AOUT - Earnings call 2 2024 | American Outdoor Brands, Inc.

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Operator

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

Second Quarter Fiscal 2024 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.

Elizabeth Sharp

Thank you and good afternoon.

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

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

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

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

replay You contains can update this obligation of aob.com.Today's website any information on time-sensitive time, no statements. find only call at our and those call documents as a to is forward-looking as this accurate that assume of we as well

have statements could results today's actual Our our comments note call. I differ important on from our items to about today. a materially few

certain First, measures. reference non-GAAP financial we

of income intangible Brian. adjustments. on exclude with earnings turn us reference President they non-GAAP Fulmer, today's as call release, are acquisition our acquired that, And on which found today's stock our and Murphy, is well compensation, press are be fully to call the other Brian and agreement in Our discussed we and EPS, we filings GAAP always financial implementation, non-GAAP I'll Andy over diluted Also, of costs, to today's financial as facility when measures, costs, CFO. posted on CEO; referencing technology website. amortization cooperation, shareholder reconciliations consolidation results The measures are costs, costs, assets, tax whether call can EPS.Joining

Brian Murphy

as cautious came quarter Thanks, that Liz, open well joining expectations buy in a We capital delivered of view strategic and sales our X.X%, and that and that of everyone we given I'm which growth management, in second their result favorably dollars us. quarter. and as progress remain our for our long-term ongoing available ahead sales in objectives. net about to solid inventories with demonstrated of results, performance support pleased the continued in thanks to retailers

to quarter reflected XX% than second over of outdoor has sales our quarter acquisition pre-pandemic of fiscal XXXX, believe fiscal year-over-year our growth rugged products our Grilla activities. to of a quarter growth XX% nearly and compared pre-pandemic long-term our Grilla of of XX% business. including Our than also Grills this grow XXXX, more more XXXX.We cooking, hunting, success grown lifestyle second our outdoor part of outdoor of delivered outdoor fishing, in the which of On second category, the related consists in result reflects category acquisition. camping, basis, to fiscal this I long-term our strategy the including

Academy meat well expansion authentic industry-leading to exciting loyal became we MEAT! as available In outdoor join equipment great seek following to is developed a decline to premium, into category with the where a category who in of personality. originally quality, online. October, partner quarter. and our second net all category sales year, nearly We introduce commitment in-store, its providing Growth for customers user existing an select retail the XXXX large lineup ongoing launched to Academy through Academy in of with our in in and entry second new, a Your to team's a to this sports manufacturers and consistent fact, opportunity a MEAT! Academy and brands direct-to-consumer quickly in quarter products reduced initial warranty, inventory MEAT! MEAT! product insights. second infrastructure is a lifestyle with professional-grade strategy online compared lifestyle were from to MEAT! potential locations and opportunities.Accordingly, brand, number brick-and-mortar lineup sales select its find Sports consumer XX% quarter saw as proud to the its slight stores, consumers a to or Outdoors outdoor whether sales us bring firearm and citing our reflects appreciate education, leveraging our our customers.Our comprised our also result our heightened Maker Harvester them, consumers in Brand prior of equipment. ideal as channel expect our forces place at drive of of exclusively Lane shooting our consumer its processing that XXX reports Beginning retail new strategy lifetime out demand. total

and firearms produce by shooting in aiming, the related related second sports and I don't BUBBA in quarter. led solutions was shooting, for category e-commerce online by strength the cleaning our discussed largest shipments sales and categories driven also in and sales now include initial fishing ammunition, or BOG channel the maintenance, growth defense.Turning year-over-year, supported we increased by retailer. Although channel and storage, our safe primarily products MEAT! our launch Net through to under to just self the hunting traditional strong, our in brands. our target in channel sales Sales

category they our helped shooting the of uncertain first, our anticipated, of brands of to X regard channel helped in half represent consumer While lower from point-of-sale well.With they sports shooting our than retailers about the we gather and in second, in of to with they channel sales. originally inventory consumers data reasons: inventories sell-through, and environment; as came that products otherwise several higher deliver promotions this for were that into beneficial retailer we sports hands

lifestyle quarter's pleased flat, was with was we relatively the environment. result POS were slightly a overall. data This down Outdoor given current

in trends a and basis, declined the are category attach the category, that driven sights on solutions, drop posted offset quarter sales shooting decline the relative in with Our shooting firearms. by my shooting slightly the products earlier for that channel those sports of category. inventory Products. category out category indicates an to that consistent want sports in lifestyle to Black turn partially balance outdoor a of year-over-year adjusted performed the with decline also Friday for the I well The and POS a the aiming data products discussion, our comments.Before was sales channel by a which of Sales in in weekend almost increase quickly tend the to I primarily close optics our MEAT! results, NICS closely. follow entirely underlying data preliminary to sales direct-to-consumer are year-over-year Grilla sports more these and our to sales

and on element Again, long-term preliminary on growth. year-over-year strategy. basis, ever largest MEAT! on through nearly innovation. turning Grilla exciting Friday a day had XX% in Cyber Innovation a ever had For Black combined growth MEAT! the its single delivered largest X-day period Monday, from Black Grilla its and sales Cyber and to Friday but is core to our results.Now, are sales key Monday. pretty who day single we

of Claymore to are DeathGrip throwers what matter, line. BUBBA's it that or fishing means We moments with in clay that Caldwell's whether reenvisioning operate BOG's Scale, rest with line, gamifying expectations the reshaping battery-free stability new it's deliver defining Fish with enthusiasts' hunting Smart

believe unveiling that and SHOT This unlock net of innovation teams enthusiast new our quarter begin new typically XX% new backed extensions court we discerning, share on January. solutions, sales.While by we're for generated dock fueled introducing by will this our stream our our across and that sports to and quiet brands, engine, by increasingly brands of are placement. time in able process, market us a the Show work As innovative consumers we to of of upcoming a over consistent with hard product shooting second of year capture products who is regard at at introductions, are number several gain

touches exciting putting new we're finishing for from on addition, product plans you'll very hear the about launch In Grilla soon. a

campaign, represents accessories e-commerce While this brand several generated out our dock the significant first honored Your over we receive of for of Manufacturer a Association the Grilla introduced the since and of innovations the Salesforce also lineup Accessory our Evolve launch by and stay recently Year platform in were and when a achievements then innovative Visit check new for new We've we'll at products tuned Grilla National to this launched Backyard grillagrills.com, campaign Grilla named Wholesalers. recognition coming our were website. the our we in launch us to and under we've ported new Grilla of unlock by acquisition, process. new products Goods a number upcoming quarters.Lastly, Sporting

financial testament are turn at well our to teamwork to it Caldwell discuss the took Caldwell that, a Our AOB creative Accessory. success.With over our for These awards very home under teams and Best our core whose talent brand of I'll Andy and results. are throughout honors to New as

H. Fulmer

Thanks, Brian.

to We program, while quarter. strong reduced we delivered sheet, maintained sales by are return shareholders balance with pleased we our Brian and consumer stemming inventory and all through to for mentioned, results challenges cash growth, repurchase our share second the demand. continued from retailers market to management cautious navigate we a net continuing As

net compared above to of sales included fiscal QX year, launch X.X% X.X% you firearm last $XX.X million the in while of sales pre-pandemic came expectations adjusted align QX in Let $XX.X QX increased driven XXXX, our was which me walk increase Maker to sold a On in by to the net closely QX year. NICS.On of last through million which sales in both an result over sales by of net rugged last products. traditional to last by increased basis, at year Conversely, tend with details.Net and to in entirely compared are increased acquisition aiming our sports the QX sales lifestyle net retail more decreased by MEAT! for X.X%. shooting year, our products, e-commerce included solutions and continued a category which over sales, consumers, increased Your hunting channel a Grilla. in including and XX.X% strength X.X%, a by outdoor products, that of decline OEMs XX.X%, and basis, QX by outdoor sales Compared

as online our QX gross a activity XX.X% our well compared As QX the reminder, that brick-and-mortar to to retailers Brian margin year by mainly sales sales to not increased websites have channel current stores.Turning from was XX.X% mentioned. own in due year. do for in decreased Gross The last that as promotional includes to e-commerce decrease margin. direct-to-consumer

that operating increase higher selling to and year. the than a uncertain level Although to as believe reasons mainly compared QX sales expenses to up higher the in amortization, to anticipated, operating million expenses facility On increase in we expenses. slightly I second last lower intangible for in $X.XX cents for the of $X.XX net $XX.X relating driving million listed. due they consolidations quarter year. occur.GAAP in $XX.X to in and we distribution in sales $XX.X $XX.X GAAP net to IT, completed The expenses operating basis, driven EPS compared was Non-GAAP second to just exclude cost quarter effective compensation, year basis, this million last a market.Turning quarter last stock variable compared operating programs rent certain non-GAAP was non-GAAP netted this were compared for year. expenses $X.XX and was by the nonrecurring to million, prior we were QX were QX for decreases by was EPS promotional year in the the year. On this insurance, the last $X.XX

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

sheet now XXXX, be quarter was year.Turning count Adjusted to compared for $X.X to cash fully will the million fiscal XX.X diluted the million million full we $X.X EBITDAS share balance For flow. last expect shares. and our about

seasonal business, We typically strong that quarter of we million seasonal Due after typically operating ended and is to the as We the cash Then, continue cash in the no increases nature quarter generate from those of accounts approximately the reflects inventory, result case which sheet. and $X.X with both lower common repurchasing inventory of second this our receivable operations cash outflow, our was maintain the we debt million second of collect our half in a quarter. our levels. stock. $X.X and the and receivables year, second of to balance

The as the XXXX driven We mainly increase over expect true increase approximately second million. need sales The the XXXX. for fiscal $X.X The well of the order beginning resulted capitalize of end to to fiscal net majority as million, of change was quarter. higher in tariff-related hold of quarter our decision quarter.Our increase by $X.X by for in grew accelerate outflow driven million the in this the $XX Operating AR of second product a product that driven in savings inventories was as balance the higher increase by half the cost cash of yield well. an from second accounts certain quarter of mix. toward to variances a safety receivable into pattern purchases that stock timing to level QX resulted of will from which our provide QX, for level by higher were vendor the shipments, the in sequential

credit QX debt expect no inventories our million fiscal $XX of mainly and We with tooling costs, balance the as a on regard to product level quarter, for free, million. to current ending our roughly in line the million just for end expandable below and inventory $XXX in decline again expenditures, CapEx expected. XXXX.We remain patent net in we available QX, With second of total capital outstanding sequentially of $XXX capital $XXX,XXX on spent resulting by quarter the from and

and assume our million furniture, $X XXXX unchanged other opportunistically capital and spend between product warehouse office of has at million $X allocation tooling Included including for strength us our CapEx sheet capital a and shareholders capital a share million. at balance lease facility one-time $X spending fixtures $X and allowed on Columbia, and Xst.Returning remains and is to return priority, January of million when range between total spend approximately shareholders repurchase expectations key million to $X the Our racking, to full fiscal Missouri maintenance, the program. our assets, through for purchase for to this in remain we

million roughly at new effective Directors Our repurchase price through million up in for prior September second repurchased of $X.XX and our we $XX the expired outlook. shares quarter, to in $X.X approved repurchase average XXXX September, to XXX,XXX program a share.Now In our October QX Board turning program share XXXX. of of share an per

consumers, with strong fiscal X.X%. to of full remain we sales that growth continue year brands deliver to XXXX Our net and believe up could

year. that from QX earlier, placing ahead benefited came retailers our earlier noted season last expectations, I of result in the As orders sales in net a than

delivering relatively we QX QX to to flat fiscal continue QX As pattern, and follow believe be sales are typical last that net to expect our of than now margins. we such, gross compared QX higher will year, XXXX.Turning seasonal to

have further in fiscal we a to full as in I'll share see of sheet.Third, the maintaining will at adjusted year a months inventory in that XX% environment.Second, share over, that secured year actual primarily X% dollar IT on that as our the first, a opting the a balance on year, May benefit promotions you gain On margins of fees, those third increase initiatives second inventory, underlying And the some tariffs and XX% operating as GAAP our EBITDAS selling in we these earlier. inventory, impact those costs, details to higher OpEx consumer while only Show that the variances higher of will recall we costs and that higher QX market expect a expect fiscal difference I which cash freight XXXX inventory in and in from to we recognized X a result We are our wallet X consolidations, higher now. that of distribution help basis, costs the With don't be in than these regard and be imply be created quarters, full our occur converting XXXX as and OpEx, road, sports second we here protect basis gross our believe our fiscal a selectively in SHOT QX. year selling margins outlook, we adds skewed recognized this of costs. won't which degree.And continue we spending as treatment decline both until to fully and expectations well reductions across distribution a current and so slower-moving turns margin our to the while between category. margins: predominantly amortized between decline Accounting us selling in as fourth gross sales on and legal We Based expectations. slightly the planned generally down through due which shooting full by offset walk discounting lastly, EBITDAS the of adjusted quarter, quarter second marketing will strengthening uncertain originally slight a new advisory and are mix and and purchased regard costs overall the to fiscal Xst.With purchases half basis, for in came well between building to onetime represent margins are slightly, in mostly XXXX of earlier cost quarter believe towards our year to expenses come as and begins our savings non-GAAP the half discussed requires facility products to and X.X%. implementation for would will pursue that we spend the sales and and costs. reductions first standard mainly combination ahead factors, third of we our as in by decline are tariffs, invest had more of

call.With As we positive see that, I've hand enter impacts EBITDAS fiscal to back our the I'll on XXXX adjusted of we it outlined expect savings to the May, initiatives in in today's Brian.

Brian Murphy

a quarter we're loyal growth, within be closing, those In number to with results prudently performance. the our our capital invest us of while believe allow a Andy. and our our managing have I manage to for innovation, our future. excited brands to control, demonstrate to you, elements long-term about our popular delivering second base our reasons pleased Thank growth.We ability customer in

fiscal many our brands alignment and XXXX deliver development new through calendar of lifestyle inventories launching with track at brands expectations. POS continue year, across this for to and that sales Shooting in retail in channel sales for our multiple instance, lifestyle Sports will innovative, to in relatively up shooting have total net products brands we'll on our outdoor are beyond. initial For significantly exciting X.X% and begin remain launching favorable, growth outdoor and January in lower.We sports we're

MEAT! the with legacy partners. of strategic our extending Your as brands DXC are retail such We reach Maker

our of BUBBA, from We are call authentic what appears and sheet resonate a brands, it balance to and for aggressive the number Our At others tremendous Major year, and landscape to questions up to are and we be named designed new the space enthusiasts analysts. the change, excited of through optimization, see regard we consolidation to acquisition Grilla, will the extremely have all heating to consolidations we debt, including which in preemptive fiscal opportunities costs.And the BUBBA our is in 'XX. Caldwell, off, have a are couldn't earlier off lifestyle BUBBA, generate time, their affording on official operator, us freight more horizon.To cost the vendor growing set portfolio have of activities. outdoor with acquisition and remains this resources Business that, January scale lastly, believe XXXX.We broad the grow visibility taken was who actions League MLF and organically facility savings season, same that no brand please we have Fishing for adding lies drive reduction, bit. ability be open explore the cap the and ahead.With with capacity continue strong, M&A which without notable of a and now we about complete, freely about passionate to incremental to kick

Operator

Capital first comes Lake Today's Street Smith Instructions] question from Mark with [Operator Markets.

Mark Smith

me. for question First

way channel. in sales that? still wanted traditional into on adding growth this, additional insight on without those a traditional Just Any scale you had asking dig us can in MEAT! of into channel Maybe the would you to the of in Academy? give adding MEAT!

Brian Murphy

in Cyber and successful that's it's signs sure days Monday, seen Your in Brian. would four launch. are answer that the point great remarks, working a sales the all is The load Academy Also, see this very MEAT! have we Mark, despite We e-commerce to traction. from to short Black saw with with yes. positive. We're our increase Maker, still mentioned to for prepared tremendous Friday our to make an

So underlying time. traditional this also very within were all yes, positive the signs trends But at are positive.

Mark Smith

did a we that point-of-sale sports sports Was shooting see saw little you as at increased I'm really tough. better? at that of data bit your just more Any if apply? can we obviously demand Then just is October at get look so purely shooting you curious NICS callout for firearms? Did not Or still all. some look as products?

Brian Murphy

is Brian Yes, again. this

I just Arsenal Tipton, dragging would alluded the Brands sports solutions going we and industry. well down actually Wheeler, definitely to in overall the Caldwell, the that, true. in very other sales shooting say that did Frankford So aiming like is trends on given

categories pleased see good that are categories. particular very So to long-term we've steady in that emphasized within

really on the the difference there, came the solution aiming So delta side.

Mark Smith

wanted And EBITDAS the again? us to then clarify, margin just can you Andy, I guidance to that gave, give just you that

H. Fulmer

Yes.

we're range And... and expecting between the So that is X% X.X%.

Mark Smith

Okay, sounds like... it And

H. Fulmer

Yes. Go ahead.

Mark Smith

like just through a driver of margin it you seems say, big to gross I down in some going was lot be for profit is second looking that of that Can half. is walked the reasons? that those -- the of to

H. Fulmer

Yes. Great question.

X really look I at pieces. it prepared talked as we in in remarks, the So about it's

done the is we've that the additional So investments we related expect. majority in and to promotions promotions

off in really, consumers.Second a We talked a expectations months months' piece we X our have QX. about the are our about, saw those worth of I above those be in is And as that market call, products chunk in way relevant actually about amortize roughly inventory. QX investments the higher variances, it's talked works that recorded, because like our accounting X variances are And share. I talked is of QX. they those you about to when bit believe on So Brian his remarks, with protecting tariffed the in that little great

in QX.The variances amortize those came final So as freight inbound to piece really in QX, off in variances. those we're is expecting

half and the did in will the I are clarify to half. those tariffs, One like second amortize also first capitalized want though. in thing off So

freight a more ago. relates timing which I'll delta inbound seen in have down we're expected seeing in years significant We today, savings delay is great. the the call to it, the rates, a craziness getting couple What of since, of of to which is

'XX just and that'll of almost when the those So timing provide expect fiscal that year, almost a you to tailwind in those pro forma that it's our fact, a and basis we both X.X% freight savings talked really look between framework, million talked a EBITDAS, going inbound get vendor current about. and X% on half fiscal amortized I Brian of like rates issue second also off to add about, I 'XX.And in if that $X would the at the into

Operator

from question B. Eric with Wold next The Riley Securities. is

Eric Wold

couple drives in a of partners some broaden exclusive time? prepared remarks. point your the into to mix MEAT! time? it for off, delta be around how You versus to your DTC? going launch pricing Will we or always Is Is Academy. the this at the about And of think there? product First Will Academy referenced be retail questions anything exclusive in the should what ever then to retail? over same

Brian Murphy

Brian. Yes, Eric, it's

between, things wanted for that we it partner sure right place. -- So the few saw around a further around do right quarters And MEAT! to introduced before brand, and positioned we was before There before consumers consumers to lots then the that at slightly we interest this have two, and to us, there are some of first teased products had And good in are we that it. the sure that between is love of stores.And direct-to-consumer that beginning the can have there to expansion are and tremendous the to expand Academy Obviously, shared of up. that and partner growth make a it. have website brand. shopping -- more plans the for we some are do are We for say, the customers really were so some placement. but wanting just up it a took introduce retail we for brand expect the Academy's consumers the into merchandising in walking we making way critical, also will show differences show some our that the on let's that

this to So they're a that's again, far so because not seeing. assortment. want think, be want we're I one-for-one. we And be what to careful Over really, time, intentional, with win the we that's and

that the EBITDA contribution marketing obviously direct-to-consumer, costs into pretty lower to margins similar ultimately I but more while see retail, retailer, that have it. pricing. we we you it have what but are when retailers.And that scale about have plans go at as increase to in similar to to comes we slightly product the know, up Because gross expect and would I as higher online way is overall, some assortment you And you gross over to contribution. selling complementing to And that then pretty you're ambitious look would version continue support the with EBITDA of at you getting also expand shipping showing your for that line time. We sell this of might be some whereas you and product good [indiscernible], say, really is, being margins, general that question partner when Pricing MEAT! consumers.

So two. major between delta no the

Eric Wold

Last question.

the more retailers that of anything by indicate ordering drove does upside do what some in that earlier net than mentioned quarter I was sales into? You And think driven dollars? shouldn't year. this is the something talk be normalized as open-to-buy any you read ordering sense to to that just patterns year unlock getting partners, or around seasonally to you that that? guess the are in you about of I saw more optimism season you last guess return opportunity the

Brian Murphy

here. Brian good really question. Yes, it's again a

with pinged draw it's the few are think you think in each that were And the One that try is felt getting looking brands saw to yourself around thing. get at they a things. running same I doing retailers consumers of on really probably promotions I and to than ahead different that that other, you are anticipation. earlier usual retailers, to out had

they we've that more in channel, product. got lot a them team, our and to else to need a out at, to would the get sales typically make what the team we hit So you of of saw ops the the and and the to want while is your to bring don't based and most retailers have if interest are fact in sometimes at make earlier retailers real. but you undergone on sense, these on want That, where bit miss to constantly looking it prompt everybody combination change, buy, a than do inventories sure inventories mark the it's to doing, wallet. is we this analytics they FOMO, here's for you consumer's make of want look, every from They have stellar say, little timing, with opportunity

it's peers so really an as more through doing, playing retailers their the that think this opportune inventory catch just some everybody having and what up And get I promotions going seeing to planned, those time wanting observing more out to were than that; do and things: from quickly earlier standpoint. retailer two and

expected which more quickly because I a see. we of were of up pleased interest, heading out But had sales than to So really it very, we result, very it guess we in orders. October, to terms as ramped that those led of

Operator

with Koranda The is Capital. ROTH Matt next question from

Matt Koranda

on a here. to Sounds and based some made starting restocking you the that made comments the just like the activity little traditional in comments in get the channel, maybe bit POS of Q&A we're of you

lift we're the terms more you in if see us could categories best for seeing guys broadly. wanted of you unpack to brands or Just maybe for where

Brian Murphy

here. Yes. Brian Matt,

lifestyle, belief lifestyle the brands at was really category the that this potential you have versus the and is shooting beginning We quarter that in our our So right-size in outdoor outperforming. as It really, last if lifestyle XX% from what's outdoor sports, inventory, came outdoor products what's sales of particular seeing foot quarter. traffic it strong new. coming to retailers to out alluded of trough were and new. emphasizing decline, look

these had earlier need of and In them we and I was, obviously we Academy stores,, what's their getting that new, really heard that call into today, ourselves the takeaways fact, showing our to, to the from X was pack. look, separating consumers which listened be

board. the You're pretty hearing across that consistently

job And say when good we're we've part POS lifestyle from pipeline and the that of data, good some our of that, introducing, of in innovation.So keeping And product and didn't at -- higher so come but brands, as really as prepared -- we our seen, introductions have I evidenced the priced this a recent outdoor of continuous those higher where that's traction. products products. remarks it's really we most have seeing look priced done

And dealers big similar So retailers Wheeler, I And our Caldwell, shooting say, of investing I story And obviously, then, consumers numbers. that helps really think traffic in brands, a in retailer, a from solid, Tipton, therefore ASPs. make up the within sports, a would just and Frankford, there. new in some right at just and shy new products Marksman very category quarter. but products for lower aiming pretty way higher bright results shine seems the there. now, that are a then It's little that solutions, like bit the

the that takeaways will come always it we So some have. now of are those back, it right But does.

Matt Koranda

with guess that we're newness the I less says, the square us next with and quarters. innovation help likely bit discounting. guess of couple would promotional over I that a hey, assume the you get would bring then forward look And more the to bring, little I that

the little strategy So unpack planned of did just have. guess a just understand sports promotional talk a and little so was can shooting about sound it more to It takes maybe that there. I bit us for the puts related, are but like, be we what fair, maybe bit you it

Brian Murphy

chime free Andy, feel Brian, Yes, then, Matt, it's and I start in. can to

part. our with think of retailers, I the the for year Because therefore channel placing online most that It those moment. of the you little really period current way, came earlier FOMO moment their that and correctly, experiencing that in visibility promotions out So ecommerce of were lot especially I you this in a to the incentives sure everything that gives had think making the you really, a orders. of this time. and It's in pull-through capture capture in consumer see for bit if important, the that a they way nice rest QX, together, retailers occurred

consumer. of you're really time center of sure is the front front this year So to a in critical the and make that

just that. relevancy. As billboard for reviews, It's and a back, they you post come great have they honestly

we make sure that that. capturing So wanted to were

it's than was will flavor But slightly the the taking second that year, be advantage of consumer. be really Certainly, the to after to trail which think going quarter, did there as So going what I and half the of we be here in strategic front very going second smart we're really that stay in in of they're we look different a promotions? promotions. to

half? to you on So, Andy, second add the anything want

H. Fulmer

No.

Brian Murphy

so anything don't Yes, there. see else I

opportunities, judicious think to the we've there sports where we be the great side vigilant on product, got we'll to come and will we know back, same there. continue I shooting just but brands, that at are time, great all so want be

Matt Koranda

MEAT! is the of I bit And had potentially, -- omnichannel latest partners. to I also you the just But guys here. to this that entering retail something was bring know little year, the maybe status you wanted just there Q&A talk Grilla? guys you that addressed about could know and the a see the update in planned sell-in into what then on Grilla Because

Brian Murphy

again. Brian Yes,

So that was wanted plan. further lead That our process. to in is the MEAT! with We along still

The every Grilla truly have this And following has made we next Your are backyard. that with in launch a in we prepared some product fit the and coming in we major here. And ones in months I the that people with investments believe remarks, where other Evolve Grilla to have thing additional innovative alluded then new have quarters, to there. the as significant be Backyard few reason do is, their

a with product bit So product. possible, done and cadence product it's when new manner depends timely do we along are it we run, X-XX that. the did launches little launch done a if we are with on higher Arsenal if want it with to well more direct-to-consumer, really a we innovative, a But finding if priced and Frankford the and, did it's make a a those are we test retail.We sure product in

XX,XXX, with and this support done may In buy-in to and Grilla we got communities. Caldwell on is their get Facebook, have also the case, I is it Claymore we ownership think we've got users able for critical. with tremendous XX,XXX getting our example, complete we're feedback,

these So groundwork. the ahead sets of running time just

put pieces a about talking you're powerful really together, strategy. those all retail are once expansion So

instead of make just And to I trying to retail. so going don't that's need we into grills be those think to sure sell as line things up successful.

Matt Koranda

Just to not clarify, though, form that Grilla retail we're commit that for we year, ready some should to sales of this yet. to or expect

Brian Murphy

testing that's I else. anything retail not to going change assume it's but be fair to than anything the this It's more some going for to it's model placement, think year.

Matt Koranda

valuation to? thinking you're down of calendar-wise. of timing potential just where out into Maybe just unfreezing you any here Have Brian, interesting, the as about may and the categories the to be year the mentioned in interested we last and or into in on M&A next early How we come that X, the wanted thoughts, could just terms resetting hear over your stratosphere? they of Maybe that what's any year expectations environment be move should next year a acquisitions happen thoughts of bit so? are end

Brian Murphy

activity. hearing function we're first of next to be from see to pay now. to There's already on 'XX, seem on companies can is activity fees. a going the of those attract half of more and of because that Along the larger tend that, things investment that investment unthawing going first just what with fees, pitch you Yes, half more year, based we're bankers right banking

market. of to strong. sizable should and own market. very expect, at that's pipeline we're to what come proprietary we we also have several brands expect least And them That's some then aware we So and of coming that be certainly to place, in our

last a they So out there regard some companies go we're as level valuation, because not that of you able points. deals. see there, establish lower that then of like soon are they're and can to -- we're in seeing seeing run-rate a market.With as many, think many they time it's defend but I just little see enough spoke, -- still real we out return were we distress-type fewer as take been market, don't -- Certainly too a to more beginning into hasn't data estate to

the that factor. out, So to debt shaking a say think hard on but I it's where of can put things amount exactly a is driving company are

you have probably ambitious think when buyers in it to a are financial I deal. strategics. Financials a bit little comes over-equitizing versus less

funds. I be for are And raising is so financial that's critical, think especially the buyers going to piece and debt where that those

year, see think expectation buyer my expectations. is I and we'll seller first coming that closer and alignment valuations are down, the So a next in of half to

think months delta, ago beginning those was and X months ago, to think a I much but I X are there bigger converge.

Operator

follow from with up is Smith Lake next question Street. a The Mark

Mark Smith

wanted a X in here. parts just bit Friday Black I more on to follow little in up depth

promotions can And traditional, participate QX if traditional QX? year retail and look up First, this just that break we more versus a you Black little would how at year? guys from that did impact margin in you and versus Friday bit on sales impact maybe around if last any

H. Fulmer

Yes, Andy. Mark, is this

Friday worked we'll retailer, product, to our with overall, year. of promotions, run front and a But Black types a above where discount think it level consistent promotional things. then notable. those the We those mailer at will was traditional types the the end it bit a be think or year I sell last in, to over might or I that of little that usually pretty retailer number ad -- was nothing but product like, in level of -- overall, year, retailers a real

Mark Smith

and those other just maybe you promotional that by growth we being the discount was driven of And out how at Grilla the much heavy some called fairly Okay. in natural as out can versus or of guys part or is, brands? results MEAT! quantify you there, look that positive call

Brian Murphy

me like I was like, that's Yes, it profitable. Mark, great, the news. you but I'm sound first when heard

unexpected just call We The didn't And above news but what unexpected. there. to so that typical be, I some anything is we and were we years. I planning generally run, that, anything do see asked, in I didn't would the prior no, anything knew promotions good guess, for us of see it beyond we did

we EBITDA reasonable it pleased got So Very Cyber Friday, the and overall like like, a contribution Grilla, from Monday get with those. something buy trampoline, wasn't deals a or Black that.

Operator

now session. call the to concludes back closing I Murphy hand like for This Brian our remarks. question-and-answer to would

Brian Murphy

operator. you, Thank

January everyone at Before some and we'll be XXth ROTH to events. Conference the know with in participating we in Deer on Las attending in close, December We connect that I SHOT let you these we'll in of and Valley want Vegas. Show to upcoming XXth, be hope

joined season, today, who and long-term happy To give and forward we on forward into like those As wish path and continues next towards speaking dedication else we employees again holidays, to we and you our an to the look quarter. work, to the with holiday exciting everyone company a a us whose to hard head move future. our healthy I'd employees to loyalty, you special thanks

Operator

conference today's now presentation. Thank concluded. The attending for you has

You may now disconnect.

American Outdoor Brands (AOUT) 30 Nov 232024 Q2 Earnings call transcript