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American Outdoor Brands (S&W, etc) Crushes Year-Over-Year Quarterly Sales

AOUT stock chart from Yahoo Finance

 

American Outdoor Brands Inc. (AOUT), parent company of many brands including Smith & Wesson, Thompson/Center, Crimson Trace, LaserLyte, Caldwell, Frankford Arsenal, Wheeler, Bog, Schrade, and plenty more has had a banner quarter. Compared to the same quarter last year, net sales were up 65.7 percent, from $47.7 million to $79.1 million.

This sales increase, combined with a 6.9-percent profit margin improvement, lead to a net income of $7.3 million, which is certainly an improvement over the $393,000 net loss from the same quarter last year. EBITDA increased by approximately 182 percent.

President and CEO of American Outdoor Brands, Brian Murphy, said, in part:

We believe we’re witnessing a new foundational level of consumer participation in outdoor activities, an interest towards personal protection, and an interest in adjacent home-based hobbies that surround outdoor adventure, creating meaningful, long-term growth potential for our business well beyond 2020.

Not to be Debbie Downer here, but I wouldn’t count on it. 2020 has been an odd year — perhaps you’ve noticed? — and while some industries took it on the chin, others have broken all records.

One common theme among businesses that are killing it this year is outdoor activities. As many entertainment options were shuttered and social distancing became “a thing,” plus the receipt of unexpected cash from the .gov earlier in the year, sales of horse trailers, dirt bikes, hiking gear and attire, camping equipment, fishing gear, truck accessories, golf equipment and tee times, shooting supplies, bicycles, backyard games and cooking accessories, park passes, and just about every other piece of kit or reservation fee related to getting out of one’s home saw record demand.

American Outdoor Brands Inc. serves the outdoor demographic. A demographic that grew and spent money in 2020 like mad.

But is it a new, foundational level of participation? Is demand for these kinds of products and activities going to remain at this level, let alone grow, into the future? Or, as the vaccine rolls out and restaurants, movie theaters, sporting venues, bars, offices, casinos, kids’ play centers, etc. open back up will the lake still be the busiest it has even been with fishermen, will tee times still be booked more solidly than ever before, will people continue buying tents and hiking shoes and reloading equipment and firearms for the first time?

I’d rather not be, but I’m skeptical.

 

comments

  1. avatar NTexas says:

    Shoot on , keep putting holes in them paper targets .

    1. avatar Tazina says:

      I get paid more than $160 to $170 per hour for working online. I heard about this job 3 months ago and after joining this i have earned easily $16k from this without having online working skills.This is what I do…. https://bit.ly/3otFGH3

  2. avatar uncommon_sense says:

    I agree with the author (Jeremy S.) that we should not expect the abnormal trends of 2020 to continue into the foreseeable future. Those trends may continue for a bit into 2021. Anything beyond that depends on geopolitical factors and COVID-19 virus in our nation — both of which are difficult to predict in my opinion.

    1. avatar uncommon_sense says:

      Continuing on my comment above, I personally predict that there is going to be a metric crap-ton of general turmoil in our nation in 2021 due to rapidly deteriorating behavior (of a political nature) in our nation. And that could fuel even greater demand — which is hard to fathom at this point — for self-defense firearms and ammunition.

    2. avatar uncommon_sense says:

      And what will be fueling all of this “turmoil” of which I speak? I see two primary root causes:

      1) Adherents of the Far Left have decided to do whatever they want without any restraints — regardless of constitutions, laws, and general decency.

      2) Adherents of the Far Left sincerely want to exact significant punishment and/or “revenge” on Conservative/Republican supporters.

      It doesn’t take a genius level I.Q. to realize that life in our nation is almost certainly going to get very ugly and that will drive firearm and ammunition sales.

  3. avatar Jeff says:

    “As many entertainment options were shuddered…”

    Shuddered?

    1. avatar Jeremy S. says:

      Is that not what goes on windows? I shudder to think about it. Haha, thanks 🙂

  4. avatar FedUp says:

    Is there a gun manufacturer which didn’t show a massive improvement in 3/4 2020 over 3/4 2019?
    The last half of 2019, it was still a buyer’s market, just not as cheap as 2018.

    1. avatar Ralph says:

      “Is there a gun manufacturer which didn’t show a massive improvement”

      Yeah. Remington.

  5. avatar RGP says:

    American Outdoor Brands… cute and highly misleading name. Some of us have been boycotting China as much as possible, and a lot of those brands are MADE IN CHINA.

  6. avatar The truth says:

    Get rid of that Hillary hole and I would help participant in their growth.

  7. avatar possum says:

    Sure be sweet if they’d take a little of that money and buy a politician. That’s the thing buying politicians. .

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