Smith & Wesson’s Mixed Quarter: A Tale of Two Firearm Segments

Smith & Wesson Brands has unveiled quarterly results that paint a complex picture for the firearms manufacturer. While the company posted a net loss of $3.4 million, or $0.08 per share, it managed to surpass analyst expectations. Revenue for the period declined by 3.7% to $85.1 million, accompanied by a contraction in the gross margin, which fell from 27.4% to 25.9%.

A deep dive into the product segments reveals a story of two extremes. The handgun business experienced a powerful surge, with unit shipments skyrocketing by 35%, significantly outpacing overall industry demand. This robust performance, however, was entirely offset by a severe downturn in the long gun category. Revenue from long guns plummeted to $13.6 million from $24.7 million, as shipments collapsed Read more...