AOBC - American Outdoor Brands to Write Down $81 Million of Outdoor Segment Goodwill
American Outdoor Brands (NASDAQ: AOBC) is taking a huge, non-cash impairment charge against the goodwill it carries for its outdoor segment as the coronavirus pandemic caused major retail customers to delay or cancel orders for non-essential products.
While gun sales have surged over the past month, likely boosting American Outdoor's firearms business, the outdoors segment has suffered from consumers following advice to self-quarantine and self-isolate.
In an SEC filing, the company said it expects to see revenue decline and cash flows to be reduced, which is leading it in its fiscal fourth quarter to write down 45% to 55% of the $162 million in goodwill it recorded in its outdoor products and accessories segment.