American Outdoor Brands Inc (NASDAQ:AOUT) stock rose 6.78% (As on June 29, 11:22:59 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 23. Quarterly non-GAAP net income was $793,000, compared with non-GAAP net income of $1.9 million, for the comparable quarter last year. Quarterly gross margin was 45.2%, an increase of 140 basis points, compared with quarterly gross margin of 43.8% for the comparable quarter last year. The e-commerce sales grew 0.7% and traditional channel net sales declined by 4.3%. Quarterly Adjusted EBITDAS was $1.8 million, or 4.3% of net sales, compared with $3.2 million, or 7.0% of net sales, for the comparable quarter last year. On a three-year basis, the company delivered net sales growth of more than 14% over the pre-pandemic levels, reflecting strength in the e-commerce channel, and driven primarily by growth of almost 34% in the outdoor lifestyle category, which consists of products related to hunting, fishing, camping, and rugged outdoor activities.

Moreover, the new products launched in the past two years generated over 25% of the full year net sales, which is consistent with prior years. The Dock & Unlock process fuels that innovation, and the company had unveiled a host of new products across the brand portfolio during the year. Several of those products have won industry awards; many incorporate features that are ‘cross pollinated’ from across the brand lanes; most incorporate proprietary features; and all of them, taken together, advance the strategy to enter new product categories and expand the product lines and distribution channels.

Further, in fiscal 2023, the company completed several strategic objectives, including the implementation of a new ERP system with the successful go-live of Microsoft D365; the establishment of a new analytics platform with the launch of Microsoft Power BI; the consolidation of the facilities in Oregon, Texas, and Michigan into the Missouri facility; and the finalization of a full lease takeover at our Missouri facility slated for January 2024, which will provide increased distribution capacity for long-term organic and inorganic growth.

AOUT in the fourth quarter of FY 23 has reported the adjusted earnings per share of 6 cents, beating the analysts’ estimates for the adjusted loss per share of 13 cents. The company had reported 8 percent fall in the adjusted revenue to $42.2 million in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $39.28 million. The company ended the year with a cash balance of $22.0 million.