American Outdoor Brands (AOUT) 10 Sep 212022 Q1 Earnings call transcript

Thank you for standing by, and welcome to the American Outdoor Brands First Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] As a reminder, today's program may be recorded. I would now like to introduce your host for today's program, Elizabeth Sharp, Vice President, Investor Relations. ahead. go Please

good and Thank afternoon. you,

Our comments forward-looking estimates other contain may predictions, statements. and today

of project, is Our should, like words use anticipate, believe those statements. other identify indicate, estimate, and similar to expressions intended forward-looking suggest, intend, expect,

growth products our in market Forward-looking development, and strategies related and opportunities evolution; market inventory focus, strategic general; demand market our product share statements conditions our statements and vision; and for objectives, industry include our also and in regarding our and our trends. to products;

Our represent and current uncertainties. about they described considerations actual judgment are and are our and different our that in factors forward-looking risks results securities our statements materially the to could cause subject future, to Risk be other various filings.

well on this as no call we replay You obligation only aob.com. is Today's and update those as our statements. time-sensitive at of any can call information that as assume to contains accurate documents of website time, a this find forward-looking

our have differ our call. could results to important comments on today. about a statements materially actual note items few today's Our from I

certain financial measures. we reference First, non-GAAP

Also, as website. not they our EPS. today's as well earnings always filings we be can exclude of amortization reconciliations posted referencing GAAP results and implementation, press measures financial we our on are tax stock to income intangible to party acquired COVID-XX or whether The expenses, non-GAAP which Our diluted in are discussed technology compensation, transition call related reference related on effect financial non-GAAP the those found interest assets, fully release, are EPS, adjustments. all costs, today's of when measures of

CFO. with to and turn I today's CEO; that, on call Murphy, the us is call and Andy President Fulmer, And Joining over Brian. will Brian

profitability, new make help I year. and thanks, and joining the and for that out of the the to building brands delivered our with Liz, that reflect consumers Thanks, moments lifestyle that strong authentic net dedication We first start sales to results growth our matter. am extremely quarter fiscal us. pleased most everyone,

of firearm an XX% over shooting hunting sports, fishing, and first participation mention began home meat camping, results alignment fiscal and Our a base XXXX. with license over XX% demonstrate campers consumer have new owners, our quarter QX management, fiscal benefited into our protection continues believe innovation consumers net Not XXXX outdoor such in ability brands lifestyles new The drive Dock expanded our level markets organic fiscal of grew strong & the of land processing, QX to fishing consumer than of and our holders. reach of more new as well to all personal security. of with process the sales as as trends adjacent Unlock us and and provide and protection, personal from and last We we popular year higher in fuel that growth. millions with containing our to markets increased totally serve,

our Adventurer, the XX same four delivered period a a and our XXXX. fiscal type. brands organized growth In of growth fiscal quarter, same first particular As the of brands into the distinct consumer focused our XX in brands Defender, lines; reminder, on and marksman, over Harvester, period brand XX XX each delivered over in are XXXX

larger activity as addressable us of the serve will believe multiple to quarter brand this diversity top expand came portfolio into consumer the to ability the of brand demonstrating across Our as trends. driven we our our selling products continue We transcend diversity markets markets. have each our well near-term four lines to from well as secular diversity

process. Dock new products steady a driven by ability growth and Unlock our reflects stream Our to innovative our consumers deliver of

wide range in our connect social Our and safely media attending consumers. out the time shows new unveiling physical to and and exciting traveling over first QX busy in with of for a products campaigns sales advertising teams marketing and ramped a were rolling very up year,

attended we industry's our its for where included new for quarter fishing Water cutlery high-quality line brand, fishing first to expanded known lifestyle the and storage anglers. of equipment ICAST, from premier packs a the bags. During These products tradeshow, BUBBA, apparel wide we variety and premium designed and unveiled Plate kitchen

meet at series While Tools of hardcore BUBBA the category the Best industry-leading the angler by cordless best designed Pliers a delivering also electric new efficiency. power for Hand and and proudly fillet show Pro cutting unparalleled technology our we in received for award knife, Cutlery, to performance for demands

$XXX we BUBBA at red announced Lastly ICAST will we the most to February. market blanks and featuring components [indiscernible] of entirely unveiled perhaps this our for coming rods, reels rods iconic into BUBBA's rod retail which with and anticipate in-house entry exciting designed million the available consumers be and all, first fishing saltwater

and the rods just our result to innovation Our of is direct and Dock provide new entry into strategy entry into fishing markets. drive one and Unlock example employing

busy quarter in well. brands were Our the other as

Old a Our historic premium brand for quality carry brand known its everyday knives. is Timer

products first-ever where During after we for exciting and This which we just brand the we fishermen volt attended show, Day freshwater electric a brand. fillet Bubba of UST, some survival outdoor the the under delivers trusted generations. outdoor expansion QX, Old retailer the brand's close time women can and the unveiled for gear camping from and new be versions. knifes, And in XXX purchased our QX, to benefits award-winning of they knifes fillet launched our Timer Father's of brand in lithium-ion

double and made our sampling. featuring blankets New wide sleeping X personal friendly mats was This UST width our a just products X of and and eco materials design. double UST color expansion and of are included mats unique Fillmatic our at an Fillmatic popular the

launching including pipeline product and from of our Your the new Trace, number Our MEAT! a have robust and Maker Hooyman. several remains few next of months brands, we Crimson new over products

some take Some our new will expand will offerings completely categories. into and us

to our to believe online launch their have store. touches COVID support to look forward or plans environment, exciting on I our with the to sharing our to approach these on you and and Our wherever our new consumers products prior are In store primarily was channel in-store in strategy options. hand the finishing working QX as dynamic well, quarter reopening. of expand We in inventory teams business delivered size shop where ensure ago. their next traditional first and to enhance current alternate of the years by successes place we and part Net on positively when hard in are putting results. call. investments of This retail off. decide whether important consumers our sales important customers to our brands between impacts believe the is physical the online particularly them, first ability is strategy for driven An recent year the over XX% new over and two shopping strength are our channel the our impacted team the quarter in XX% grew We paying source and store our re-openings international our

X% Our sales XXX%. international QX a sales of year. of from X% year net nearly net remarkable On this QX to net growth two-year sales last sales international of grew delivered basis,

market year. declined versus anomaly the those ago of e-com we brands and QX aggressively potential have that occurred As our many in believe opportunities. continue the explore said the channel growth before, largely an we quarter, prior year to international of in holds into the tremendous we Sales for our result

they replenishment inventory a choosing essential QX one placed largest our during the deemed that major of who included recall a last items hadn’t orders online You'll of for preceding purchase of only for strong in to Instead, month year time. the retailer, customers, that full period.

replenish quickly comparison anomaly So e-com two-year which current removed results. long important of of reflects in ability our over believe and that made fiscal over retailer's for and we that last more quarter, numbers the our ago websites demonstrating first included prior We platform, the drive growth of growth direct-to-consumer in in XXXX. e-com for results exceeded our delivering reflected continues XX% It's to growth expectations that a solid that e-com in QX the note also comparison to our our is quarter year investment inventory. our is the the our which our year period accurate to

quarters. and business year, an unique and and that under ahead. it I unprecedented place, consumer volume products, turning our port take avoid freight risk. variety highest chain continuing ensuring navigate to Now costs team nearly I'll first That about in again from a build levels prepare in for past to incurred invested continue to that we a increased over on get further is we freight employed look and in inventory are chain logistics, needed. did to to support -- to Andy. over norm. With of strong a initiative but alternatives the of environment, lie and experienced We excited working which to as our mitigate We we belts, in products helped opportunities Asia our our few supply for we invest that, referenced, this work sharing impossible strategy to will in teams outdoor as launches we our brands issues. seasonality the effort effectively here past progress QX Unlock in we've the product participation With an been the our quarter congestion the forward up supply industry niche has of constraints in turn great Dock appropriately our job that's us further Their QX inventories,

Brian. and happy results EBITDAS. our in to I'm adjusted first sales Thanks share which from growth quarter the net showed

driven long-term last our market of for an outdoor This quarter, to fiscal and our This sales year the with support portfolio. for in quarter our the beyond represents year. over the outlook prior expectations. for million brands by fiscal combined XX% growth consumer continued the were $XX.X XXXX. for of first balance over with and higher increase products profit preference XX% million to performance demand the increase and the compared 'XX Net combined XX $XX.X QX was Our across of the in

performance margins, QX freight and gross by by point year. lower gross efficiencies, and offset manufacturing adjustments increase customer to driven excess XX were prior the basis favorable XX.X%, was increased improved and spending, inventory costs. mix This Turning margins over obsolete a

In continued fiscal higher promotions absence margins. the first addition, in the 'XX throughout experienced of fiscal of gross helping 'XX, we drive quarter

to in levels we 'XX promotional normal into expect is guidance. incorporated our that to ahead, return expectation more fiscal Looking and

employees the compared the and sequential over G&A in $XX.X new and costs by were $XX.X expenses fiscal from our from operating Non-GAAP to increases to for increase distribution operating in reduction a higher growth intangible amortization. course our driven were of quarter in see stock in the half of out recall to clear hired and QX our reflected support $XX.X by and 'XX million fiscal in the second QX slow-moving to no compensation the 'XX 'XX expenses asset gross completed that QX in in offset in you'll million of you intangible to QX was nonrecurring $XX.X little for of was will they We million last QX standalone increase compared gross exclude last EPS largely $X.XX some operating QX. year. compensation, sales, non-GAAP impact $X.XX compared year. year $X.XX in margin QX as amortization, selling and worked to primarily increase non-GAAP last occur. This million last was inventory year. expenses and margin. as expenses margin EPS that we at for to with fiscal $X.XX certain GAAP Lastly, GAAP stock costs, compared variable effort net

the a Columbia million shares. of consistent our our expectations. lease for to adjusted $XX.X $X.X figures the diluted million note, of a year. is a of with was Adjusted compares prior Please spinoff, based finance prior facility whereas margin $X.X an XX.X% the our XX.X% quarter to 'XX fully operating now million XXXX and was of it on treated are as as was treated fiscal share Our of lease. for at This August approximately the or EBITDAS margin EBITDAS count lease,

roughly Excluding year been adjusted this flat have last change, margin year-over-year. XX.X% EBITDAS would or

plan able cash in invest of shortages. of This to fiscal risks our to the from congestion no important and of launches strategically in to our investment business in million supply 'XX mitigate new of port 'XX. Turning our fiscal at the with as our borrowings inventory considering inventory in in container an likely QX. of the toward we a flow, typical $XX.X fiscal product cash protect We're and to chain numerous these and volume high to million line support foresee along the seasonal is balance this in $XX.X very of $XX.X our on quarter QX that pleased of continue compared in 'XX. high discussed to in continuation end we cash were build we products ended last challenges with build. Accordingly, with up volume Recall result to the building will credit, sheet work designed quarter, products inventory and by million we

of full fiscal $X.X for our million line expectations Our QX $X in and with million. capital total spending CapEx and still for patent the we in expect costs year $X.X million and expenditures between of was

Now a ERP brief and IT on our update build infrastructure out.

year and that on of us spin-off XXXX. are IT former infrastructure that implementations provides by included we ERP IT report recall own time an up budget. our and two with parent You'll platform our our years company last our support that to both August with while stand independent I'm happy on agreement projects

expect fiscal we 'XX about of CapEx project about cost 'XX. to As $X operating the expenses $X.X over fiscal of and the million million of In about be a we 'XX course one-time and million. of $X.X reminder, this expect total

$X.X expect new existing changeover also in during 'XX operate in parallel both expenses system record our million the of and as fiscal duplicative to we period. We platforms our

We no costs will when $XX $XX adjusted ended in with debt the EBITDAS. quarter the bank $X.X our credit. available G&A additional expenses of outstanding under and million treat and provides certain implementation technology our of conditions. operating facility full both capacity We $X.X non-GAAP and calculating availability million the as the line million an This on million

capacity Our of line balance XX. of combined us million our available cash as $XXX over of with July with capital credit provided

plugged seek Dock positions out addressable have that Unlock that brands for targets and organic and continue operate growth markets, us the Our to have process. from large with ability acquisition Brian supplement strong I being our for sheet to into can opportunities. future balance and growth in our well runway benefit

as to identifying to match we our and to targets of disciplined While opportunities those we continue forward we market, a opportunities we approach assess see large remain our coming criteria. look in that number

expect the that strong 'XX the for fiscal guidance. $XXX consumer sheet well our sales balance turning estimate our positions to be with combined Now for are we to fiscal year will represent of the in and nearly our $X.XX. range us GAAP million, full-year our growth X% Today growth. net of of fiscal EPS of which our would in at $X.XX we and the range results. we guidance, of midpoint growth brands believe $XXX for range, prior to 'XX in $X XX% We range preference roughly With in the over future net the sales that EPS over $X.XX 'XX reaffirming that to non-GAAP

of the between expect EBITDAS also year. for We XX% and full adjusted XX%

Now just few highest net reflect delivering net QX QX business sales Historically on with highest quarterly the in details the second seasonality sales. the typically our net and a amounts additional outlook. our that sales,

was almost sales However, by in than fiscal 'XX QX net QX X%. higher

guidance We the activity consideration higher an promotional market before, expected in our more in expect general sales our slightly fiscal resumption follow mentioned gross takes also 'XX same margin, to see as of sales the net net that normalized with than during remainder fiscal With of regard year. to QX QX. I path into

before, invest in opportunities fiscal 'XX we eliminated pandemic in discussed connect trade including customers. at and levels business more with marketing and we've than we in normalized plan travel restrictions valuable As our those did sales to fiscal 'XX related to when shows initiatives

virtually QX expect expenses increased and and to increase conclusion, our initiatives, sales to and made SHOT investments XXXX. in Accordingly, QX advertising international including to U.S. of levels from due trade January continue are QX those throughout 'XX. all shows, Show we expect dollars. brand fiscal We operating in In travel,

will about million effective XX.X the that open diluted With share please XX% our count be our questions tax operator, be approximately and expect shares. call analysts. 'XX will our fully We from for rate fiscal

Instructions] Our from Certainly. [Operator comes first of line John Kernan Cowen. question from the

please? question Your

rods the Yes, like saltwater BUBBA. entry extension on nice excellent. a terms in year, fishing natural QX Thanks a an compare line on for taking into my congrats on from for difficult relative the questions. Congrats results last and top obviously obviously [indiscernible]

you. Thank

maybe top in promotions talk rest a channels categories for any maybe e-commerce and traditional last promotional for you So you normalized environment embedded now? in a both line year, you're -- comparisons can seeing specific industry, any pick are bit the that’s guidance the difficult guidance very from talked about the where there the up Obviously to and embedded year? more

Yes. this Hey John is Brian.

looking So, if what I math tell at would is, you the for two-year QX you how really implied QX we're through do the that's period over it.

on are how -- very opening that remarkable. still similar time on two-year of growth for other pick that with is of implies our You based just remarks up something period companies over a nearly can and which the doing we lot XX% period probably

seeing of is that is of traditional. yes too e-commerce international. about We’re A mix kind big part

international also then at dramatically, and said compared So like the we is seen QX remarks up distribution. pretty if opening you our tier look in we've to increased

mix that's that in been up kind last coming seeing also that a with flux. place Delta of retailer of online rising or of this a our year there. we're that, been then variant been, Right? also a So of bit has quarter mostly we prioritizing We how bit little e-com bulked PPE. reprioritizing 'XX. QX out of international retailer classify that plus traditional of last of little Obviously take an some a And online has FY has had

thrive of be the it's incredibly direct-to-consumer that, kind find do our to business exceeding the to us. is expects some at of quarter-to-quarter. it's what be expectations, and the consumer a but mix goal well going So, our but to our day continues a of of to offsetting things, end

ticking up, the consumer incremental are supply from the Understood. the normalize we and companies. of Tell 'XX we’re the year from Then different supply maybe how for this and margin. is headwind facing to you remainder enter Andy, Obviously, think what gross chain going is hearing just exit as all costs us chain it on ’XX?

John. that's great Yes, question a

experiencing we're cost. freight we increased As talked about, definitely

dedicated. we internal are numerous -- need with products. to, Obviously looking customers again at be freight maximize on but We an meet trying when not With what product than the there. sure to, when costs, promotions, airfreight out look on week we're back profitability. good talked need profitability before ordinary the 'XX, wouldn't the in team have of done maximize customers to things. about They options turns you it to really I'm really make we've we would types getting different We times a when during may to our at past really those promotions, go of seasons, what out we respect the break promotions what to you specific sure certain anything the holiday certain fiscal

maybe maybe margin more so on SG&A. Okay, bit detail little a just adjusted get to the gross

mention there as adjusted any us we prepared did of QX always will I QX, in go is SG&A the You into seasonally it provide rise margin? you Can the gross QX, which flow does. guess, remarks couple gross tough to we the coming comparisons pretty pressure should quarters? to quarters? that year color some in Is going you more over into margin expect year in 'XX there were the going where of next

Yes, question. another great

kind So, be XX%. than in XX%. when and XX% year comp would QX, QX was of QX you then lower will almost expect was the back I look last at XX% or QX that year-over-year

and bit and you probably those And trade little OpEx little then off could QX a bit a I in rise expect said, things those near we model types because in of of QX like level do shows, you somewhere think QX. that. to the

Thank and in great. the you. to Well, rest the the what right forward on progress seeing of store. year All has congrats look

John. thanks right, All

Thanks John.

Thank you.

B. Wold next Our Securities. of the from line Eric comes question from Riley

question Your please?

Thank you. guys. Good afternoon,

is disappointed? market that of first and guess would for one to to the market for I in the what of regional questions. equipment enter five three decision in share want expectation versus next you on entry where couple the your that be million terms reels, into to kind the see fishing over rods years So, $XXX place, your market

this Brian. Eric, is Yes

possible as want much much As take as we market. to

I the about our that follow to that rod the had it about FK’s, something We felt -- the can to is rods, on be to kind wanted developed out consumer gas we Did just since nuts slide came for rod we that niche blanks actually business and talked out for next actually with We in-house. we've to worked we this consumer. the progression. he the of all a had in but create we on was disruptive there grip had remembers, the we had Andy time, if it. potential step too logical the a it on that the norm acquired to came market the right the and going So, of that list so way, took we expansion business,

years but I now can So, positioned we're as ago, market. we as a it big us had versus well this think we be is for right if done three

we that very product the a market. think I others looking distinctive versus have in

rod. I think recognize people automatically handled that red

it you optimistic we're far So we it, of give this enter how comes to very I but big plans. to a disrupt can some take. share wouldn't when after, we got we've like we're if unless we too reaching going be market what so a I'd much plan market percentage

past chain. expectation own in of move activities XX the kind Makes sense. price the from talk kind more then these maybe be early that talked within Can your to you on quite you kind become in calls partners as getting over moving and you of, terms happening seeing up about on avid e-commerce an your of it, stick what some with months categories? you of kind XX of in sites for past of gains up retail may your participants share And larger, about ASPs evidence the points and know

again. Brian I Yes. so Yes, this to speak can is that,

we seeing products and then are that's think great. up part higher part are of items products, in least which we at we as I year, moving too is some a higher our higher that ASP we're are that seeing of part so business Unlock, the is but of which competitors were these inventory. of obviously plan that the spot into been we our also and growth ASP some as last longer-term our plan in ASP struggling absolutely And So, direct-to-consumer Dock on were of at good introducing with taking consumer our

We and our to inventory. and products management have, pipeline break the Well, about of have is analytics this more like Andy inventory from customers primarily our with priced feedback that brick talked team some our lower and mortar customers the and we've price price is, were weren’t some we share to some to so point shelves lower on with products been some retain. just of able higher take able that products point

So, I think one more when months into there's rewind comes different. our walking When are store have they a you products also look just it it little might they if that bit we and options. of share XX customer’s ago to see versus

that we So numbers. customers. are in our it seeing hearing our We're from anecdotally

it you -- points it. we there, data get a are to So few know you but seeing

versus may be if can possibly you now sense not category are you to differences level two are now margins then and demand make able is do here final makes how get area, overseas two-year international to you you're the being given Talk from U.S. demand seeing stack. it about that there we me. the just markets? between question meaningful the in there, over little to decision there products bit? Got obviously allocate here, delaying efficiently high over a And can better On a in able our demand of growth that are the here big similar just to product and that

great again. question. Brian yes Sure, It’s

goal to really things going our even we four additional on each ramp you're it's sell going up internationally stuff, through our and here different likely. that sure Distribution, electric it with overseas most boots BUBBA began that knife, whether Right? different So, team, voltage country was adequate requirements configuration years have to ago have comes a when challenges. you to a has or we three be some distributors, fillet strategy the resources. ground like Working comes to make also international

So those plans place in several for years. have been

over was and last really wasn’t Did the domestic. to able was let's -- question? expected was international we're first hey we So versus motion allocate the saw in in we couple quarter, in figure the your what that that That internationally. pipeline that servicing get out be growth years. already the answer inventory that It a, to

sense, makes Yes, you. thank

Thank Scott comes next King. you, Stember CL from a question line from of our

please? question Your

Congrats on questions. and guys the quarter for thanks my taking

Scott. Yes, Thanks.

-- also maybe perspective? Maybe looking say you that the maybe about brands, four did down brands of the from brand XX were demand four from you're at side, you when on about an and inventory just You talk have what seeing you're lines, can those year-over-year.

of So would they that that them the suggest maybe are having closer getting to inventory need? that some

to may Brain, start, this Sure, can in. be I is free feel chime

seemed what is you bit. last So has was you was year I last would have to that there civil versus tell kind of year, died that down QX if look that apparent at unrest a little

trends fishing, On of that categories. nice like So the and we're but obviously, you side, all spikes the a tell some we're mix that. that seeing firearm on that, I'll we But had fishing camping, camping in year, X the and of we of and and things top saw less hunting market. last seeing million great saw the the to we XX million entered firearm owners of that hiking towards

term diversity again, brand So their lanes around brand hitting to stride. just our to. really my near I kind speaking some the I think trends, be of the in prepared mentioned speaks the able To I'm of alluded portfolio, of kind that's to kind what of to remarks of

a balanced But to that, owners. seeing portfolio. across we So firearm still entire demand those solid it are pretty when like from mix our new things accessories, firearm comes

it to want closer seeing where any where inventories, Got that get regards quite we've I to or time. are folks pockets off? things and been Are are know way playing still you starting we catch some up for to them

Andy. is we're don't this I way Scott, think off.

we brand very again, brand so the the said, all of four very the quarter kind sellers know I that seeing had once And pretty lanes, that we represented happy replenishment said Like replenishment in think in Brian remarks, we're the with of across lanes. our I we're top healthy. balanced that. prepared is again, the that

of ours the kind a uncertainty ramp chain. about This of in up talked supply and the Yes, in all of we the was because of strategy inventory.

so, next seeing to able anyone's for is might to strategically come the what is have that's up be product quarter And ship. you're the guess, to what to in prepare at that want least we us ramp but

we're So between selling and line seeing have what a we what we but pretty our POS. at tight through are are, customers still

the shooting biggest product just your on particularly one, are Got nice but stuff brands the of an take a well? it give but of related lanes that beneficiaries and last jump question up, starting which that side, probably there? are the doing is which least, to see to us nice imagine indication international I which

it's, so internationally and Brian. performing penetration probably camping right is it our expect. actually also this we're fishing a seeing Canada, might on little good particular surprise places in really you Yes, some now, But like Shooting in well brands. hunting bit, you is which incredibly and

I'd performing seeing the is think say surprise incredibly shooting be we're domestically. internationally. it that it's you what But well So is to across what pretty mirrors a closely with board, I would

Thank that's That all it. I have. you. Got

Scott. Thanks,

Thanks Scott.

comes Thank Capital. Street Mark from the of Instructions] you. question [Operator line Our Lake next Smith from

Your question please?

so new a trends? new about into just markets Are by Can to wanted bit driven strength customers? this in these into you you talk customers. existing seeing dig more entrants new some was first deeper a from still of or I guys. customer of Hi little quarter lot here

is this Mark, hey, so Brian. Yes,

to XX% four the distribution to really that -- X% one So that outlined you to four years. of next over pillars getting last support the that we, we've I'll growth five we call new is tell

land crossover, for then where has our person so start past. going interesting there's And the from about is in to which would are products there's to that so we've that expectation outdoor a the overlap same there And there an under good seeing Hooyman they interest also us. say are brands, going see I is more home like hunter. great with that we and and that's have in brand -- customers management Well, talked continued related hardware, is an we consumer

part stores. And some I they into a the I space. And so, essentially turning them a offer -- certain you large to want maybe those that the few a years from in to some that we go because but to help exited are space bit, had being present think address customers think customers that and that solution too, little ago, and are that asked of folks exited have

our seeing but ranch like paintbrush, and on I of board, And customers. of of what at our kind our and side, from customers, it we it were the quarter from traditional of especially I in continued farm some traditional customer great customer a core about interest board channels. that, stores, hardware, grew nice and wins. base the was And mean, I we're mean the you've core like the was across we're things across looking was, kind across mean, asked yes home just lot a and mean, seeing penetration and it base the growth, I So also,

So we it's as and wins strong customer then well. getting new there, are great some

of XX lane, storage million that X people and these bought we've we just the any people conversion firearm, to within million Defender kind of solutions, what instead these talked for are to buying, who kind cleaning, targets, seeing maybe you brand products, looks like that at, look a safety idea people and new conversion up from firearm but just avid of customers, a Okay, as about maybe et cetera? becoming within are end and buying firearm users,

more it you and went into when year a loyal what mean, head. as is seeing was brand the Yes, they on this rewind to wasn't up shoot want all and want the a consumer. secure it they hit store And to We that's in products of more I available. they Brian, moving get they bought interested firearm. folks came it they've now the weren't chain, to whatever that is accessories, we're ago, maybe those, offer about But it they learned safely. it safely, of getting home, it, the even, for

to we're first that go research is, now specific may want get and more thing brand interesting other of and seeing a sort bought they again, brand. their back The they've they firearm done agnostic,

shot well, because I go to buy to Laser, a say, comes a Red terribly. went equipped I'm going I wiser firearm, and or need the now I'm it in not a get they're they'll Dot to go just something with going little So They too. okay, to a I and range bit that want

well. are comes we when higher it seeing So like that attachment rates to things as

same or little they back think than with we're bit but consumer from. shift coming benefit had definitely of which a time, more second that time the a third I first So knowledge the seeing

to this kind you evolution categories in places in in you BUBBA, Okay, have play little are a and of as what the talked about to last gives at as in permission the and fishing permission reels. then your, where it you fishing, kind play you look question broader rods And bit, like say, and is, from assortment products? what your but of feel you've guys you me and confidence other of a is within

Sure.

we talked play its about -- referred water say, BUBBA about; you give established lifestyle. we a I'll talk permission play. tease this when to We we So we and to

road. log marching this ago, kind we So when we what that acquisitions that full how is play at into down went is. too, acquisition look insight a good do we whenever or process permission we're through years to an it's document of we not But of kind establish a few

that when water I this brand, or much there's like it's And mind, movement. play, grip, that feel to can time table same out a to no field in for BUBBA, been to Really, gas, It's a it's to we then freshwater came very felt acquired is Blade is has Bubba saltwater. a why, whether it. our didn't had like like lifestyle, years this when have this to which there's play at water introduce real addressed ago BUBBA, with permission said not just that. to do. there brand a the lifestyle, consumer. consumers they That's preference water a has we play few have we first It is We For lifestyle, nuts seems that and distinctive. basically, we we very which

boat. handle seeing red is a that see of BUBBA product become really You the on hallmark that's it And the on a boat.

you You of you is for a by walk It a legitimacy. having cooler can't YETI people on miss gives a your boat. And some it it boat. lot when like

which grips, if you is of and BUBBA several in years And in-house they these what we're so all think once development, from, doing February expecting. rods came that add we the it shelves

difference. the see You'll

expect It is, any difference. quality from BUBBA comes you'd with product. the feel it the You'll

So And our very Obviously customers. customers that's do and Mark. a well lot customers we feel gotten confident. so why we're we've of too, we good confident our e-com reception of brick-and-mortar consumer as from and research this

you, thank guys. Excellent,

Martin. thanks, Yep,

Mark. Thank you,

program. question-and-answer Thank hand the Murphy remarks. further program session does today's Brian the to you. this like I'd And of conclude any for to back

All right, thank you, Operator.

and please we speaking virtual Before Conference, two today. Best where CL Ideas on to that September next both Best note conferences Growth joining Conference Street quarter. Ideas the to again of for attending we'll September we you. you us meet some close the Thank King events be Lake XX, next look with week, hope We forward you, XX, everyone

the gentlemen Thank This you, your conference. ladies for participation today's in program. and does conclude

You may now disconnect. Good day.