American Outdoor Brands, Inc. reported its financial results for the three months ended July 31, 2024, revealing a decrease in net sales and a reduction in net loss compared to the same period in the previous year. Total net sales for the quarter were $41.6 million, down $1.8 million or 4.1% from $43.4 million in the prior year. This decline was primarily driven by a 10.2% decrease in e-commerce sales, which fell to $16.5 million from $18.4 million. Domestic sales also decreased by 6.5%, while international sales saw a notable increase of 21.2%, rising to $4.4 million.

The company's gross margin remained stable at 45.4%, consistent with the previous year, although gross profit decreased by 4.0% to $18.9 million. Operating loss improved to $(2.6) million from $(4.1) million, reflecting a reduction in operating expenses, particularly in general and administrative costs, which decreased by $1.7 million year-over-year.

Net loss for the quarter was $(2.4) million, or $(0.18) per diluted share, a significant improvement from a net loss of $(4.1) million, or $(0.31) per diluted share, in the same quarter of 2023. The reduction in net loss was attributed to lower operating expenses and improved operational efficiency.

Cash and cash equivalents decreased to $23.5 million as of July 31, 2024, down from $29.7 million at the end of April 2024. The company reported a net cash used in operating activities of $(4.4) million, contrasting with a cash inflow of $5.2 million in the prior year. This cash usage was primarily impacted by a $13.4 million increase in inventory, which rose to $106.7 million, reflecting planned purchases for the upcoming seasons.

American Outdoor Brands also engaged in a stock repurchase program, buying back 42,017 shares for $381,000 during the quarter. The company has a remaining authorization of $6.9 million under its $10 million repurchase program.

In terms of strategic developments, the company continues to navigate challenges posed by tariffs on imported goods, utilizing a duty drawback mechanism to mitigate some of these costs. The focus remains on innovation and product development across its diverse brand portfolio, which includes 21 distinct brands catering to outdoor enthusiasts.