Trading On margin

Stock of U.S. outdoor brands slips after fourth quarter results, clocks see sales down about 29%

  • American Outdoor Brands Inc. AUGUST reported fourth quarter sales fell 28.8% year over year to $45.89 million, beating consensus of $45.49 million.
  • The company said that on a two-year basis, net sales grew 6.5%, reflecting traditional channel growth of 18%.
  • Adjusted EPS was $0.14, beating the consensus of $0.10.
  • Gross margin contracted by 60 basis points to 43.8%. The company posted an operating loss of ($76.68) million for the quarter, compared to a profit of $1.25 million a year ago.
  • Adjusted operating income was $1.98 million (-67.9% year-over-year) and margin contracted 525 basis points to 4.3%.
  • Adjusted EBITDAS was $3.23 million (-53.6% year-over-year) and margin decreased 376 basis points to 7%.
  • American Outdoor used cash from operations of ($17.95) million for FY22, compared to cash generated of $33.32 million for FY21.
  • “Our cash balance, combined with our line of credit capacity, provided us with nearly $70 million of available capital at the end of fiscal 2022. We believe our strong financial position allows us to continue to execute our long-term strategic plan, invest in our business and seize the exciting growth opportunities we have identified for fiscal year 2023 and beyond,” commented Andrew Fulmer, Chief Financial Officer.
  • Price Action: AUG shares are trading down 0.53% at $9.37 in Thursday’s aftermarket session.