The American group, which is involved in firearms as well as outdoor products, is ramping up initial operations at a new 633,000-square-foot logistics and customer service center in Missouri, which will gradually take the place of three smaller units in the U.S. The biggest benefits will come from streamlining fulfillment of orders for outdoor products in order to boost sales growth and to allow quick integration of future acquisitions in the segment.
Meanwhile, American Outdoor Brands is repositioning one of its properties, Bubble Blade, as an adventure-oriented lifestyle brand for anglers, adding premium knives and fishing pliers.
The Outdoor Products & Accessories segment is more profitable than the firearms segment of group, and it has been expanded to run also two electro-optics brands, Crimson Race and LaserLyte, which need to improve efficiencies and operating performance.
In the third quarter ended Jan. 31, sales declined by 6 percent to $41.9 million in the Outdoor Products & Accessories segment, but they would have been up by 4 percent without electro-optics. The gross margin reached 47.1 percent. Firearms delivered a 33.4 percent gross margin on 3 percent higher sales of $162.0 million.
The group incurred a net loss of $5.7 million for the period, after a goodwill impairment charge of $10.4 million. This compared with net income of $11.4 million in the same quarter of the previous fiscal year, which included a one-time gain of $9.4 million from the U.S. Tax Act. Excluding extraordinary items, the company booked a 90 percent increase in net profit to $8.9 million.