American Outdoor Brands Shares Sink after Q3 Report

Shares of gun maker American Outdoor Brands saw its shares collapse on Thursday after reporting its third quarter report.

The company reported a huge year-over-year sales decline and offered a disappointing outlook going forward. The company said sales fell 32.6% YOY in the fiscal third quarter. Adjusted earnings for the current quarter are expected to be in the range of 9 to 11 cents and revenue in the range of $162 million and $166 million.

The parent company of Smith & Wesson responded to the Parkland, Florida shooting in its earnings call with CEO James Debney remarking, “We share the nation’s grief over this incomprehensible and senseless loss of life and we share the desire to make our community safer.”

“Through our membership and work with the National Shooting Sports Foundation, we will continue to support the development of effective solutions that accomplish that objective, while protecting the rights of the law-abiding firearm owner.”

In response to Dick’s Sporting Good’s announcing that it would not sell assault-style rifles any longer, Debny said, “The percentage of American Brands’ assault-style rifle sales at Dick’s “is extremely small.

It’s actually one-tenth of one percentage point of our total sales. So there isn’t really any impact and of course anything like that is obviously built into our guidance going forward.”

Shares of the stock fell as much as 26% in after-hours trading.

Disclaimer: We have no position American Outdoor Brands Corp. (NASDAQ: AOBC) and have not been compensated for this article.