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American Outdoor (AOUT) Q4 Earnings Lag Estimates, Net Sales Top
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American Outdoor Brands, Inc. (AOUT - Free Report) reported mixed fourth-quarter fiscal 2024 (ended Apr 30, 2024) results. It reported break-even earnings, which missed the Zacks Consensus Estimate, while net sales topped the same. The top line grew year over year, but the bottom line declined.
The quarterly results reflect growth in its outdoor lifestyle and shooting sports categories on the back of new product launches across its several brands including BUBBA, Caldwell, Grilla, and Hooyman. The footprint expansion in Canada also bodes well for the company, allowing it to offer outdoor brands to Canadian consumers. However, the bottom line was negatively impacted by the amortization of tariff and freight costs stemming from higher inventory purchases, which occurred in the first half of fiscal 2024, higher promotional product discounts, and an immaterial adjustment to a tariff drawback claim submitted in fiscal 2022.
Nonetheless, given AOUT’s focus on growing its business, further growth investments, and disciplined capital management, it is well positioned to deliver growth in net sales and profitability in fiscal 2025.
Q4 Earnings & Net Sales
American Outdoor reported adjusted break-even earnings per share (EPS), which missed the Zacks Consensus Estimate of 1 cent by 100%. The company reported an adjusted EPS of 6 cents in the year-ago period.
The quarterly net sales of $46.3 million topped the consensus estimate of $43 million by 7.2%. The metric rose 9.7% year over year from $42.2 million. The top line was driven by growth in traditional channel net sales of 26.3%, partially offset by a decline in e-commerce net sales of 9.6%.
Operating Highlights
Total operating expenses were $24.9 million, up 7.8% year over year. The gross margin was 41.9%, down 330 basis points (bps) year over year.
Adjusted EBITDAS was $1 million compared with $1.8 million in the year-ago quarter. Adjusted EBITDAS margin contracted 210 bps to 2.2% from the prior-year quarter.
Fiscal 2024 Highlights
In fiscal 2024, American Outdoor’s net sales increased 5.2% year over year to $201.1 million. Growth strength in traditional channel net sales of 12.3% was partially offset by a decrease in e-commerce channel net sales of 3.3%.
The company reported an adjusted EPS of 32 cents, down from 48 cents reported in fiscal 2023.
Total operating expenses were $100.9 million, marginally up from $100.8 million reported a year ago. The gross margin was 44%, down 210 bps year over year.
Adjusted EBITDAS margin contracted 180 bps to 4.9% from the prior year.
Balance Sheet
As of Apr 30, American Outdoor had cash and cash equivalents of $29.7 million, up from $22 million at fiscal 2023-end.
Total current liabilities amounted to $29.4 million at the end of the fiscal fourth quarter, up from $23 million reported at the end of Apr 30, 2023.
Fiscal 2025 Outlook
American Outdoor expects consolidated net sales to increase more than 2.5% year over year.
The adjusted EBITDAS margin is expected between 5.5% and 6%. This is compared with the reported value of 4.9% in fiscal 2024.
Culp, Inc. (CULP - Free Report) reported mixed results for fourth-quarter fiscal 2024 (ended Apr 28, 2024). Its adjusted loss was narrower than the Zacks Consensus Estimate while the net sales marginally missed the same. On a year-over-year basis, net sales declined and the adjusted loss widened.
The quarterly results reflect softness in industry demand for the company’s reportable businesses due to ongoing macroeconomic headwinds and the timing of orders, due to many larger customers experiencing prolonged conditions beginning in January. Nonetheless, its initiatives to bring down manufacturing costs and execute operational excellence aided the bottom line to some extent. Culp intends to work on its restructuring plan as it believes this will enable it to grow more efficiently and profitably, with a lower level of fixed costs.
MillerKnoll, Inc. (MLKN - Free Report) reported mixed fiscal fourth-quarter (ended Jun 1, 2024) results, with earnings surpassing Zacks Consensus Estimate and net sales missing the same. On a year-over-year basis, the top line declined while the bottom line grew.
The quarter’s results reflect the company’s ability to leverage the advantage and scale of its portfolio of brands, diversified business channels and global operations to drive substantial margin expansion while protecting strategic investments for growth. However, soft contributions from MLKN’s Americas Contract and Global Retail segments marred the top-line growth, which was partially offset by notable contributions from its International Contract and Specialty segment.
Carnival Corporation & plc (CCL - Free Report) reported impressive second-quarter fiscal 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
The upside was primarily backed by sustained demand strength and increased booking volumes. The company reported strong booking momentum for 2025, with record volumes surpassing 2024 levels in both price and occupancy. It reported strength in pricing for the North America, Australia and Europe segments for the third and fourth quarters of 2024 on a year-over-year basis. Management expects net yields to exceed 10% and drive double-digit returns on invested capital.
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American Outdoor (AOUT) Q4 Earnings Lag Estimates, Net Sales Top
American Outdoor Brands, Inc. (AOUT - Free Report) reported mixed fourth-quarter fiscal 2024 (ended Apr 30, 2024) results. It reported break-even earnings, which missed the Zacks Consensus Estimate, while net sales topped the same. The top line grew year over year, but the bottom line declined.
The quarterly results reflect growth in its outdoor lifestyle and shooting sports categories on the back of new product launches across its several brands including BUBBA, Caldwell, Grilla, and Hooyman. The footprint expansion in Canada also bodes well for the company, allowing it to offer outdoor brands to Canadian consumers. However, the bottom line was negatively impacted by the amortization of tariff and freight costs stemming from higher inventory purchases, which occurred in the first half of fiscal 2024, higher promotional product discounts, and an immaterial adjustment to a tariff drawback claim submitted in fiscal 2022.
Nonetheless, given AOUT’s focus on growing its business, further growth investments, and disciplined capital management, it is well positioned to deliver growth in net sales and profitability in fiscal 2025.
Q4 Earnings & Net Sales
American Outdoor reported adjusted break-even earnings per share (EPS), which missed the Zacks Consensus Estimate of 1 cent by 100%. The company reported an adjusted EPS of 6 cents in the year-ago period.
The quarterly net sales of $46.3 million topped the consensus estimate of $43 million by 7.2%. The metric rose 9.7% year over year from $42.2 million. The top line was driven by growth in traditional channel net sales of 26.3%, partially offset by a decline in e-commerce net sales of 9.6%.
Operating Highlights
Total operating expenses were $24.9 million, up 7.8% year over year. The gross margin was 41.9%, down 330 basis points (bps) year over year.
Adjusted EBITDAS was $1 million compared with $1.8 million in the year-ago quarter. Adjusted EBITDAS margin contracted 210 bps to 2.2% from the prior-year quarter.
Fiscal 2024 Highlights
In fiscal 2024, American Outdoor’s net sales increased 5.2% year over year to $201.1 million. Growth strength in traditional channel net sales of 12.3% was partially offset by a decrease in e-commerce channel net sales of 3.3%.
The company reported an adjusted EPS of 32 cents, down from 48 cents reported in fiscal 2023.
Total operating expenses were $100.9 million, marginally up from $100.8 million reported a year ago. The gross margin was 44%, down 210 bps year over year.
Adjusted EBITDAS margin contracted 180 bps to 4.9% from the prior year.
Balance Sheet
As of Apr 30, American Outdoor had cash and cash equivalents of $29.7 million, up from $22 million at fiscal 2023-end.
Total current liabilities amounted to $29.4 million at the end of the fiscal fourth quarter, up from $23 million reported at the end of Apr 30, 2023.
Fiscal 2025 Outlook
American Outdoor expects consolidated net sales to increase more than 2.5% year over year.
The adjusted EBITDAS margin is expected between 5.5% and 6%. This is compared with the reported value of 4.9% in fiscal 2024.
Zacks Rank & Recent Consumer Discretionary Releases
American Outdoor currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Culp, Inc. (CULP - Free Report) reported mixed results for fourth-quarter fiscal 2024 (ended Apr 28, 2024). Its adjusted loss was narrower than the Zacks Consensus Estimate while the net sales marginally missed the same. On a year-over-year basis, net sales declined and the adjusted loss widened.
The quarterly results reflect softness in industry demand for the company’s reportable businesses due to ongoing macroeconomic headwinds and the timing of orders, due to many larger customers experiencing prolonged conditions beginning in January. Nonetheless, its initiatives to bring down manufacturing costs and execute operational excellence aided the bottom line to some extent. Culp intends to work on its restructuring plan as it believes this will enable it to grow more efficiently and profitably, with a lower level of fixed costs.
MillerKnoll, Inc. (MLKN - Free Report) reported mixed fiscal fourth-quarter (ended Jun 1, 2024) results, with earnings surpassing Zacks Consensus Estimate and net sales missing the same. On a year-over-year basis, the top line declined while the bottom line grew.
The quarter’s results reflect the company’s ability to leverage the advantage and scale of its portfolio of brands, diversified business channels and global operations to drive substantial margin expansion while protecting strategic investments for growth. However, soft contributions from MLKN’s Americas Contract and Global Retail segments marred the top-line growth, which was partially offset by notable contributions from its International Contract and Specialty segment.
Carnival Corporation & plc (CCL - Free Report) reported impressive second-quarter fiscal 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
The upside was primarily backed by sustained demand strength and increased booking volumes. The company reported strong booking momentum for 2025, with record volumes surpassing 2024 levels in both price and occupancy. It reported strength in pricing for the North America, Australia and Europe segments for the third and fourth quarters of 2024 on a year-over-year basis. Management expects net yields to exceed 10% and drive double-digit returns on invested capital.