Financial Data and Key Metrics Changes - Net sales for Q1 were 41.6million,adecreaseof4.143.4 million in Q1 last year [15][19] - Adjusted EBITDAs increased by more than 76%, reaching approximately 2millionforthequarter[9][15]−GAAPgrossmarginforQ1was45.40.18, an improvement from a loss of 0.31lastyear,whilenon−GAAPEPSwas0.06 compared to 0.01inQ1lastyear[17]BusinessLineDataandKeyMetricsChanges−Intheshootingsportscategory,netsalesdeclinedbyabout74.4 million, representing over 10% of total net sales and a growth of over 21% [12] - POS sales in the outdoor lifestyle category were positive, while POS sales in shooting sports were weaker year-over-year [13] Company Strategy and Development Direction - The company focuses on innovation as a core strategy, aiming to gain market share, enter new product categories, and expand distribution [8][9] - The company has generated over 60millioninincrementalorganicrevenuefromnewproductssinceitsspinoffin2020,reflectingstronginnovationvitality[9]−Thecompanyexpectstodelivergrowthforfiscal2025despitepotentialquarterlyfluctuations[6][23]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementanticipatesheadwindsintheshootingsportscategorybutremainsoptimisticaboutgrowthintheoutdoorlifestylecategoryduetonewproductlaunchesanddistributionopportunities[22][23]−Thecompanyexpectsfiscal2025netsalestogrowbyasmuchas2.523.5 million and no debt, allowing for flexibility in capital allocation [19][21] - The company repurchased approximately 42,000 shares at an average price of $9.06 per share during the quarter [22] Q&A Session Summary Question: Performance of new products and future outlook - Management noted that new products generated a significant share of revenue and saw growth in international markets, particularly in Canada [28][29] Question: Current M&A market opportunities - Management indicated that more opportunities are emerging in the outdoor lifestyle segment, with higher quality acquisition targets becoming available [30][33] Question: Update on Grilla rollout and retail shelf spacing - Management confirmed that Grilla products are performing well on Amazon and emphasized the importance of strategic partnerships for retail launches [34][38] Question: Retail partner behavior as hunting season approaches - Management observed a mix of cautious optimism among retailers, with some managing inventories well and others still destocking [42][44] Question: Growth in international markets and distribution facilities - Management expressed optimism about the Canadian market and noted improvements in efficiency from the expanded distribution facility [46][50] Question: Consumer behavior and pricing decisions in shooting sports - Management highlighted the uncertainty in the shooting sports market due to the influx of new firearm owners and the upcoming election [54] Question: Clarification on gross margin expectations - Management clarified that the expected gross margin of 45% for the year is based on better freight rates and a normal promotional environment [58] Question: Impact of election cycle on shooting sports - Management stated that the forecast does not account for any potential bump from the election, focusing instead on current market dynamics [60]
