American Outdoor Brands Corporation (NASDAQ:AOBC) Q2 2020 Earnings Conference Call - Final Transcript

Dec 05, 2019 • 05:00 pm ET

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American Outdoor Brands Corporation (NASDAQ:AOBC) Q2 2020 Earnings Conference Call - Final Transcript

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Q & A
Executive
James Debney

mean I think you should think about it in terms of our guidance. As you can see we've guided for the balance of the year. We haven't broken it down by quarters. We've just given what we believe we'll do in the second half of the year. And as you can see, we believe that it's going to show growth over the prior year. That's largely as a result of the new product introductions that we'll be making for the balance of the fiscal year.

You heard me say earlier, we're going to be launching a significant number of new products just in terms of SKUs that's just over 300. And what's more exciting is that, we're entering six completely new product categories as well. So we're really expanding our addressable market and we're trying to live up to one of our long-term goals which is to ultimately address that $35 billion rugged outdoor market that we've spoken about for some time. So a lot of organic growth driven by those new product introductions.

Plus, even more exciting we've created a new brand which we think is really going to resonate with the consumer and that new product category as well. So we're very excited about that. So, definitely a lot going on as you say James and we've a lot of exciting things going on. So we're very bullish about the balance of the year. We have a lot of traction with the consumers, a good level of awareness. Remember, we have -- I actually misspoke in the remarks, where I said we have 20 brands. When we create one more, we'd be at 21 brands so -- and those brands really resonate with the consumer.

Executive
Jeffrey D. Buchanan

And James if you look at the guidance and we gave guidance for the first time for the whole year for outdoor products which we said 180, 190, while we only did 81 in the first half which means that the second half is 100 at the low end. And if you look in past years, just to show you how impressive that is, is it typically like Q3 and Q4 are down. So the -- if you put in 100 in the last half of the year, you're talking about increase over the prior year of over 30%. So, just in terms of a trajectory, everything that James talked about with the new products and brands, we're very positive on the second half of the year and the year. And --

Analyst
James Hardiman

That's helpful. And then -- I'm sorry, go ahead.

Executive
Jeffrey D. Buchanan

No. It's alright. It's alright. Go ahead.

Analyst
James Hardiman

Okay. So along those same lines, sales guidance is up $50 million versus the previous guide. You talked about the excise tax issue being $34 million to $36 million. So, I get to about a $15 million increase in the underlying business. Can you help us think about which side of the business that $15 million increase is coming from? Obviously, mix were much better