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Outdoor sports and leisure retailer American Outdoor Brands posted sales growth of 91% across its portfolio in the third quarter.
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“Almost all of our 20 brands are growing,” said President and CEO Brian Murphy in the company’s earnings release on Wednesday. “Our best-selling products for the quarter were from each of our four brand lanes – Marksman, Defender, Harvester and Adventurer – and reflect our brands’ alignment with the strong consumer participation trends in personal protection and outdoor lifestyle activities.”
Net sales for the third quarter were $ 82.6 million, an increase of $ 39.3 million, or 90.7%, from net sales of $ 43.3 million for the same quarter last year. Net sales in e-commerce increased 129%. Sales through “traditional channels” such as sporting goods stores increased by 68.5%.
“This result demonstrates our highly usable platform made possible by our previous investments in our e-commerce and logistics capabilities,” added CFO Andrew Fulmer.
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The company reported earnings of $ 8 million, or $ 0.56 per diluted share, compared to a net loss of $ 147,000, or $ 0.01 per diluted share, for the same quarter last year.
For the period ended Jan. 31, the outdoor accessories company reported earnings per share of 56 cents, compared to a loss of 1 cents for the same 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 to $ 3.4 million, or 7.9% of net sales, for the same quarter last year, a growth of 360 % year on year corresponds to the same quarter a year ago.
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The company ended the quarter with $ 45.5 million in cash and no borrowing on its $ 50 million senior secured credit facility, which can be increased by an additional $ 15 million under certain conditions. The available capital of $ 110 million will be used to support the company’s organic growth and potential future acquisitions.
For the fiscal year ended April 30, American Outdoor Brands expects earnings per share of between $ 1.07 and $ 1.14 with net sales of between $ 268 and 272 million. Adjusted, earnings per share are expected to be between $ 2.08 and $ 2.15.
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| AUOT | n / A | n / A | n / A | n / A |
American Outdoor Brands, formerly known as Smith & Wesson, changed its name in 2016 as part of a diversification push that resulted in mixed valuations and mixed stock performance. In 2019, Smith & Wesson was spun off and the gun business returned to the public markets under its famous name.
American Outdoor Brands shares rose more than 11% in after-hours trading on Wednesday after earnings announcement.
Fox Business’s Stephanie Pagones contributed to this report
