American Outdoor Up 89% in 6 Months: Buy, Sell or Hold the Stock?

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American Outdoor Brands, Inc. AOUT stock has delivered a stellar performance over the past six months, skyrocketing an impressive 89.2%. This rise far outpaces the industry and the S&P 500’s growth of 29.1% and 5.4%, respectively.

On Friday, the stock closed at $15.74, just 1.6% below its 52-week high but 111.3% above its 52-week low. In the same time frame, other stocks like On Holding AG ONON, Acushnet Holdings Corp. GOLF and Academy Sports and Outdoors, Inc. ASO have gained 49.3%, 16.5% and 6.8%, respectively.

Price Performance of AOUT

Zacks Investment Research
Zacks Investment Research


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Technical indicators imply AOUT's continued strong performance. The stock is trading above its 50-day moving average, signaling robust upward momentum and price stability. This technical strength underscores positive market sentiment and confidence in AOUT's financial health and prospects.

Factors Aiding AOUT Stock

American Outdoor Brands attributes its growth strategy to the company’s strong focus on product innovation and expanding distribution. The company's consistent pipeline of new products, modernized merchandising and cross-category innovation positions it as a reliable partner for retailers. This strategy drives growth and retail partnerships.

During second-quarter fiscal 2025 conference call, American Outdoor highlighted that its robust quarterly growth was driven entirely by existing products, even before the launch of new offerings planned for the second half of the fiscal year. This underscores the strength of its innovation-driven strategy, which continues building stronger relationships with retailers and consumers.

The company’s innovation edge lies in its consistent pipeline of new products, distinctive merchandising solutions and AOUT’s position as a cross-category innovation partner. Together, these elements represent strategic investments made over the years, which are now delivering tangible results and reinforcing the foundation for growth.

AOUT emphasized three key drivers of its innovation strategy. First, the company’s evergreen pipeline of breakthrough products not only excites consumers but also addresses retailers' need for traffic-driving solutions, with some of its most revolutionary offerings yet to come. Second, the company has modernized and rebranded key labels like BUBBA, Caldwell and BOG, featuring updated logos, sleek packaging and impactful displays that command attention on retail shelves. Third, AOUT positions itself as a cross-category innovation partner, offering retailers a diverse portfolio of high-quality and innovative brands. This turnkey approach allows the company to deliver a consistent stream of exciting products across multiple categories, making it a reliable partner of choice.

American Outdoor has raised its fiscal 2025 net sales guidance to $205-$210 million, representing a 3.2% increase at the midpoint, up from the previously projected growth of up to 2.5%. For the third quarter, the company anticipates net sales growth of approximately 5%. Additionally, AOUT has improved its full-year gross margin outlook to 45.5% compared with 44% in the prior year.