American Outdoor Brands, Inc. (AOUT) CEO Brian Murphy on Q3 2022 Results – Earnings Call Transcript

American Outdoor Brands, Inc. (NASDAQ:AOUT) Q3 2022 Earnings Conference Call March 10, 2022 5:00 PM ET

Company Participants

Liz Sharp – VP, IR

Brian Murphy – President and CEO

Andrew Fulmer – CFO

Conference Call Participants

Ryan Meyers – Lake Street Capital Markets

Scott Stember – CL King

Operator

Good day everyone, and welcome to American Outdoor Brands Inc. Third Quarter Fiscal 2022 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. Please go ahead.

Liz Sharp

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, 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.

I have a few important items to note about our comments on today’s call. First, we reference certain non-GAAP financial measures.

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Retail shares continue to acquire heart phase in the inventory sector these days. Even though the good reasons for this interest might be blended, the field remains a notable a person ahead of the calendar year-conclude season. Following all, with customer paying at a seasonal large even with growing client prices, vendors could have far more place to operate. Not to mention, other crucial sectors of the inventory industry this kind of as the tech field also seem to be to be having a breather.

In theory, the reason for this could be the renomination of Jerome Powell as the Federal Reserve chairman. With Powell established to return for his 2nd expression, the Fed will, in concept, be much more possible to stick to its tapering strategies. At the same time, we could also see related tendencies in its curiosity rate hikes over the mid-to-extended phrase as very well. Consequently, with tech shares, among other progress sectors, probable to really feel the brunt of all this, investors are understandably spooked. Meanwhile, as described before, even with inflation and greater costs getting handed to shoppers, merchants continue to keep solid.

This is obvious in organizations these as Burlington (NYSE: BURL) and Target (NYSE: TGT). On a single hand, Burlington posted good final results, topping its pre-pandemic amounts in terms of complete income. In accordance to Burlington CEO Michael O’Sullivan, the financial system shifting in direction of a “more inflationary environment” will probable keep on to appeal to people to the company’s off-selling price offerings. On the other hand, Target observed an earnings for every share of $3.03 on revenue of $25.65 billion final 7 days. Notably, the firm cites potent seasonal sales from Halloween

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