, down from $1.8 million in the previous year, with an adjusted EBITDAS margin contracting to 2.2% [4] Fiscal 2024 Highlights - For fiscal 2024, net sales increased by 5.2% year over year to $201.1 million, with traditional channel net sales growing by 12.3% [5] - Adjusted EPS for the year was 32 cents, down from 48 cents in fiscal 2023, while total operating expenses were $100.9 million, slightly up from $100.8 million [5] Balance Sheet - As of April 30, cash and cash equivalents stood at $29.7 million, an increase from $22 million at the end of fiscal 2023 [6] - Total current liabilities were $29.4 million, up from $23 million reported at the end of April 30, 2023 [6] Fiscal 2025 Outlook - The company anticipates consolidated net sales to increase by more than 2.5% year over year [7] - Adjusted EBITDAS margin is expected to be between 5.5% and 6%, compared to 4.9% reported in fiscal 2024 [8]