American Outdoor Brands swung to a net loss in the third quarter as sales declined amid a challenging market environment.

The company reported GAAP net loss of $4.1 million for the quarter ended January 31, compared with GAAP net income of $169,000 in the year-ago period. Non-GAAP net income was $1.5 million, down from $2.7 million last year.

Net sales for the period slid 3.3 per cent to $56.6 million, which management attributed to variability in retailer ordering patterns and broader market dynamics.

Gross margin decreased from 44.7 per cent a year ago to 41 per cent amid actions to clear slow-moving inventory, and higher tariff costs.

By category, outdoor lifestyle sales grew 5.4 per cent, driven by strength in the Bog and Meat! Your Maker brands. Shooting Sports sales plunged 15 per cent due to continued softness in aiming solution products, partially offset by growth at the Caldwell brand.

“We are encouraged by our performance so far in fiscal 2026, particularly in light of the ongoing tariff environment, cautious retailer ordering patterns, and broader consumer uncertainty,” commented Andrew Fulmer, the company’s CFO.

For the full year, the company expects net sales to decline 5 per cent and gross margin in the range of 42-43 per cent.

American Outdoor Brands reported a 10.6 per cent increase in net sales in the last fiscal year.