American Outdoor Brands delivered third-quarter results that were well received by the market, driven by strong execution in its core brand portfolio and a dynamic channel mix. Management highlighted robust sell-through at key retail partners and a notable 4% year-over-year increase in point-of-sale activity, despite broader industry foot traffic declines. CEO Brian Murphy credited “efficiently managing tariffs, customer ordering dynamics, and cost reduction opportunities” as factors that helped offset a challenging retail environment. Expansion into new retail placements, particularly for the Caldwell and BOG brands, further supported channel momentum.
Is now the time to buy AOUT? Find out in our full research report (it’s free for active Edge members).
American Outdoor Brands (AOUT) Q3 CY2025 Highlights:
- Revenue: $57.2 million vs analyst estimates of $50.92 million (5% year-on-year decline, 12.3% beat)
- Adjusted EPS: $0.29 vs analyst estimates of $0.20 (48.7% beat)
- Adjusted EBITDA: $6.48 million vs analyst estimates of $4.01 million (11.3% margin, 61.5% beat)
- Operating Margin: 3.7%, down from 5.1% in the same quarter last year
- Market Capitalization: $96.92 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From American Outdoor Brands’s Q3 Earnings Call
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Matthew Koranda (ROTH Capital): Asked about the visibility into point-of-sale (POS) data and which brands outperformed. CEO Brian Murphy explained that about 60% of revenue is tracked via POS systems, with outdoor lifestyle brands, particularly Caldwell, outperforming shooting sports.
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Matthew Koranda (ROTH Capital): Inquired about the disconnect between strong POS results and the forecasted sales decline, questioning if inventory overhang or retailer order timing played a role. Murphy noted retailers are managing lower inventory levels and varying their order timing based on seasonality and available capital.
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Matthew Koranda (ROTH Capital): Asked how the company plans to address softness from a large e-commerce customer. Murphy stated that as traditional retailers grow their online channels, volatility from pure e-commerce partners should diminish over time.
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Doug Lane (Water Tower Research): Questioned the timing of tariff mitigation benefits and whether implementation is complete. CFO Andy Fulmer confirmed mitigation actions are in place, but benefits will be realized gradually as inventory turns and cost concessions take effect.
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Mark Smith (Lake Street Capital): Sought details on new product development and expansion into new segments. Murphy highlighted continued investment in innovation and upcoming SHOT Show launches, focusing on ecosystem expansion and gamification within core brands.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will watch (1) the pace and market reception of new product introductions, especially at SHOT Show, (2) evidence that tariff mitigation actions are translating into improved margins as inventory cycles progress, and (3) stabilization in retailer order patterns and inventory management strategies. The effectiveness of cost controls and the company’s ability to maintain consumer engagement across channels will also be key indicators.
American Outdoor Brands currently trades at $7.71, in line with $7.72 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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