American Outdoor Brands misses revenue expectations, down 28.6% YoY.

American Outdoor Brands reported Q1 revenue of $29.7 million, down 28.6% YoY, and missed the consensus estimate by $6.1 million. The company's stock slumped in early trading on Friday. Tariffs disrupted the replenishment cycle of its customers, affecting sales. The retailer fell short of consensus estimates with its fiscal first quarter earnings report.

American Outdoor Brands Inc. (AOUT) reported its first-quarter (Q1) 2026 earnings on Friday, revealing a significant drop in revenue and a miss on consensus estimates. The company's stock slumped in early trading following the announcement.

Revenue for Q1 2026 decreased by 28.7% year-over-year (YoY) to $29.7 million, falling short of the consensus estimate by $6.1 million [1]. The company attributed the decline to disruptions in the replenishment cycle of its customers due to tariffs, as well as a challenging retail environment and consumer spending pressures.

Non-GAAP earnings per share (EPS) for the quarter were -$0.26, missing the forecasted -$0.25 by 4% [1]. Gross margin improved by 130 basis points to 46.7%, but this was not enough to offset the revenue decline. E-commerce sales experienced a significant decline of 35.2%, further contributing to the overall revenue shortfall [1].

Despite the earnings miss, the company's stock rose by 9.38% in aftermarket trading, reaching $11.20 [1]. This increase may reflect investor optimism about the company's strategic initiatives and gross margin improvements. The stock remains off its 52-week high of $17.91 but has shown resilience compared to broader market trends.

Looking ahead, American Outdoor Brands anticipates a 15% decline in net sales for the second quarter. The company remains optimistic about its full-year performance, driven by continued investment in its product pipeline and efforts to maintain gross margins. The company is also working on shifting production outside China to mitigate tariff impacts [1].

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-american-outdoor-brands-q1-2025-sees-revenue-drop-stock-up-93CH-4225753