American Outdoor 2026 Q1 Earnings Sharp Earnings Decline Amid Revenue Drop

American Outdoor (AOUT) reported its fiscal 2026 Q1 earnings on September 4, 2025. The results revealed a sharp decline in both revenue and profitability. The company’s guidance for the upcoming quarter remained cautious, reflecting ongoing challenges in the retail environment and supply chain pressures.

Revenue
The company's total revenue declined by 28.7% year-over-year to $29.70 million in Q1 2026, compared to $41.64 million in the same period in 2025.

Earnings/Net Income
American Outdoor posted a significant widening of its net loss, with earnings per share falling to -$0.54 from -$0.18 in the prior year. The net loss for the quarter rose to -$6.83 million, a 188.8% increase from -$2.37 million in 2025 Q1, marking a record low.

Price Action
The stock saw mixed performance in the short term, with a 1.66% rise during the latest trading day. However, over the past week, it dipped by 1.84%. The stock has rebounded significantly in the month-to-date period, climbing 12.55%.

Post-Earnings Price Action Review
American Outdoor’s leadership emphasized the company’s ability to adapt to external headwinds. CEO Brian Murphy noted strong consumer demand for new product innovations, which accounted for nearly 29% of Q1 net sales. Despite the revenue decline, Murphy expressed confidence in the company’s long-term strategic direction, highlighting supply chain agility and innovation as key strengths. The CFO outlined cautious guidance for Q2, anticipating a roughly 15% year-over-year revenue drop due to ongoing retailer inventory caution and tariff-related disruptions.

CEO Commentary
Brian Murphy, CEO & Director, underscored the company's resilience amid a volatile market environment. He highlighted strong point-of-sale performance driven by consumer pull-through and new product innovation. Murphy noted the company's ability to adapt and gain market share during challenging periods. He emphasized supply chain agility, margin discipline, and strategic partnerships, such as the expanded collaboration with Major League Fishing, as key drivers for recurring revenue and brand growth.

Guidance
For Q2 2026, the company expects a year-over-year net sales decline of approximately 15%, driven by continued retailer caution in inventory management and tariff-related order fluctuations. For the full fiscal year, while full guidance was not provided, the company anticipates maintaining gross margins and controlling costs while advancing innovation initiatives. Capital expenditures are projected to remain between $4 million and $4.5 million for the year, consistent with the company’s asset-light model. The company expects to continue repurchasing shares under its remaining $10 million buyback program and maintain a strong, debt-free balance sheet.

Additional News
On September 3, 2025, the Punch newspaper reported on various Nigerian news developments. Key highlights included a surge in new political parties seeking INEC registration and efforts by Lagos and Ogun state leaders to improve infrastructure and public services. Notable initiatives included scholarships and palliatives provided by Lagos deputy speaker to constituents and calls for improved healthcare and road infrastructure in Ogun communities. In the business sector, Nigeria and China deepened cooperation in the marine sector, while UK executives explored fintech deals with Nigerian firm Interswitch.