Springfield, Mass.-based firearms company American Outdoor Brands Corp. on Dec. 7 lowered its full-year fiscal 2018 outlook as it reported lower net sales for the second quarter of fiscal 2018.
The company now expects GAAP diluted EPS for the financial year ending April 30, 2018, in the range of 33 cents to 43 cents, down from a range of 77 cents to 97 cents previously forecast Sept. 7 alongside fiscal first-quarter results. The forecast for non-GAAP diluted EPS for the fiscal year also decreased to a range of 57 cents to 67 cents from the prior outlook of $1.04 to $1.24.
The net sales outlook was revised down to a range of $650 million to $675 million, compared to the previous guidance of $700 million to $740 million.
During the three months ended Oct. 31, the company recorded net sales of $148.4 million, down 36.4% from $233.5 million in the year-ago quarter. GAAP net EPS was 6 cents, beating the S&P Capital IQ consensus estimate of 2 cents.
American Outdoor Brands also reported that it completed the acquisitions of Fish Tales LLC for about $12.1 million and Gemini Technologies Inc. for $10.9 million during the second fiscal quarter.
President and CEO James Debney noted that reduced wholesale and retail orders resulted in lower shipments in the firearms business. "Total revenue for the quarter faced a challenging comparison to last year when we believe strong consumer demand was driven by personal safety concerns and pre-election fears of increased firearm legislation," he said in a statement.
Demand for firearms has dropped under President Donald Trump, who represents a friendlier political environment for gun rights and earlier this year signed a bill rolling back a gun control regulation from the Obama administration.