The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Alex Sturnieks - Lake Street Capital Markets - Analyst
: Yeah. Hey, guys. Yeah. Alex turns on the line for Mark Smith today. Thanks for taking my questions. First one for me, could you give us more insight
into the purchasing time line for retailers? You noted that you're seeing good reception from retailers. But I guess just curious if there's any other
drivers that give you confidence in that longer-term sales outlook?
Question: Alex Sturnieks - Lake Street Capital Markets - Analyst
: Okay. And then, given some weakness in the shooting sports industry recently, you saw some good growth there. But could you provide some
additional color on how products in that market performed in the quarter?
Question: Alex Sturnieks - Lake Street Capital Markets - Analyst
: Okay. And then last one for me. And you also mentioned it in the prepared remarks a little bit, but in terms of the balance sheet, are there any new
changes to your philosophy around the use of capital between investments in the business, buybacks and then M&A, I guess, more so just focused
on what are you seeing out there in the M&A market right now?
Question: Alex Sturnieks - Lake Street Capital Markets - Analyst
: Perfect. Thank you, guys.
Question: Matt Koranda - Roth Capital Partners LLC - Analyst
: Hey, guys. Good afternoon. Maybe just with the fiscal '25 outlook, if I combine sort of the full year with the third quarter that you're giving, it suggests
that we are seeing an acceleration in sales heading into towards the end of the year here. Just wondering if you could put a finer point on like the
items that are driving that acceleration?
It sounded like, Brian, you were saying there's some additional willingness to take load in given the innovation product that you're introducing.
But is there also some play out here of the sell-in that we get from MEAT! and Grilla, especially Grilla, I guess, entering the traditional channel?
Maybe just any additional color on what you're seeing for the rest of the year here in terms of the acceleration in sales?
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DECEMBER 05, 2024 / 10:00PM, AOUT.OQ - Q2 2025 American Outdoor Brands Inc Earnings Call
Question: Matt Koranda - Roth Capital Partners LLC - Analyst
: Okay. No, that's good to hear. And then maybe just the further outlook on fiscal '26 that you're providing. I guess -- wanted to get your thoughts
on the philosophy of why provide something -- I mean, it's not so far out, I guess, but at least in terms of Wall Street is concerned, it's pretty far
away. And I guess the mid- to high-single digit growth outlook that you're giving, maybe just any additional color on what's driving that?
Again, is it sort of some load-in you're seeing on the traditional channel? Is it some demand inflection that you've observed? Maybe just additional
sort of rationale for why provide an outlook that's kind of that far out?
Question: Matt Koranda - Roth Capital Partners LLC - Analyst
: Okay. The other thing I wanted to cover was just on the gross margin front. Maybe Andy, if you could walk us through the headwind on a year-over-year
basis that we're facing for the third quarter, especially from the tariff amortization that you mentioned. And then just also, I guess, any clarifying
thoughts or comments around tariff exposure that we still have left with the new regime coming in?
Question: Matt Koranda - Roth Capital Partners LLC - Analyst
:
Question: Matt Koranda - Roth Capital Partners LLC - Analyst
: Okay. Super thorough. I'll take the rest of mine offline. Thank you.
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