American Outdoor Brands, Inc.

Good day, everyone, and welcome to American Outdoor Brands, Inc. First Quarter Fiscal 2026 Financial Results Conference Call. This call is being recorded. At this time, I would like to turn the call over to Liz Sharp, Vice President of Investor Relations, for some information about today's call.

Thank you, and good afternoon. Our comments today may contain predictions, estimates, and other forward-looking statements. Our use of words like anticipate, project, estimate, expect, intend, should, could, indicate, suggest, believe, and other similar expressions is intended to identify those forward-looking statements. Forward-looking statements also include statements regarding our product development, focus, objectives, strategies and vision, our strategic evolution, our market share, and market demand for our products. Market and inventory conditions related to our products and in our industry in general, and growth opportunities and trends. Our forward-looking statements represent our current judgment about the future, and they are subject to various risks and uncertainties. Risk factors and other considerations that could cause our actual results to be materially different are described in our securities filings. You can find those documents as well as a replay of this call on our website at AOB.com. Today's call contains time-sensitive information that is accurate only as of this time, and we assume no obligation to update any forward-looking statements. Our actual results could differ materially from our statements today. A few important items to note about our comments on today's call. First, we referenced certain non-GAAP financial measures. Our non-GAAP results exclude amortization of acquired intangible assets, stock compensation, emerging growth transition costs, non-recurring inventory reserve adjustments, other costs, and income tax adjustments. The reconciliation of GAAP financial measures to non-GAAP financial measures, whether they are discussed on today's call, can be found in our filings as well as today's earnings press release, which are posted on our website. Also, when we reference EPS, we are always referencing fully diluted EPS. Joining us on today's call is Brian Murphy, President and CEO, and Andy Fulmer, CFO. And with that, I will turn the call over to Brian.

Thanks, Liz, and thanks everyone for joining us today. As we look back on the first quarter, I'm very proud of how our teams delivered in a dynamic environment, navigating the evolving tariff landscape, leaning into the agility of our supply chain, and continuing to drive excitement with consumers around our brands and new products. This quarter reaffirmed that innovation for us is more than new products. It's a mindset that enabled us to drive stronger point of sale performance versus peers across several strategic product categories, a result that is supported by feedback from key retail partners and third party data. Net sales were lower in the quarter, but in many respects, this moment feels much like FY23. a period marked by macro uncertainty that I believe ultimately proved that our model works. By staying true to our competitive advantage, repeatable consumer-driven innovation, while controlling what we can control by adapting to a shifting environment, we took share, strengthened our brand equity, and extended our long-term runway for growth. I believe that we'll look back at this current period similarly. a time when our long-term discipline was rewarded with growth. So what does the current dynamic environment look like? It's an environment shaped by evolving tariff impacts, shifting retailer order patterns, and broader macroeconomic uncertainty. Like I said, it's important to remember that we've been here before. We know how to adapt, and we know that innovation is what drives consumer demand, retailer partnerships, and ultimately sustained growth and profitability. That is why we remain confident in our long-term strategy. Diving into consumer pull-through and brand momentum, our brands continue to resonate with consumers, fueling point-of-sale performance across several of our largest traditional retailers. You'll recall that many of these partners accelerated orders late in Q4 to get ahead of tariff-related price changes, ensuring inventory of both our most popular products and exciting new products, like the Caldwell Claycopter and Bubba Smart Fish Scale Lite. We believe that strength in consumer pull-through speaks to the power of our innovation engine and the enduring appeal of our portfolio, especially during a seasonally light period of the year. In fact, new products represented nearly 29% of our net sales during the first quarter. Purchasing activity from our retailers during Q1 reflected replenishment cycles that were periodically turned on and off on a retailer-by-retailer basis as each one sought to optimize pricing, product mix, and cash flows tailored to their specific situation. We are seeing a continuation of this behavior in Q2 and would expect it to continue as long as the tariff situation remains fluid. These ordering patterns created a year-over-year net sales decline in Q1. However, if we adjust for the acceleration of orders by our retailers into Q4, total first quarter net sales would have declined just 5%, a favorable result given the environment. And net sales in our traditional channel would have increased by about 15%. This tells us our strategy is effective and that, coupled with our POS performance, our brands are winning at retail. Turning to net sales in the e-commerce channel for Q1, we experienced lower order flow from a large e-commerce retailer that we believe is adjusting its purchasing patterns to realign with the ongoing tariff impacts. As a result, our e-commerce channel underperformed in the quarter, declining 35.2% year over year. Regarding supply chain agility and margin discipline, Throughout the quarter, we continue to proactively manage our supply chain in the face of changing tariff rates. For certain products, we've already shifted production to countries outside China. For others, China remains the most competitive and reliable option. In all cases, our priority is clear. Preserve product quality, protect margins, and maintain supply continuity, serving near-term adaptability needs while building a sustainable, and resilient long-term solution. At the same time, we remain focused on advancing our long-term growth initiatives. That commitment was on full display with our announcement of an expanded partnership between Bubba, our innovation-driven fishing brand, and Major League Fishing, the world's leading tournament fishing organization. Together, we are introducing MLF's exciting tournament format, ScoreTracker Live, to all anglers for the first time, available exclusively through our Bubba app beginning in spring 2026. ScoreTracker Live invites anglers, tournament organizers, and fans everywhere to experience the thrill of live scoring while promoting more sustainable catch, weigh, release practices. We believe this expanded offering will accelerate our recurring subscription revenue stream extend Bubba's reach with anglers of all skill levels, and set the stage for near-term product introductions that build on the success of our approach of integrating hardware and app technology, first pioneered by our popular smart fish scales. Looking ahead, as we approach the fall season, a key period for hunting, shooting, meat processing, and outdoor cooking, we are excited about opportunities across our portfolio. from BOG and Meet Your Maker to Gorilla. At the same time, our teams are preparing for SHOT Show in January, where we look forward to introducing another wave of innovation that will fuel our brands into fiscal 2027 and beyond. With Q1 under our belt, these first few months of our fiscal year suggest that the near-term environment will continue to reflect shifting market conditions and evolving consumer trends, requiring us to remain agile and adaptable as we navigate quarterly fluctuations. And like FY23, we will continue to lean on a strategy that we believe has proven to be resilient across cycles by continuing to innovate, staying close to our consumers, strengthening our retail partnerships, and executing with discipline. These fundamentals, combined with our strong financial position, are not only helping us manage through today's uncertainty, but also positioning us to emerge from this period as an even stronger company. And with that, I'll turn it over to Andy to walk through the financial results.