American Outdoor Brands Expect Net Sales In Q3 To Decline About 8% YoY, Reflecting Current Retailer Dynamics

Third Quarter and Fiscal 2026 Outlook

Fulmer continued, "You'll recall that in our prior fiscal year, which ended April 30, 2025, we reported that retailers had accelerated approximately $10 million dollars in orders originally slated for our current fiscal year, as they sought to get ahead of impending tariffs.  That action allowed us to deliver full fiscal 2025 net sales of $222 million – a favorable result, but one that created a challenging comparison for fiscal 2026.  We are now seven months into fiscal 2026, and we are pleased with our performance – especially given the macro challenges that have characterized the year: tariffs, cautious retailer buying, and an uncertain consumer environment.   

"Based on what we know today, we believe the full fiscal year could deliver net sales down 13% to 14% from last year's $222 million dollars.  That percentage would include the $10 million of orders that were accelerated into our prior year.  Adjusting for those orders, the underlying net sales decline would be approximately 5% – performance we would view as extremely positive given the current environment.  We expect net sales in the third quarter to decline approximately 8% year over year, reflecting current retailer dynamics.  Lastly, we expect gross margin for both the full year and the third quarter to be in the range of 42% to 43%, and we expect Adjusted EBITDA for the full year to be in the range of 4.0% to 4.5% of net sales."