By Dhirendra Tripathi
Investing.com – American Outdoor stock (NASDAQ:AOUT) traded nearly 5% lower as the company’s reaffirmation of its annual outlook was found underwhelming.
The company sticking to its previous outlook left traders surprised since other statements it made suggested a more positive year. It said it is building up its inventory in anticipation of upcoming product launches and to mitigate supply chain risks.
The maker of products for hunting, camping and fishing closed the July quarter with inventories of $92 million, higher by 24%.
The company expects full-year net sales to grow by roughly 4% to $287.5 million. Adjusted per share is seen around $2.14.
Net sales in the first quarter rose by around a fifth to $60.8 million as people began to indulge after the monotony of a pandemic year.
Net profit almost doubled to $3.5 million from $1.8 million last year. Both sales and earnings beat estimates.