American Outdoor Brands Plunges 18.46% on Revenue Drop

On September 5, 2025, American Outdoor Brands experienced a significant drop of 18.46% in pre-market trading, reflecting a challenging period for the company.

American Outdoor Brands reported a 28.7% decline in revenue for the first quarter of 2026, with net sales falling to $29.7 million. This drop was largely attributed to retailers accelerating approximately $10 million of orders into the fourth quarter of 2025 to avoid tariff-related price increases. Adjusting for this shift, the revenue decline would have been only 4.7%. Despite the challenging results, the company's gross margin improved to 46.7% from 45.4% year-over-year, and new products accounted for 29% of net sales.

The company's financial health remains robust with $17.8 million in cash and no debt. However, the net loss for the quarter widened to $6.8 million, or $0.54 per share, compared to a loss of $2.4 million, or $0.18 per share, in the previous year. Management expects market conditions to remain volatile and has emphasized adaptability and innovation as key strategies moving forward.