American Outdoor Brands (AOUT) 5 Dec 242025 Q2 Earnings call transcript

Good afternoon, and welcome to the American Outdoor Brands' Second Quarter Fiscal 2025 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Liz Sharp, Vice President of Investor Relations. Please go ahead.

Thank you, and good afternoon.

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

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

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

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

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

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

we measures. non-GAAP financial certain First, reference

referencing financial results reserve Our inventory stock whether technology financial assets, compensation, of of tax to intangible are The acquired nonrecurring GAAP measures non-GAAP amortization and they reconciliation other implementation, adjustments. costs adjustments, exclude well income measures, non-GAAP be diluted in can always call, are today's on EPS. discussed earnings our as filings press on website. fully found EPS, Also, are reference we as our today's posted which release, when we

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

year yielding strategy. performance a the being given We we've has pleased second advantage. an dynamic the after thanks, us validate believe us. to very ability innovation share to to that strength More surpassed for environment. long-term innovate our unique a compelling we differentiation expectations, year made quarter and joining in results company, our believe our highly commitment and Liz, specifically, showcasing everyone, of our Thanks, our I'm

distribution, opportunities seize our successfully objectives and awareness, increase to evolving leverage to innovation conditions. We to and in staying to adapting Our goal expand that our second new our profitability while advantage our widen the us quarter. is agile allowing achieved market while brand asset-light,

single Here year increase than highest We delivered XX% sales our higher We by of our a last grew over examples. are year-over-year. over net We X% and international million, expectations. $XX some net sales nearly shipping achieved Shooting in in We growth delivered out adjusted facility. achieved our of We ever month Lifestyle Outdoor XX%. in October Sports year-over-year the Columbia growth EBITDAS year-over-year and net categories. of sales both

every especially that e-commerce, sales Importantly, year. And fiscal by domestic our it well driven traditional, entirely we new for the our products, second the planned growth have product half international. launches quarter positive of single the we channel, across was including in-line growth of and is delivered notable ahead that in

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retailers Canada; and Grilla of U.S. to are and are Maker across the MEAT! right products at Now Your large beginning several them. products pop behind up the

number our As we very see we that number is product on plans to one exciting revolutionary a will and our from our for products introducing from extremely our teams everyone quite new begin next previously, indicated I have brand. truly can't new finalized a particularly spin brands a new pipeline significant month. have for of product new of It's Caldwell wait sports. robust, shotgun

will to we're our to For partners. updates meaningful significant launches existing products, retail lines deliver revolutionary confident for value new these

that indications we're assortments FY us us give and these FY reception beyond the order when to early we Because a for indications net 'XX. initial retailers visibility fiscal These shelf of providing our sales guidance 'XX expanded space. strong extends outlook of for commitments and increasing degree with XXXX. the that, fact, the during their overwhelmingly for our The a opportunity for positive many with coming are products time planning our In preview quarter, upcoming many year. retailers of new provided was them second of had and

Looking underscores ahead, reception the retailers strategy. the enthusiastic of our from strength

in results a ready patience required future. quarter the our current that we the the discipline, believe company and execution addition, In to demonstrate is build for

things our awareness in innovation and this environment continue enhance sheet. asset-light distribution, platform and widen to and with flexible maintaining simple strong remain a expand will agile. we'll require advantage brand dynamic so profitability. Going to means a forward, This us balance ever-changing leveraging our Doing keeping

results. We both I'll what said, that it ahead things With forward these discuss to our financial and lies Andy look have more. With of to sharing excited I'm over that, to turn today. about

Thanks, Brian.

with results capital with balance We repurchase a share we're for second profitability mentioned, net our shareholders and very pleased maintained continue our sales return with Brian As expectations. the program. and sheet our coming above to in to quarter strong

walk sales X% for a details. Net over million, were last the QX through increase me $XX.X year. QX in you the Let $XX.X million

our ever month achieved highest from Missouri in facility. shipping we shared, Columbia, Brian October our As

background and Shooting from By tends align Our Missouri outdoor camping, combined controlling a plans, produce expanding protection ability XXX% net to to I'll in to gained we Sports solutions year. ship XXXX. of for grew our in last period. same personal target category about fishing, Products Outdoor was lease our optimize Claymore in Shooting job X.X%. check shooting consists which and made make to logistics, results, a don't October's which and all hunting, processing NICS reminder possible to includes sales level our MEAT, the category, this floor net shooting, with from than we drove here, to more part of unprecedented hunting, In strong that record family personal offset which been relating BOG to storage, January meat compared and outdoor Caldwell our add just team. In that grew were our workflow cooking X% shipments And and safe the in products. strength sales X% shipping level which and Tipton slight by performance. activities, of Great up able we've to our adjusted maintenance cooking our our by possible. delivered facility, while category, and facility rugged aiming, products efficiencies decline Products cleaning by protection, Lifestyle by distribution outdoor Grilla firearms, brands by Sports our for brand nearly accessories

and growth our of our comprise Turning that channel expanded long-term opportunities now Increased strategic the are distribution to channels. avenues distribution one plan.

to work to to a broader opportunities introduce we identify, products audience. consumer and our expand Specifically, secure

year. and channel X.X% traditional last by Our e-commerce compared X.X% by sales net sales to QX net our increased increased

channel from that includes As by websites direct-to-consumer stores. well our do have as not own sales as a reminder, brick-and-mortar our sales online retailers e-commerce

well. expand the our international markets as to continue presence We in

Our are in sales sales X% more total the consumers to our than reaching deliver net Canadian quarter international million, represented net helping before, brands growth of year-over-year $X.X XX%. and comprised nearly which ever of roughly of

basis year. costs in XXX timing last QX QX the year QX programs to a mainly point favorable of materialize inbound for The that XX%, increase Turning was that margin. occurred not Gross this year. some in XX.X% expected last in due from promotional to increase QX gross and was margin freight did

compensation in expenses. was as costs advertising driven well were $XX.X amortization, an $XX.X million asset to expenses operating expense. in The to operating year. a legal mainly as GAAP last offset the intangible by and compared lower increase million Turning for improvement quarter by reduction

great we reduction a OpEx disciplined employ cost the ordinary in this course Our management quarter is philosophy of demonstration business. the of

for large changes a the to for approach basis, we expenses Specifically, our as and grow in an ways the the a $XX.X Non-GAAP QX compared and cuts. allowing are unnecessary the and into $X.XX resorting amortization, QX expenses It's our intangible million our certain asset-light second a always us last agile $X.XX helps model us was this to to avoid level year. and GAAP second long of serve nonrecurring in without maintain year to $X.XX for looking when QX as slightly exclude to quarter expense sudden that long-term was in approach On operating to compensation over million cost line. On were non-GAAP year. expenses of the term, be us well non-GAAP basis, up our last in compared lower of quarter $X.XX the to responding stock they $XX.X environment to prior EPS operating occur. sustainability teams EPS year. This building costs will in supports top business. compared

occur. any are QX approximately our buybacks that year-end count Our may fully to count based outside expect $XX.X diluted and XX-month compared of XX.X basis, Adjusted last that on share quarter EBITDAS remain share trailing of share shares, we trailing through million figures EBITDAS a the On was million was ago. for million, XX-month $X.X million adjusted the up $X.X year. from $XX.X million year for to period a consistent

levels. of QX. by second driven and inventory, past our inflow which results flow. quarterly of and increases outflow were lower inventory receivable $X.X increase our business, This Turning of $XX.X sales QX We end quarter receivable seasonal approximately our nature now repurchasing The half of common first receivables and half highest $X the fiscal increase reflecting Operating cash We've with net where in of year outflow QX in operating by those in typically pattern cash million operating after sales million. AR in sequential mainly followed and occur our increase debt approximately the sheet in the no versus in quarter. by quarter of as of in as an the talked driven to second accounts from cash in cash our collect stock. was well and million, second net the about the ended of million for in year shipments, as by accounts QX the cash $XX higher was the second partially the toward the timing the we balance

expected holiday in support by sales expected QX. increased as million inventories levels Our for and the upcoming to $X.X replenish in QX season to

line reviews several As Brian very pleased retailers. are the with recent mentioned, our with key of we success

outlook initial major some load-in QX XXXX. products back fiscal then the into to for that by expect to are quarter the retailers drop beginning and directly approximately is This As than $XXX today. growth XXXX would orders new fourth in continuing supports for receive a and and end to sales increase Accordingly, discussed net quarter fiscal fiscal last those million providing inventory we we somewhat to we in higher our of result, of slightly XXXX. we expect our

capital expenditures. to Turning

of designed product expectations and is roughly for net mainly patent that CapEx annual for second on in of tooling X% quarter, model. and model line right and $XXX,XXX XXXX for in with are costs. operating tooling to patents, Our spent maintenance the fiscal CapEx We require investments, our sales

$X.X comes and first to facility, expect For full open year Missouri and to no it amount we and growth and to to foremost We've in to our XXXX, XXXX. We've This $X.X delivering the for we outlook very the a new expect in quarter small year which that the current to invested and when million fiscal million. importance outlet year factory was results out in always continue been includes the we priority. QX spring are allocation, ahead in spend the demonstrate disciplined build our capital of the organic exception. fiscal store of

we our continue growth, our out that and and can As our deliver to will opportunities criteria of to the capital sheet to shareholders fit we seek identify balance safeguard buybacks. return M&A opportunities strength through

$X XXXX XXXX. we million through million $XX XXX,XXX In repurchase average program approved of shares Board roughly an per Our share effective new a $X October at share. QX, September repurchased for price

for driven existing a growth Now ahead We fiscal have that turning into key to of about current year, and strength our increase our indications lines, beyond. excited and Brian to distribution launches that new as remain allowed retailers outlook. in The received only opportunities the lie for product fiscal in XXXX but by not outlined us from XXXX our new expectations combination well, opportunities. the product we

that growth the of would We of we at for compares range growth of midpoint X%. sales our Net year. million sales X.X% the guidance fiscal up original a sales sales range for This to expect to $XXX just are for increasing to net XXXX. million for net at of about to When growth looking $XXX QX, full net the X.X% year. framework our of yield

Turning to margins. gross

compared Our gross margins be expectations year. the we expect XX.X% have for and the margins improved, to for for XX% prior full now year to approximately gross

promotions early year. likely in that second fiscal in combined gross in first half QX call materialize to than half XXXX amortization occurred that inventory on of and mentioned earnings related are the margins discussed variances delayed to September, year, increased and we with the in lower second due of the QX the QX purchases earlier freight tariff half the I As of higher the to of our we be expect to

in higher QX As costs a by increase gross prior operating result, to variable to XXXX we regard and the XX%. With selling driven due range. expense, expect to OpEx year distribution we margins be roughly to sales slightly overall our expect over net higher fiscal

to the QX expect than in higher We prior year. QX OpEx slightly be

year, we've products sales are Based is adjusted of range growth have XXXX due X.X% in and upcoming from fiscal an year cost trade range represent our factors, given all reminder, of X.X% like our net other fiscal our we increased million the to able in-line it particularly early a new of million, EBITDAS future. into outlook net our between sales may profitability next while of our the growth of that the $XXX estimate OpEx X.X% to of Therefore, At XXXX, at as Show believe retailers in of or indications X.X% bit January. closer midpoint, million. the to 'XX, we we the products between typically higher more we midpoint. With to us get As for QX our and received don't provide fiscal quarters of bit plan when a for the million a this on for shows year-over-year to clarity until to be impact $XX.X which a that share new of outlook will XX% Lastly, have would to adjusted to greater fiscal administration, X% provide both new order cycle EBITDAS sales visibility fiscal and roughly relates in we we SHOT $XX $XXX than to it's the a around net represent our tariffs. would for to of early respect have these from

other any over roughly a now, on sales levels. our contribution XX% unforeseen that tariff yields or incremental model net current new barring impacts know For changes, we

increase distribution, putting our us indicated, best agile capitalize expand advantage our operator, profitability potential our be our that, opportunities. With the will brand goal please widen to call possible in our Brian from open on leverage staying the asset-light, and for questions position awareness while analysts. As innovation our to and to

with Our Instructions] from is Mark Capital [Operator first Street question Lake Smith Markets.

for Sturnieks today. the Mark Alex line Smith on

us insight You any that sales for give good for into other noted reception me, from give you line if the confidence curious First more retailers. could guess outlook? longer-term drivers one there's retailers? I just But that you in you're purchasing time seeing that

Brian. it's Alex, Sure.

So you're right.

giving even is purchasing first the what typically our sometimes of And February So way line of our around week when we is really, us typically flows They're means adding it most to for products, have with the to quarter, they're our second out the doing the so through year, made and figure the going -- line what customers. be following time making reviews our all those out some they're big are -- decisions that course. decisions. of of trying and some taking which incumbents over

I were said very is performing QX, in-line we thing interesting the think our this well. in year like products, very,

the resonating note and with of retailers So consumers caught that.

they see to want to and -- their They think increase as to bring that. they foot a AOB traffic, I they into people and want stores. way do

to [ out another excited. offer. ] showed planning the So they people the with excited them the when month, just bring begin and next else of we're opportunity in some we come see And products products, just to as it were stores. new we showing beyond response into what to their the our board, our had was traction with they more of that excited And across see to line reviews

give which want actually FY So following sooner. year year's -- is why waiting summertime, lot guidance occur typically instead load-ins of they a load-ins a to the that the usually we later, for some typically in those of

months wanted inventory points end what to towards we year. would get just that saw up going Obviously, load-ins a the year. have context than to And frankly X the we're going some be that So, up the the little products of of end would to we stronger earlier these typically those going bit hold than to because want to about into sooner of from towards the retailers see of later. put is inventory have we're coming

has line they as led as us us be to given just of bullish It's sight. they've what are. So great

the how industry Okay. additional And you could provide recently, market quarter? shooting color that products on performed in in sports But there. weakness in saw some good growth then, given the some you some

Sure.

So Brian this again. is

we to There So comment are with generally, yes, made I we tend say, do the that. would the NICS. to track some that exceptions

out the more areas One our of of is long-term reliable the few stronger tend things ago, into to that one those expand a within categories and years growth, that laid shotgun one of Sports is Shooting activities really and to and we sports. strategies have

begin our, put our our we line, as and used that Shooting terms of place with. we that prepared so then. And that call we has on out we've Claymore with remarks, diversify in in came it called And out a into we've Sports to especially, additional for products, exceptionally side. ago, brought our new years helped then the few And well products mix beachhead. since we really And line in it's line done us revenue the that

said, the did of what's we we because in reliable of more that great stronger ago, So see, protection growth put and a place But we're of side of years personal into little diversity several seeing bit those and those areas. like of initiatives nice into actually some we because growth is that softness our business.

to between prepared around balance And Okay. also me. for mentioned the a the any but last just there guess, I of on it of M&A buybacks the in are are your And there the new you what changes more right seeing out investments business, now? sheet, capital so philosophy focused market in remarks then the use terms in in then and M&A, bit, little you one

Alex, talk the and Yes, then can I'll first is M&A. this take Brian Andy. part about

philosophy unchanged. allocation has remained capital our So

have we priorities. So X

M&A is First what the and growth that that really innovation second piece organic is organic we've our priority. And product this again, supports on foremost talked about development, new advantage. call, growth.

looking absence three, the in. space would to buybacks. complementary is And M&A the we're of in always permission our authentic fit in compelling brands that in number then kind we're brands, of for So play

Board -- going you So back. we're our our supports that $XX be new going authorization. to I And the buy to our we're we're opportunistic believe million saw think with we stock undervalued, when

I'll did we're in the be then to new of our support add coming facts. bets that we of on we we to kind the need to And administration, suspect in business before philosophy, place into potentially not trying further a would have Yes. flexible. And

to to Andy so make of that us what be gives to And that ways changes respond and to that said, sure appropriately balance sheet that's our because we greatest the with do that we're right innovation one that and front play to continue one believe flexibility any our opportunity strong have really engine. of us, the in is is out now able seeing

So sure, We to little just that's we've speaks got that thing. over one sustainability want and make buffer too, a that to time.

to have or that I to the looking is company, can continue are same want we're to new at a I relates system, right have we brand think very, Andy in for the business, the we're frugal, fit attributes for which we is it system. brands have, and very to be As aggressive sustainable we our ultimately, that M&A, and The innovation. that that one, within we right and very it's continue targets. be have vessel And that's Secondly, But very that. important of We -- continuing the last hard certainly M&A but problem little find could any our right we very very right and very aggressive. also M&A a pipeline there the open-minded. see to for word. And companies, at -- right, say But the that. I is we be for brand list new also slowdown pretty money or reasons have for our so to of to begins X months. a that to that Curious again be open to to we're that look things shareholders' extensive; if year, bit the a the overall, after commit disciplined, that, be of we want before over -- the up see variety a seen we in looking would

is Koranda Matt with Capital. ROTH question next The from

acceleration I sales seeing outlook, you're sort are -- the of of just in the third we quarter that suggests the with with heading year Maybe fiscal giving, end into combine if towards year the full here. an it 'XX the that

we the finer some take Just sounded point items to wondering saying could were a acceleration? It product willingness some load just introducing. the out you given seeing that there's year play the here entering the like, is acceleration driving in there if guess, of any in get are the that the like of you Grilla, of put that MEAT But you're what here Maybe Brian, you're rest I also on additional additional in for Grilla, from color traditional sell-in the and innovation terms especially sales? channel? that on

Yes, absolutely.

gets seeing be in it it's off back be product. only across do for your X or to And this answer about year the brands most how it before. is why think thought charge. Gap]. because move painful this right type -- Yes, acceleration, question a to of they I a question way that hard would an like our painful X I and that. So Matt, out now. They're expected them. And of I long a seeking innovation brand horses there It's change in you given in we're And the that planograms what would that bring retailers willing the I of Brian. of part, that would really they think because quo really, would idea for haven't as the to leading to And once and point, is for a new oftentimes That's the retailers to [Audio portfolio. status

And across a make really leading it's new earlier for to it our to -- that their that. that, innovation. It's line is a turnkey this walk products, product of And it really by new want the products. this cross-category to across I move truly because When is really provider entire advantage taking being So is of ability products, or willing whether our board grabs seeing and to they then what's -- to of portfolio if innovation to some and it It's they products, in when quo off we're and again, status their they compelling the in fact provide of the but also that it's can gets it this access they're our attention. idea comes back stores the have walk just innovation. plug merchandising. our people new

a said it's in shortcut, remarks. the prepared I like So

So it's some those X peers. right things standing of are our that above I think out now really

more to And take to across so the product. that's led AOB board on willingness what's this

but across I X had board. to you, strong it's brands or wish the board. very X So the I across give it's

high-single wanted giving, philosophy sort I on Okay. guess of providing. it just you're fiscal Again, outlook the out? sort something some terms it's you're least mean, is And that rationale of And further that? you've why at digit that that the not I Street of you're Wall hear. mid- the additional demand far it's seeing provide of -- any of why No, load-in on to color outlook inflection maybe -- good out, concerned, but to to some it additional outlook maybe what's kind Is driving Maybe an observed? that on traditional that's then far far so just growth channel? for provide in just on pretty guess guess, that's away. I is the thoughts get 'XX I your

to X, line then beginning only but with we we sight we an products in the year, facts free seeing The to a traction the part gave those of quarter, year feel rest and thought this point, had if hesitant that in-line before not X reluctant not guidance. line of tend you Brian, X the the jump to that the be start gave then in. sort next with in your customers, that and would second going course, coupled or to us our the, whether into in-line we successful really things. that to saw give something be reviews on pretty think of the call again. One, of we acceleration, Andy, or of quarter it forward, of that lot and this we conservative. Matt, confidence. And say, let's to large sort products have us, And It's more Yes. getting second those I'll were of we're of give or I know like and are guidance.

diversity retailers, to whether a an it across us goes provide out large number outlook farm in little such out for really was the a range it's it or e-commerce that able put different us we add retail, far. that? anything to home next That gave to of of it's expands for year. Andy, So you'd this character or that all those. the it's to confidence at it's But of set be channels, forward across because mass

No.

Okay.

I was that that mentioned. also, through third with you facing on just quarter, if the cover any comments or coming still tariff the to in? regime guess, especially clarifying us that just gross around I walk tariff wanted the the we amortization And basis thing margin front. headwind you thoughts exposure a we're Andy, other on then the could from year-over-year have left Maybe for The new

Andy. Matt, this is

it's second much the half as the pretty the in last year, of shaping saw So up what we year. same pattern

half. off So the in the start higher the are inventory year half the first amortize of going have expect -- second to in purchases to we to we

said much on to we be I'm pretty above that a little so going or year. it's so. a XX% we story the or last showing roughly the like of is expect bit similar those variances. XX% amortization for But So QX

that had talked other expected the remarks of The push we is part the that going we QX, do prepared believe we to into are piece in promos QX. QX, about in

going want of do you to tariffs? then, that's talk play kind that. And about So to into

months. thought something we've few about This talk just to aren't given a anyone's then If situation really and give may we keep just don't light is sure things at this I can brief. that sort try -- it want shed about. some about bets This philosophical isn't here we that This today. Brian the again. a we what and fluid can. is tariffs. for how to us not we've But guess place a point. that for I and it I'll planning that degree land where is you been standpoint, like it's to Certainly last quick a that to on realize from in think a I'll lot planning topic Yes, of the And of looks

I forward we and good as really think incoming especially from context, administration, that will the learn be Matt. go more

of to is on making going what theme big even not decided It's we theme ours. do back controlling big culture. embedded to this business our us you've of can unknowns. our we ultimately, we're heard in become to why start a So That's changes That's based years going what control.

as so what is on And control second, as as agile possible. staying we that as much X down much leveraging focus advantage; possible. we to can do innovation we can what is One and comes tariffs, of instead is what here, that really And the in things. context

isn't first quick So increase, on -- know innovation advantage. We real if continue do with happens to we which all This this. they the depending rodeo. tariffs, what on

seen overall, don't others levers I We innovation But several that before. us have. gives this have think perhaps

through We out for we -- and our For power our lengths to products some really to them undercut really, got that of our IP one, protection. some new that make largely we've it competitors of done we protection for with that gone each it really We've and through introduced to great come products products, sure do is tough to do. pricing -- prices believe difficult our year. makes for a lot have

and being us, of don't that layers new any products. to for able of to some coming margin, those our business feather time, of protective to see here. use we So XX% from we difference were XX% in Last

then they more these go solve ultimate it's real is for afford going call for buy from lastly, Because that our piece gives innovation them. have. And more it we the the person what is don't to So out in brands. it's such affluent to pipeline, who others we'll products. problems person in can, use that with play And is, premium to they is they're space advantage a that the I And the those a activities. identify arrow an that our And have think the it, the, tend believe, strategically. then loyalty. resilient on and We that especially brands more secondly, the continue we just us robust enthusiast, consumer can consumer, that quiver products I'll best

China, that perhaps in so only in X the the we're in a on can and and or that trust in while we to feel make -- years suppliers the partners move Gap] answer questions with think agility, I it we've maintaining over able existing I several because like us do also be quality talked becomes within sheet great So to capacity suppliers. and themselves we [Audio we that a comes built also but if we a with outside the great point well. quote those makes to is a other have with to value, a China about they network great X agility, But seek continue relationships want but But ultimately, sense that partners asset-light come very can of great as innovation who have going it partnerships so we're spot ultimately, there. And of new clear, just this our always way, strengthen quick over maintaining and existing products change to is whatever real strong being have for even businesses questions that though, built anything our our said, we're staying us, and with They're advantage And with to footprint more over of to and we've gone through that at then years. With spot China. balance true We built optimize products been years. their risk many -- not clear what's X about here, length such should partners that outside have for for with long-winded more ours. our our to of our today they is vast fact out partners we we

started we established doing tremendous at or have suppliers we with So that for Rolodex least contact. of or it, call a last, business X the X built years, have we have

So want on we're not most quickly make a certain we not that our be because and area that's of sure placing we to might we're world too it think the moving bets that optimal. just where

I as it. as done to that. and think we've have have We that possible, seen others we optionality do want we and believe regretted maybe that have that much

sense about. are So for makes and achieve the the great that things that if most overseas, your to and a we for and question, the us be China. they agile able change, value, But made to should of in And talked are change to answer made to what our of today, and us that's many accordingly. look, products the those that in capacity like be move do enough quality feel majority I we're spot

waiting? So are you still

my is name. Long-winded Yes. middle sense. makes That

long-winded don't I mind So answers.

of It the opportunities you then could at a you sports? least But maybe few What activity, but what product the I you characterize seeing? outdoor can the seen on are months? looks you've types a wanted M&A see seeing? maybe -- did, what Okay. at types if of touch to deal the flow. guys guess, shooting could sounds getting and upon on over lastly, activity expound last seen, are And way briefly funnel, you've side opportunities more just of activity funnel like you that deal I pause Just you're you any versus bit in the you

here. question. Brian Great again Yes.

down really we're We're coming break to many, Sports on market. okay? whole the lot. seeing category, many -- by Shooting channel side, seeing not not by it First, I'll So a companies

soft. that pretty has that be the just think continued because is market main I reason to for

aren't great off So to numbers sellers of. for there run work rate

Lifestyle obviously rewind either more really, We're the variety On many to losers. and brands the winners that the it of Whereas the a to side. much terribly. are hard well on or see side, pick and trying was spotty. I Outdoor to companies sell, really say opportunities like little there, to are it's that few years ago, and well, pretty like activities seemed everybody seeing a would it retailers there's really we doing seeing doing a doing it was difficult see -- was

protect environment really adequately few theirs. around this it's in or and of very clear have are Now winners And very to able themselves competency there honestly clear. been core very rally it's a

brands some cautious very because businesses the -- really I a interesting use less there. I'll neat of Again, So that space, and us. few like entering exploring pretty there potentially today pet use the the believe Certainly, and in opportunities that existing that say vessels that to to we but some innovation it, brands are we're are space. be we're seeing there some a like areas exploring we probably with we're outdoor could to for Grilla. really spaces vault innovative just we've But really product perhaps play vessel, of that, some ideas the things brands and bring our ones that us in don't interesting that. Even got, would brands. frankly, word call Those new well, right adjacent more are like are, for But market. in I'll backyard. because there play

those in So find have, then already ideas adds those for upside plug to just we and we further where that can businesses. of brands which some those

So but of we're things, to the able a at winners of adjacencies, some outside losers range see more this and point.

remarks. like concludes to Murphy the our conference closing back any I would over turn question-and-answer for session. Brian This to

Thanks, operator.

speaking towards else quarter. to our to head joined as and and an exciting employees you loyalty, company look long-term future. and hard you again work today, and next those us holidays, to So we on we move To happy into a like season, forward to who whose with forward wish special healthy I'd a holiday give everyone continue we thanks our the to the dedication path employees

The Thank for concluded. today's presentation. attending you conference now has

disconnect. now may You