Earnings call transcript Q3 2023

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Operator

Good day, everyone, and welcome to American Outdoor Brands, Inc.

Third Quarter Fiscal 2023 Financial Results Conference Call. This call is being recorded. At this time, I would like to turn the call over to Liz Sharp, Vice President of Investor Relations for some information about today's call. Please go ahead.

Liz Sharp

afternoon. good and you, Thank

Our comments looking and forward predictions, may contain statements. estimates other today

of project, is Our should, like words use anticipate, believe those looking other identify indicate, estimate, and similar to expressions intended forward statements. suggest, intend, expect,

general regarding our include strategies our inventory growth our related products, and our market statements evolution, development, and share products vision, product our to statements and looking trends. focus, our and industry and Forward market strategic market also objectives, and demand in in opportunities for conditions

securities Our forward could the Risk subject risks looking results described statements current filings. that judgment our materially uncertainties. our cause represent to future, about our be factors and considerations are to are and other actual and they different various in

as a call as find You replay aob.com. documents can our on those this at website of well

Today's only accurate statements. no to that update call any we as of information time looking assume contains time and obligation is forward sensitive this

our Our actual results today. could from differ statements materially

important few about a our have call. today's items I on comments note to

reference we financial certain measures. non-GAAP First,

EPS, be measures are whether are results which intangible today's reference earnings adjustments. filings always shareholder Also technology non-GAAP assets, are costs, website. agreement other stock acquisition EPS. found discussed press referencing non-GAAP diluted GAAP posted call, we on exclude measures, as today's can we acquired when costs, release, our fully in cooperation of financial and reconciliations well financial implementation, income amortization as on The they costs tax compensation, Our to our of

that, I over the and Brian President CEO with Fulmer, call to Andy CFO. call is today's And turn on Murphy, us Brian. Joining will and

Brian D. Murphy

the focused financial the while within everyone we our and and for quarter, in ongoing several the growth, our investing delivering achievements. control, Thanks, Liz, in remaining future, the managing addressed operational term third long macroeconomic thanks important us. elements uncertainty joining In environment on and

dynamics the our received waters and of post encounter environment. sales third For that single we and that this space, of we to in indicates continue a the indicates by our Company environment. given data created from consumer our in demand our retailers in shifting choppy news. pandemic POS retail data many brands, others continue POS also result is choose is our A to the great products in We declined consumers digits. current the a believe which quarter reasonable high supply

during time, of major we out XXXX. and our the inventory In on normalized a pandemic. that to to are our have in focus replenishment continue chain issues retailers legacy we until several us supply initiatives, occur brands takes emerged destocking fact, same from later outperforming a in from process told however, to retailers This is work categories. to At other result, time retailers many builds believe orders unlikely the and return a as

choppy and consumers. product new control with quarter invest our can't us, within retailers expanded around domestic sales and manage third that can reflects solid business have our strength waters We execution our we and front. teams. in elements We our I While believe the on pipeline we excited demonstrated international we several of our control. the continued and innovative performance products new our that to the

for returned capital amended optimize we our consolidations and agreement our facility recent and We capacity our We lease have strengthened sheet to add growth. balance to future shareholders.

retailers innovative deliver consumers believe issues on and I the replenishing chain managing time the when from want. and well to result, to we pivot As positioned preparing their products inventory focusing initiatives destocking supply a truly inventories for are

that, me With details share from let some third quarter. the

pandemic levels. grew they quarter XX.X% sales net above in our third While declined pre year-over-year,

consists largely which of growth lifestyle includes our delivered over XX% of to business, our Grills. acquisition brands, consumer outdoor which direct Grilla Our of year-over-year

with resonating gauge one be brands open impacted are to sales dollars. not by buy sales retailer's are direct-to-consumer our limited levels those consider to inventory how our or consumers. We Since of typically well

of meat sales Maker, Together, include total over are XX% sales. to consumer these also direct which sales exclusively processing brands MEAT! of outdoor equipment Our generated sold our direct-to-consumer. Your cooking net and products, Grilla,

our remains lifestyle of delivered category up XXXX. outdoor growth pandemic pre our over in opportunity category, than Growth Our made exciting for including lifestyle XX% XX.X% more third business international of and the quarter us. of fiscal outdoor growth, an

United the States. a we dedicated fishing in the quarter, adding our sales manager resources expanded During for sales Southeastern

to therefore firm cutlery Crimson to the Europe We our core the in that rep known in well and a brand. key fishing optics the our strength firm Trace we also our Northeastern named long-term growth cover is well as territory. many brands element more recently, named a industry our Innovation represent U.S. in sales And as strategy. is

machine sales. products XX% the innovation and launched is nearly our Our quarter net two past robust third generated within new of years

products, that distribution Unlock and features strategy Our product which & host advance categories most Dock our new And the proprietary channels. process quarter, innovation. taken new a incorporate fueled of during we and to lines our enter of unveiled expand product that and together

more some now. me on those information of share Let

First, its that to strong reloading. we ammunition among mature established the now recently the participates maintaining appeal reloading the space, refreshed younger our historically reputation demographic, entering demographic brand's Frankford Arsenal the while brand. Enhancing in

that appeal new QX, products demographics. to we both In launched

easy full and make reloading line first intimidating entry of First, we timers. kits for a that introduced less level

is Progressive appetite ASP equipment. typically higher X-XX the launched We rave consumers. Press performing avid which from also for is have a reloading now reloading shipping. We getting reviews higher greater The X-XX

is the Puck, our and Lockdown that electrical a of our smart Smart a technology, X-XX state press in technology Bubba same Fish internal chronographs. team Scale our that art the Caldwell incorporates designed smart The developed engineering by

platform in technology, for its X-XX will serve products are internal additional a In as based the fact, pipeline. upon now reloading that our

reputation firearms. more indicated market. our stable solutions laser for & our to or as Next, optics permission brand play in broader, the its the CT Dock leader Trace Unlock outdoor market built Crimson and CT But in process has

allowing laser exploring ways to activation we CT's any determine into newly the So laser is to to finding rapidly technology, distance The optics. launched our result advanced binos user which XXXX our Rangefinding Pro capabilities Laser object went of and work HorizonLine yards. combine range to the instinctive incorporate

a very will HorizonLine for priced, Suitable binos of competitively Rangefinding this ship the variety applications and summer.

of into is by applications. Wheeler that consumers Our and the a is performance. tools brand highly brand professionals regarded precision line and that migrated demand automotive gunsmithing time over discovered including had We naturally industrial new markets, who

launched brand the distribution new packaging aesthetics refreshed opportunities and these sets for brand. we So which screwdriver represent recently markets, new for designed the Wheeler with and new

Dock accessories. relied our the to to have panel brand Unlock our SecureWall, For store their Recently, and led us beyond & vault. process The Lockdown new Lockdown our years, result system protect, organize gun think consumers proprietary firearms on and a that as makes only as standard a storage but baskets retailers it to and space shelves not hangers, about our to custom peg anything. for everything appealing well. from This with just create to well hooks to tools versatility firearms, works as to consumers, is

This for and our Builder, reach owner drop lets retail their spring, that the and new markets, we'll drag app markets consumer, Lockdown. SecureWall firearm into DIY buyers legacy the brands new product visualize beyond plan proprietary the launch broader expand unique easily software Lockdown The the and all SecureWall solution.

even with loyal Lastly, over a a who new our caught and attention large new of base market the consumer have represent And hunters past rebranding the Schrade cutlery variety Schrade. the for and we we've of energized year, products.

with brand hunters blade partnered among award we technology. bow Now a hunting winning, have Rage, broad its renowned for head

for a to never Schrade Our allow have collaborated recurring of option with and trio the These carry teams replaceable a whom field, Rage create to creates features are that unfamiliar the the us for blade the knives razor only consumer blade stream introducing The series and revenue most option. make knife. but a of sharpen it to hunters by consumables. Rage not consumers, Schrade in sharp, also for everyday also replaceable series great their

believe unique available culture beginning is many products opportunity industry companies be consumers completely in will select our our solutions brands that month. at shelves Based retailers ready. their to new are of The about a consumers in their innovation we we bringing market reflect deliver when feedback This as this in as audience. to our on These to our retailers, collaboration Enrage products the are the they're gives for these series dedication pipeline matter. a our to other of from each to leveraging our user moment and which excited

the we leveraging current includes While dynamics address environment, to business our invest of we strategy, long-term continue the in which model. our

through us and with providing During we agreement past grow our building, organically us expanded the that distribution headquarters to use our benefit long-term a lease providing full with center, the of creating Missouri and acquisitions. additional optimize consolidations third capacity, aligns to business strategic quarter, opportunities and plan at the

detail will expect we successfully yield Andy analytics capabilities also on grow. our completed provide we've will a addition, implementation, these and ERP we platform more investments. improve as enhanced In

to now, team I bringing our the our employees finish For successfully new line. express across system want the and implementation appreciation our my across organization to ERP for

foundation QX a strong our with growth. Our core that trends growth portfolio achievements helped brands in emerging outdoor positive and and nimble, our as prepare a future resonate remain Long-term us strengthen participation Company for consumers. innovative, with of

in these the opportunities excited brands for trends We the our long-term. about are present growth

With that, turn financial it results. Andy I'll our over to discuss to

Andrew Fulmer

making sheet we important delivered In our we you cost Brian. continued and me demonstrating to margins quarter growth. so approach achievements time, control. highlights, details. improved walk It and At same Thanks, strategic investments capital disciplined fortify to the deployment future was significant a effective several quarter, with gross the balance while through a maintained third the let support to

to QX quarter the XXXX. XX.X% in were Net fiscal and the pre-pandemic an sales million, year a of compared of decrease of prior XX.X% $XX.X increase third over

significant were pandemic QX in the year, of $XX.X quarter from sales Net of increase third ecommerce fiscal over last XX.X% decrease of channel pre XXXX. a almost but million of a our XX%

primarily year-over-year driven from sports decrease shooting in recent orders reduced online our retailers The was our category. by

efforts and net by of of QX of traditional two last to we direct-to-consumer XX.X% overall with brands, channel, consists lower retailers' sales inventories discretionary decreased in year, quarter only retailers, XX.X% Our sales is MEAT! combined DTC third over reduce sales brick which last spending. driven mortar Grilla. their Net our the believe in and consumer to due our year, which compared continued increased to

we XX.X% continue improvement over QX freight benefited costs levels. inventory of Gross the for to internal basis on make inbound at point reduce our XXX and as tariff XXXX. quarter fiscal initiative came reduced from progress mainly to margins a strong We in

also to with this strategy products tariffs help It's tariffs a flow that implemented, maintain margin believe higher was first of to our to costs time. has offset We note strategy when long-term steady us helped our strong inbound freight targets. and over margins gross new important were achieve

net in from expenses and $XXX,XXX reduction down due distribution of the last sales. variable GAAP driven lower roughly QX year selling operating for $XX mainly by quarter costs million were to the

million last Non-GAAP $XX expenses million year. in they operating expenses occur. and compensation Non-GAAP non-recurring as in exclude operating QX QX stock were of to compared expenses certain amortization, $XX.X intangible

that have headquarters XXX% As building our occupy XXXX. Brian we agreement Columbia, and X, January will amended announced our space lease noted, Missouri of in we the beginning

million annual $X.X expansion by will November Crimson in We XXXX. Grilla completely savings lease We estimate will support our were plan. and and that that expense roughly growth long-term inorganic should Trace be organic this completed be the the additional from offset consolidations and the believe

earnings a $X.XX We QX last details closer compared non-GAAP $X.XX X QX And for year. was GAAP the with as was year. $X.XX look of compared forward last January EPS $X.XX to loss providing more to effective to EPS for date. of

share are count million figures diluted approximately based fully QX shares. on Our of our XX.X

full-year, shares. diluted fully For roughly to the million be XX.X expect count share we our

net for The million the loss to to mainly compared EBITDAS reduction was resulted $XX.X contribution year. lower last sales. was that from due $X.X the Adjusted quarter million

an $XX.X million cash, with of credit. the increase and result $X.X flow. million through quarter balance to the Turning return our on pay repurchase sheet down In from program. continue share operations from our significant a generated sequentially ended to cash second We capital a our we our balance million sheet, quarter, and the strengthened cash to $XX that QX, included shareholders of of line

combined cash operating this cash year the third by $XX.X sales. higher million in QX to QX concentration to $X.X Positive was of a decreased direct-to-consumer in decrease quarter $X operating sales of the due receivable million last almost outflow sequentially year. million Accounts from net flow with for compared

$X.X is Lastly, cash million This result generated $XXX,XXX. fiscal free cash end By of of of quarter, $XX.X CapEx to flow the we million. the and in QX of roughly great compares QX free XXXX. a was in outflow

high inventory. fill Turning fiscal rates levels our supply Last now we with to recall built keep to you'll year, to risks mitigate chain and in customers. inventory that our our up

in and decline taken and specific our have the capital demand inventory to improve consumer been successful approach fiscal as initiatives $XXX.X end million. working the efforts our our the current we million. over year, developed to a have of our to alone, nearly inventory at and end at our However, $XX started metrics. Those $X we lower shifted QX we quarter inventory $XXX.X million from third our of million reduction reduced by quarter, first of inventory In

Going and our cash to enhance forward, cycle. reduce plan our we inventory further conversion

capital to expenditures. Turning

million $X.X We product and came total, between million Within XXXX $X.X range CapEx XXXX million. we million be project lower $X We of and by below related for of ERP $X.X our for to in between and we the total expect expect that budget. to and expect $X CapEx be quarter, and million lower CapEx $X.X now lower which tooling maintenance fiscal provided million last ERP spending costs than tooling costs. driven to fiscal project

shared am Microsoft now live Brian new report, ERP fully to and pleased DXXX. on equally are I our we As system,

we the phased As our me approach heard through talk you've worked about the implementation, two project. to

of Specifically, project business on an This live February to X, excellent in we go result. small second scheduled of phase our the yielded of end with XXXX. XXXX. October portion went We the live a

that The logistics system go helped live enhancements first us identify improve would our function.

made live whose to hitch. the a success go project. the changes we in this without those executed of February Kudos entire the team dedication drove implementation commitment and overall So, and

operate costs both in incur $XXX,XXX our fiscal as of previous In to duplicative parallel. to one-time total and in we costs expect in $X.X XXXX, DXXX as well a ERP ERP million

when aside, an in we to are non-GAAP both expense operating the longer costs As calculating as will complete no amounts adjusted systems duplicative run be treated now Both costs non-recurring need and parallel. as EBITDAS. implementation

million As position line to earlier, just in debt on million us paid us places maintaining a that I returning positioned available in net outstanding. and of capital mentioned capacity. strong with balance credit, $XX This we capital down well which leaving shareholders. very three $XX our our priorities We million negative organic with up so are a sheet M&A to on remain focused address are to we allocation growth, $XX

we shareholders out meantime, remain seek $XX approach. In M&A in the opportunities, continue we our to program. return our disciplined As will million through to we repurchase capital

During we of QX, an shares shares And have repurchased outstanding price $X.XX roughly under X% since we September, average XXX,XXX of program. repurchased at our a share. the

to distributors consumers our consumer while and as outlook. by to macroeconomic now Turning in continue demand patterns. down their uncertain interest ordering work spending reduced products from In overall and that believe elevated our QX, inventory driven retailers they we less on see elevated environment, levels, discretionary are uncertain navigating rates. inflation We this through

participation are outdoor We believe to to on brands trends. positioned our long-term well continue capitalize

out. short-term However, likely we a affecting the fiscal current the will take also is believe couple us dynamic in of to quarters sort and

gross we inventory. since exceed the costs As XXXX fiscal prior reduced in sold now a cost environment result, the promotional expect year due XX%. could have much is QX, we in promotional some as our some In pre-pandemic shooting fiscal category. to of last year seasonal sales expecting environment levels now to freight believe improvement We're QX margin off for XXXX with the sports we by similar as that in over programs we net that primarily a QX normal saw higher

from sequentially reductions by QX, reduction driven variable a we volume from to trade no to and sales costs in distribution selling costs in major regard both OpEx, QX spending marketing having decline expect and OpEx With from shows. lower

objectives. in containment where areas grow our identify continue investments makes needed to mindful execute term, long-term business to on will being sense short of strategic and the for the while it We cost

fourth of year, the current through our brands process, and way key platform quarter the & They move standalone independent our fiscal completed final of platform, have a the business, we Unlock investments excited our for and positioned each we've setting for of ERP creation XXXX, websites name are a include of launch of off infrastructure. the as of our Company robust the we several in our Dock strengthened have up establishment successful our spin that the structure, our our the for differentiating fully the new Company major formation our of about Since brand implementation we ecommerce As future. growth.

have win our well markets including the investments categories, and helped expand as entry in us Those shotgun as new customers with sports Claymore. a into Caldwell

Our entry Maker Your with the creation, Grills outdoor of our growth launch cooking acquisition Grilla and MEAT! into of and the brand.

capital environment our our referenced. look growth ahead. see To focused to long-term remain platform for the combined approach ability we of build to management demonstrated disciplined beyond represent Brian and current on choppy a with the that the that achievements waters strong opportunities These

that, questions call from operator, for let's With our open the analysts.

Operator

Thank you.

begin session. Instructions]. Lake Ryan go question Street. We question-and-answer from ahead. Please And will the the [Operator from be now Meyers will first

Ryan Meyers

guys. Thanks questions. taking for Yes. Hi, my

you it inventory little the for since weighted. First can a half one me, more I if might any and be like unpack sounds improvements retailers quarter bit last it we back Have wonder of bit seen little better. level XXXX of just at a kind kind

of of what half see going the year? is of you kind level kind of confidence Just that that guys here the your are in to second

Brian D. Murphy

a swing Hey jump Andy, Sure. feel in. it's and Brian. free at I'll then to it Ryan, take

showing it We we're our last to inventory over saw seeing this at wise, what So pretty relates as retailers. quarter. strong a

-- QX. POS down And inventory was channel. it XX% to was from it over about So sequentially the was down XX% actually QX within

actually POS, then set was outdoor was think performed digits great sports a that's high we mix, softer. little down single result. we lifestyle And bit very shooting there a And some strong well. So pretty that, within

continuation, channel, up back of that it within things does calendar based that decline on hearing from what like the on in those pick will second seeing, look we're this in what retailers, kind the based on half of facts and year. based the But our we're inventory

Ryan Meyers

the mix, of what other And the I'm some XX% it. the of the curious kind looking of products. it you Got growth Are then but part outperforming like products, looks they just represented new on at business? of these said the new rate

Brian D. Murphy

see in the Brian period product seen data a we anecdotal the Without as purchased much call winding inventory in out is give was it much again. And just playing destocking wanted nine of in time now it where down because which This over is retailers or dynamic last inventory. possible. that me, of as front months obviously haven't adoption or of as front new directional, I'll we us you six sort of and the

So like our trailing the little on actually a would new basis, expect bit to higher placement. more on be some whether you a we've so held of we say in XX% normalized environment because or as know a up product that I number

think extremely so are is now right more well Frankford everything and recently the the I performing and new selling And well X-XX overall products right door Caldwell going the coming the in that's Arsenal incredibly are and Claymore some like out.

great some of held our let through because of overall of seeing with a through, percentage XX to think back inventory some we the I that flow next we're total in traction see come that more other months. as acceleration new but So begin products, the business, to you'll

Andrew Fulmer

-- add is of last I Yes. sales, to previous we've And quarters. would we as Ryan, was in this quarter XX% Andy. so high total XX% as just been were that,

Ryan Meyers

my for taking helpful. it. Got Thanks That's questions.

Brian D. Murphy

Ryan. Thanks, Yes.

Operator

Securities. Wold is from from B. ahead. go Eric Please And question Riley the next

Eric Wold

sales. lack a headwinds guess the have for that's A the follow-up on pure a down inventory. prior one. the That's for quarter, not single just the high about one, couple just of POS, taking any in questions. you Think I adjusting Thanks digits year-over-year from of channel, may the question.

of that how channel, get much maybe to the think products you impacting of trying the in lack POS. Just is a inventory some sense

about on of If maybe seeing what pockets data? you're you the in across POS based talk the strength terms can of weakness

Brian D. Murphy

Yes. in. Hey, it's Brian. Eric, And jump to feel Andy, free

weaker than per board. then little like by It's than that. shooting of sports So I And better bit digits number across se. the single that, that is would and not really outdoor I say it's was a -- mentioned inventory lifestyle, high limited lack

because we really are different base. have shooting sports on cycles. seeing dealers customer of very some previous happened in the particular they -- based some in do dealers cautious So previously are cases being Those in what's

the outdoor are But ago. That products And the lack or then or say you've there's think number. no, not different overall, environment versus some got not you've have which dynamics in products months of new lifestyle demand. got no inhibiting XX maintained side, that I that

Eric Wold

you a the bought it. the terms then are sports and that of pre of Got partners supply business headwind. I of OEM past and was of products kind chain plans ahead them? of OEMs, terms outlook what issues and on sales shooting into And their kind the driving side, terms little seeing in from know bit the I production guess a of get their side that of what's in in your in the

Brian D. Murphy

This Yes, is great Brian again. question.

down, they bundling for So traditionally, when do opportunities firearm slows look sales today. continues and that

So are opportunities our OEM seeing partners. we with

OEMs. One parent out the more have from of work spinning our of we benefits with former ability Company to the is now

those and certainly are those. So on we're coming opportunities jumping through

Eric Wold

of And just levels a mitigate get outlook along your the about the question it. sales continued from assumption to your then me. to What's this Thinking end down efforts for can fiscal Got for updated by with inventory year? you inventory. reasonable internal year final

Andrew Fulmer

our been XXXX, was ended was high at you fiscal XXXX of We kind Andy. Haven't backlog too at of million with fiscal definitely that that QX high. pretty XXXX, point. public is was This too But but of Eric. that Hey, look at low a it if at because said $XX number, inventory. time we back

of $XX going team our number reduction. getting excellent job an So million that stop we're down, And done since QX. the to not has

reduction QX into and to fiscal would XXXX then well. as I So, look forward

Eric Wold

guys. you, Thank Perfect.

Brian D. Murphy

Yes, thanks, Eric.

Operator

Matt next MKM. from Please from ROTH The is Instructions]. ahead. question go Koranda [Operator

Matt Koranda

a why follow-up the there to other channel Good say things they customers are think guys. enough. you the maybe before to before inventories need need high here. just than we robust on second What a the assuming Hey, traditional pull to other the trigger they on retailers they that just afternoon. just do Are I on pull went in XXXX start orders? see guess half way more see your trigger Maybe down restocks? of restock

Brian D. Murphy

Yes, great is question. it's a This Brian.

the of think they see to broader one and reduction where is too hear all product retailers inventories we overall theme from have they down. I like come overarching our again of this much would

is more certainly need as seeing of pockets some are at, inventory what going to the sound stabilization inventory think a this then of they're They're just many and little velocity on look bit finance, but is because a I certain overall back terms depending they're saying We looking own at the position to of But going weeks end models to see, they consumer we looking what they of their it's and retailers. with the expected hand. be. POS want how do on running

for products bit there season are they that that still more not is because have be more here a And just cautiousness in seasonal from yet, little but last certain may nature, year. product

for so those little of some bit of categories. complexity it's think one just a And extra -- little I

robust people activity see the retailers liked to as see. wanted we consumer probably wasn't much demand. holidays So into did But certainly there to up going as would it have sustained and so and our was

there. of little So quarter get for heading really the the to those some camping, into consumer want just we types retail we of that get hunting, first and get things, fishing, we turkey into inventories really than as just to does into new season, higher calendar into what expected the see led bit

part that's think it. I a big of So

Matt Koranda

bit that going the provide that quarter. helpful. in channel guys And much disaggregation to have expected. it organic any to Grilla decline. should influenced on within sales trying seem be than get because the channel How Just the Amazon that there? contribute? ecomm had then we we can thinking That's a about Okay. for that you an unpack to little just did Anything Its did how sense of more

Brian D. Murphy

it's Matt, Brian again. Hey, Yes.

sales for within includes be listening, So retailers. might others that to online ecommerce, ecomm

certainly sales. Amazon, customers mentioned our of also and they're You direct-to-consumer one then

mentioned was we up, direct-to-consumer was so. I think So or XX% like it

number part the acquisition Grilla. Obviously, of of that includes

break want direct-to-consumer only would number, last that you within direct-to-consumer I organically were what to our up tell it don't year. I but out, So brands over two

trend some continues the to that positive downs to chain. retailer of very pull the with with that direct and subject that to through a that's and So us and for consumer connection isn't supply speak ups

question Amazon. you -- have did Sorry, you And Amazon, you mentioned mentioned a about Matt,

Matt Koranda

that it Yes, consumer inventory anything in just sales going just kind of channel it just kind wanted terms in your on the was demand or anything if end to channel? was that of unique see in of constrains softer there's there, availability,

Brian D. Murphy

It's the continuation really of overall reducing for of online the retailers inventories. all our theme

Matt Koranda

Got it. Yes.

end a channel. it's So destocking end in issue necessarily that not just issue, an to

Brian D. Murphy

Exactly. we is to seeing we're inventory that And point XX%... POS that are the over just to that said with down

Matt Koranda

Is there think that channels -- you you in that ecomm POS in the difference channel the should we mentioned? about material versus any have traditional

Brian D. Murphy

No.

Matt Koranda

in same that high the of No is Or terms digit? down single difference.

Okay.

Brian D. Murphy

No difference.

Matt Koranda

of update, thinking environment of are any pipeline, the the Got difficult What new you just seeing Could given are macro last in it. you're how give about just you And that dry loss more an sheet, on balance us those Brian, then shaking just one, I sort wise? mean powder. opportunities strong M&A? to

Brian D. Murphy

Yes.

deals seen to declined. has of So banker we fewer investment deals led so far have coming market, number

you'd of advantage previously occurred they not were nine months That As sellers got that show trying rate yet. ago. And the now can sure of I reset run think having that are to take has make improvement. you've six, expect expectations to market and kind

a whole market. coming seeing not we're lot to So

work done that is how With which Grilla said, came of proprietary to we ton to a pipeline, try about. a cultivate have

there some would a or of distress in like past, some situation as may exit alluded could come seeing They help business. that supply where It's founder to say, the right the maybe cases, those are deals we in we out. so I've time. with in chain to need just not And be more where a and let's help,

is on opportunities, and depends it's activity overall smaller So, the circumstance. with down. on certainly, it there are more their founders and but side But

Matt Koranda

Okay. sense. leave Thanks. guys. I'll it Makes there

Brian D. Murphy

Thanks, Matt.

Operator

and does conclude closing Murphy gentlemen, this over session. I Ladies our any conference to for remarks. the to question-and-answer turn back would Brian like

Brian D. Murphy

you, operator. Thank Great.

Brands We work exciting forward California in for I move know, want everyone to us toward week path to and participating Conference today. in want continues our dedication look I loyalty, hard an Before whose Outdoor be American the ROTH you to thank to see quarter. joining future. next we of to some you employees we'll close, Thank forward next again let and with hope there. you the on speaking

Operator

And now thank for you todays presentation. conference you. The concluded. attending Thank has

may now You disconnect.

American Outdoor Brands (AOUT) 9 Mar 232023 Q3 Earnings call transcript