American Outdoor Brands, Inc.

Fiscal 26 net sales were $190.5 million, down 14.3% versus fiscal 25; excluding about $10 million of retailer acceleration into fiscal 25, net sales declined 5.4%. Q4 net sales fell 24% year over year, or $4.8 million / 9.2% on an adjusted basis. Gross margin was 44.7%, up 10 basis points, and non-GAAP EPS was $0.28 versus $0.76 in fiscal 25; GAAP EPS was a loss of $0.73 versus a loss of $0.01. Full-year adjusted EBITDA was $10.2 million versus $17.7 million last year. For fiscal 27, management expects net sales of $200 million-$210 million, gross margin in the mid-40s, and adjusted EBITDA of 6.5%-7.5% of net sales; Q1 adjusted EBITDA is expected to be slightly negative.

Brian Daniel Murphy emphasized that reported sales were distorted by last year’s retailer acceleration and said underlying demand remained healthier than the top line suggests. He pointed to POS growth, expanding distribution, and innovation-led products and ecosystems as the core of the company’s strategy, citing brands like Caldwell, Bubba, and BOG as examples. His tone was confident and forward-looking, with repeated emphasis on the company’s patent moat, disciplined execution, and ability to return to growth in fiscal 27.

Andy Fulmer focused on disciplined cost control, tariff management, and a strong balance sheet. He cited fiscal 26 gross margin of 44.7%, operating expenses of $94.2 million GAAP and $80.3 million non-GAAP, cash of $21.4 million, no debt, and inventory of $91.9 million, plus $21.3 million of operating cash flow in the second half. He also noted the $15.2 million IEPA tariff refund claim, the $3.5 million-$4 million CapEx plan for fiscal 27, and the expectation for minimal GAAP income tax due to about $21 million of NOL carryforwards.

Analysts focused on whether fiscal 27 margin guidance included tariff rebate benefits, and management said the outlook does not assume future contra-COGS items from additional rebates; all tariffs currently effective are baked into guidance. Questions also probed the gap between positive POS and the company’s sales outlook, and management said the bridge was mainly due to the prior-year acceleration, ongoing softness in aiming solutions, and the e-commerce inventory reset, while noting those trends were improving. On capital allocation, management said tariff refunds are viewed as offsetting other tariff costs rather than a windfall, and Brian Murphy said the company remains willing to pursue M&A, with Kyle Carter’s arrival adding pipeline and acquisition capability.