American Outdoor Brands Corp (AOUT)

[FUNMAN]

TARIFF IMPACT SO FAR LESS THAN FEARED
Posted by SGB Media | Sep 9, 2019 | SGB Executive


https://sgbonline.com/tariff-impact-less-than-feared-so-far/


American Outdoor Brands said that since much of the company’s Outdoor Products & Accessories business involves China manufacturing, the company has been taking steps to mitigate their impact, including securing sources in other low-cost countries. James Debney, president and CEO, however, said those opportunities “have begun to rapidly diminish.”


He added, “Our supply chain in China is relatively sophisticated compared to those available in other low-cost countries. So rapid change is difficult. In addition, to bring in an entirely new manufacturer online takes time and the duration of the tariff is still very unclear.”


Due to the tariffs, the company now expects full-year GAAP EPS to be between 41 and 49 cents, and non-GAAP EPS to be between 70 and 78 cents. Previously, guidance had called for GAAP EPS to be between 50 and 58 cents and non-GAAP EPS to be between 76 to 84 cents.