American Outdoor Brands Inc Q1 2026 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Douglas Lane - Water Tower Research - Analyst : It sounds like some of that excess retailer inventory you talked about on your last call has been worked off, but maybe not all of it. Is that fair? Do you -- still do you think have excess tariff-related inventory at your retail partners?

Question: Douglas Lane - Water Tower Research - Analyst : Okay. And also in managing the impact of tariffs, you talked about pricing. Can you elaborate a little bit more on that? How much pricing have you taken so far? How much do you expect to? And the timing on that? Is this going to be like a one-and-done deal this quarter? Or are we going to see some pricing being layered in as the year progresses?

Question: Douglas Lane - Water Tower Research - Analyst : Got it. That's helpful. And just -- and that comes back to the innovation that you talked about. And I guess I'm trying to figure out in my mind, does product innovation become more important or less important given the uncertain consumer environment. I mean how much of that money are you getting a return on versus how much of it is important to get through the higher-margin product?

Question: Matt Koranda - Roth Capital Partners LLC - Analyst : Apologies if I'm retreading on stuff here, but I'm jumping between a few calls here. I guess the main question I had for you around the quarter was when does the order of choppiness sort of settle down in your view? I know that there's a lot of crosscurrents right now with supply chain management from your retail and wholesale customers. How long do we think it takes to settle to kind of get back to a normal cadence of order flow? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2025 / 9:00PM, AOUT.OQ - Q1 2026 American Outdoor Brands Inc Earnings Call

Question: Matt Koranda - Roth Capital Partners LLC - Analyst : Okay. In which brands are you seeing the strongest POS? Are you positive in certain areas that you can highlight for us? Maybe just quickly touch on where POS trends are most positive and then maybe where they're struggling a little bit more?

Question: Matt Koranda - Roth Capital Partners LLC - Analyst : Okay. That's a helpful overview. And then I don't know if you touched on sort of M&A funnel and how we think about pipeline of opportunity on the acquisition front, but I'd love to get an update on that and where things stand.

Question: Alex Sturnieks - Lake Street Capital Markets LLC - Analyst : You got Alex Sturnieks on the line for Mark today. Also kind of just sifting through some things here. I'm not sure if you already covered this, but you mentioned some variability on orders into Q2. But just curious if you're seeing any signs that buyers are trading down or shifting toward more value-oriented products? Or do you feel like they're still leading in a premium innovation despite the broader macro pressures?

Question: Alex Sturnieks - Lake Street Capital Markets LLC - Analyst : Okay. That's great. And then switching over on the gross margin side with tariffs and sourcing costs in flux. You mentioned you can probably hold the line where it's at right now. Just curious like what are the biggest factors you're watching that can push the outlook higher or lower?

Question: Alex Sturnieks - Lake Street Capital Markets LLC - Analyst : Okay. Then another one for me. You mentioned you moved some production outside of China already. Could you help us take through how much of the portfolio still needs to be assessed whether or not to be moved? And then what kind of cost or execution trade-offs are there if that's necessary?

Question: Alex Sturnieks - Lake Street Capital Markets LLC - Analyst : Okay. That's great. And then last one for me, if I can fit it in, just kind of going through the channel side of things. On the e-commerce side, given that a lot of your sales are concentrated with the largest online partner and then they're readjusting their purchasing patterns, are there any strategies you're pursuing to broaden that mix and build a bit more balance in that channel over time?