Sales growth accelerated for American Outdoor Brands (AOUT -0.72%) in its fiscal third quarter, the company reported Wednesday, as revenue nearly doubled to $82.6 million generating a sixfold increase in adjusted profits to $0.82 per share.
The gains were seen across nearly every one of the 20 brands owned by American Outdoor as shooting sports and participation in outdoor activities grew unabated, resulting in the company raising its guidance for the full fiscal year once again.
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Spun off from Smith & Wesson Brands less than a year ago, American Outdoor has capitalized on interest in outdoor adventure spurred by the COVID-19 pandemic. CEO Mark Smith said the outbreak's impact on the industry was "truly profound and we believe has resulted in a higher foundational level of consumer participation."
Sales of American Outdoor gear and accessories were up 60% over the first two quarters of fiscal 2021, but the 91% gain in the third quarter reflects accelerating growth, in part helped along by the 8 million new entrants into shooting sports.
Data from the National Shooting Sports Foundation shows 40% of the record 21 million people who bought a firearm last year were new to the sport. Hunting licenses were also up 7.5% year over year; 3 million more fishing licenses were sold in 2020 than the year before, a 14% increase; and camping participation jumped 28% from 2019, with 19% of millennials camping for the first time ever.
Smith says that benefited virtually every American Outdoors brand, allowing it to raise full-year revenue guidance to a range of $268 million to $272 million, a 60% to 62% increase over last year and 14% more than its previous outlook.
Smith also said because "the floor has been raised for outdoor participation," the enthusiasm could extend well beyond the end of the pandemic.
