Please ensure Javascript is enabled for purposes of website accessibility

American Outdoor Brands Raises Guidance Again as Sales Nearly Double

By Rich Duprey - Mar 19, 2021 at 8:15AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Participation in shooting sports and outdoor activities is accelerating and may remain elevated.

Sales growth accelerated for American Outdoor Brands (AOUT 7.06%) 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.

Hunter with a rifle in tall grass.

Image source: Getty Images.

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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

American Outdoor Brands, Inc. Stock Quote
American Outdoor Brands, Inc.
AOUT
$11.98 (7.06%) $0.79
Smith & Wesson Brands, Inc. Stock Quote
Smith & Wesson Brands, Inc.
SWBI
$15.12 (1.48%) $0.22

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
332%
 
S&P 500 Returns
118%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.