American Outdoor Brands Stock Continues To Be Overpriced

Summary

• American Outdoor Brands (AOUT) posted disappointing 1Q25 results with revenues down 4% and guided for an 8/9% decline in Q2, yet maintained yearly guidance.
• Despite new product success and Canadian expansion, AOUT's fundamentals remain weak, trading at over 40x earnings, making valuation unattractive.
• The company needs significant growth to justify its high valuation, but current trends and low margins suggest this is unlikely.
• I maintain a Hold rating on AOUT due to its challenging market conditions, high valuation, and uncertain growth prospects.