American Outdoor Brands (AOUT) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 net sales reached $201.1 million, up 5.2% year-over-year, led by Outdoor Lifestyle growth, strong international sales, and new product launches.

• Outdoor Lifestyle category led growth, now 54% of sales, with a 6.9% increase over FY23; shooting sports grew 3.2%.

• Ended the year debt-free with $29.7 million in cash after repurchasing $6.0 million of common stock.

• Gross margin declined to 44.0%, down from 46.1% last year, mainly due to higher tariffs, freight, and promotions.

• Infrastructure investments completed, including HQ expansion and ERP system, positioning for scalable growth.

Financial highlights

• FY24 net sales: $201.1 million, up 5.2% from FY23 and 20.1% above pre-pandemic 2020.

• Gross margin: 44.0% GAAP, 44.5% non-GAAP, down from 46.1% and 46.2% respectively.

• Adjusted EBITDAS: $9.8 million (4.9% margin), down from $12.8 million (6.7%) in FY23.

• FY24 GAAP net loss: $12.2 million; non-GAAP net income: $4.3 million.

• Ended year with $29.7 million in cash, no debt, and $120 million in available capital.

Outlook and guidance

• Fiscal 2025 net sales expected to grow up to 2.5% organically, with a target of $206 million.

• Adjusted EBITDAS margin projected at 5.5%-6.0%, or $11.3M-$12.3M.

• Gross margin projected to improve to about 45% in fiscal 2025, with Q1 lower at ~43% and improvement starting in Q2.

• Long-term goal to reach $400 million in net sales within 4-5 years, with EBITDAS margins in mid-to-high teens.

• Inventory expected to follow seasonal patterns, ending fiscal 2025 just below $100 million.