America’s new love for hunting and other outdoor pursuits will likely continue after COVID-19 is eradicated, according to gun maker American Outdoor Brands Inc.
“There has already been a change in the share of the portfolio” of indoor businesses like movies and restaurants, said Brian Murphy, CEO of American Outdoor Brands, during the company’s second quarter earnings call . “Obviously there will be some comeback once a vaccine is widely distributed, but these are the people, at least, again, what we are seeing, intend to continue this, now that they have this new activity for which they often did not have time before or even to try. “
| Teleprinter | Security | Last | Switch | Switch % |
|---|---|---|---|---|
| AUGUST | AMERICAN OUTDOOR BRANDS INC. | 21.89 | -0.83 | -3.65% |
Hunting license sales rose 12% nationally this year, as Americans opted for socially remote outdoor activities that allow them to meet health guidelines, according to The Wall Street Journal, citing the National Shooting Sports Foundation gun trade group. The increase in participation is expected to result in 1 million new hunters this year.
The renewed interest in hunting and other outdoor pursuits like fishing and camping were among the reasons American Outdoor Brands on Tuesday night, alongside its quarterly results, raised its outlook for the rest of the l ‘year.
The company now expects 2021 net sales to be between $ 235 million and $ 245 million, compared to earlier forecasts of $ 195 million to $ 205 million. Profits are now expected to be between 52 and 70 cents per share.
American Outdoor Brands’ second quarter revenue increased 66% year-over-year to $ 79.1 million. The increased sales helped American Outdoor Brands earn $ 7.3 million from a loss of $ 393,000 a year ago.
Rising demand for guns following civil unrest following the death of George Floyd, a black man, who died in custody in Minneapolis, and as buyers rushed to purchase guns guns, also boosted arms sales this year. the 2020 elections for a possible policy change.
Small Arms Analytics and Forecasting chief economist Jurgen Bauer said earlier this month that more than 20 million firearms were sold in the first 11 months of the year, a record. November sales increased 49% year-on-year to 2.1 million units, the smallest annual increase of 2020.
Soaring gun sales have caused an ammunition shortage, according to Vista Outdoors Inc. The sport shooting company said last month it was working on an “unprecedented” Billion dollar order book.
