Does the Pandemic Make American Outdoor Brands a Buy?
Although the decision to spin off American Outdoor Brands (NASDAQ: AOUT) from former parent Smith & Wesson Brands (NASDAQ: SWBI) was made before the COVID-19 pandemic, the outdoor gear and accessories maker was able to capitalize on the opportunity of more people looking for outside activities.
Over the course of its first two fiscal quarters, sales are 60% higher than they were a year ago, and it's posting operating and net profits instead of losses. American Outdoor also raised its full-year guidance.
The outdoor gear company has a nice tailwind behind it, but prior to the coronavirus outbreak it was struggling to gain traction. Investors need to ask: If widespread distribution of vaccines allows for a return to a semblance of normalcy in our daily lives, does that mean American Outdoor Brands will also revert to its prior slow-growth state?
Source Fool.com
