Net income declined 22% to 27,694,000 from $35,647,000 in the fiscal fourth quarter ended Apr. 30 on revenues that were 4% higher at $229,186,000 from $221,117,000 with both numbers exceeding the company’s guidance which was lowered after Q3. But AOBC expects dramatically lower sales and earnings next year, and the stock sunk 8% on the news. Heavy promotions kept firearms sales afloat in the final quarter but drove gross margin down 200 basis points to 39.6%. The receivables writeoff from the Gander Mountain bankruptcy will end up costing a little over $1 million.
Firearms revenues declined in Q4 to $189.9 million ... Log in to view full article.