American Outdoor Brands (S&W, and so forth) Crushes Year-Over-Year Quarterly Sales

AOUT inventory chart from Yahoo Finance

American Outdoor Brands Inc. (AOUT), father or mother firm of many brands together with Smith & Wesson, Thompson/Center, Crimson Trace, LaserLyte, Caldwell, Frankford Arsenal, Wheeler, Bog, Schrade, and lots extra has had a banner quarter. Compared to the identical quarter final yr, Internet gross sales had been up 65.7 p.c, from $47.7 million to $79.1 million.

This gross sales enhance, mixed with a 6.9-percent revenue margin enhancement, result in a Internet revenue of $7.three million, which is definitely an enhancement over the $393,000 Internet loss from the identical quarter final yr. EBITDA became greater by roughly 182 p.c.

President and CEO of American Outdoor Brands, Brian Murphy, mentioned, partly:

We consider we’re witnessing a brand new foundational stage of client participation in out of doors actions, an curiosity in the direction of private safety, and an curiosity in adjoining home-based hobbies that encompass out of doors journey, creating significant, long-term development potential for our enterprise nicely past 2020.

Not to be Debbie Downer right here, however I wouldn’t depend on it. 2020 has been an odd yr — maybe you’ve seen? — and whereas some industries took it on the chin, others have damaged all information.

One frequent theme amongst companies which can be killing it this yr is out of doors actions. As many enjoyment choices had been shuttered and social distancing turned “a thing,” plus the receipt of sudden money from the .gov earlier within the yr, gross sales of horse trailers, grime bikes, mountain climbing gear and apparel, tenting tools, fishing gear, truck equipment, golf tools and tee occasions, shooting provides, bicycles, yard video games and cooking equipment, park passes, and nearly each different piece of package or reservation payment associated with getting out of 1’s house noticed document demand.

American Outdoor Brands Inc. serves the out of doors demographic. A demographic that grew and spent cash in 2020 like mad.

But is it a brand new, foundational stage of participation? Is demand for these sorts of merchandise and actions going to stay at this stage, not to mention develop, into the long run? Or, because the vaccine rolls out and eating places, film theaters, sporting venues, bars, workplaces, casinos, youngsters’ play facilities, and so forth. open again up will the lake nonetheless be the busiest it has even been with fishermen, will tee occasions nonetheless be booked extra solidly than ever earlier than, will individuals proceed shopping for tents and mountain climbing footwear and reloading tools and firearms for the primary time?

I’d quite not be, however I’m skeptical.