American Outdoor Brands has booked higher earnings for the first quarter despite a decrease in sales.

The company’s net sales for the quarter ended July 31 dropped 4.1 per cent to $41.6 million. 

President and CEO Brian Murphy said the sales decline, driven by a combination of order timing and recent trends in certain consumer markets, came in as expected.

Meanwhile, GAAP net loss narrowed from $4.1 million in the prior-year period to $2.4 million. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was $2 million, up by more than 76 per cent from last year.

Murphy said the improvements reflected a consumer preference for products from the company’s outdoor lifestyle and shooting sports brands.

“New product innovation and expanded distribution opportunities are core to our long-term growth strategy, and both played a key role in our first quarter results,” he added.

The company’s balance sheet remained strong at the end of the quarter, with $23.5 million in cash and no debt, according to CFO Andrew Fulmer.

Fulmer expects potential headwinds in the shooting sports category in the near-term but anticipates growth in the outdoor lifestyle segment thanks to channel expansion and a new product pipeline.

“Therefore, we continue to believe that we remain well positioned to deliver growth in both net sales and profitability in fiscal 2025,” he concluded.

American Outdoor Brands’ portfolio includes Bog, Caldwell, Grilla Grills, Imperial, LaserLyte, Schrade and Wheeler, among others.