Smith & Wesson’s earnings up 40 percent in first quarter
Spectators visit Smith & Wesson’s booth at SHOT show 2016. (Photo: Daniel Terrill)
Smith & Wesson reported a 40 percent increase in sales in its first quarter, including a spike in handgun sales by more than $38 million.
The Massachusetts based gun maker’s total revenue in the months spanning April to August landed at $206.9 million, according to a filing submitted Thursday.
Firearms accounted for a majority of the company’s quarterly revenue. Smith & Wesson president and CEO James Debney said the company raked in $139 million in handgun sales and $44.5 million in long guns. Figures show a 37.9 percent increase for pistols and a 108.8 percent increase in long guns. Though the uptick in long guns appears hefty, the company said the long-gun pool is much smaller than its handgun line.
According to data released by the National Instant Criminal Background Check — the industry’s primary indicator of gun sales — processed 3.3 million checks during Smith & Wesson’s first quarter, down 16 percent from the three months before. However, checks are up overall by roughly 25 percent from last year, putting it on track to be the biggest year on record.
Though firearms are the strongest branch on the Smith & Wesson tree, the company intends to strengthen its slumping accessory line in the second quarter with the addition of Crimson Trace and Taylor Brands. Restructured under the Outdoor Products and Accessories division, the two acquisitions are forecasted to help bolster accessory sales, turning around a nearly $3 million loss in revenue.
Smith & Wesson’s earnings follow a familiar trend for gun manufacturers this year. Ruger’s second quarter earnings jumped 19 percent, sitting at $140.1 million while Remington’s sales increased $2.2 million, pushing the company to $204.3 million in second quarter revenue.
Vista Outdoor— parent company to Savage Arms, Federal Premium and Bushnell— reported an uptick of 23 percent in sales. Of the $630 million in sales for Vista, over half of that income was dedicated to gun and ammo companies.
Smith & Wesson has shown no issues in maintaining a strong presence within the industry. The company closed out last fiscal year with $722.9 million in revenue.
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Source: http://www.guns.com/2016/09/02/smith-wessons-earnings-up-40-percent-in-first-quarter/
