Smith & Wesson Brands Inc
NASDAQ:SWBI
Smith & Wesson Brands Inc
Smith & Wesson Brands, Inc. is a holding company, which engages in the manufacture, design, and provision of firearms. The company is headquartered in Springfield, Massachusetts and currently employs 2,240 full-time employees. The firm manufactures a range of handguns (including revolvers and pistols), long guns (including modern sporting rifles, bolt action rifles, and muzzleloaders), handcuffs, suppressors, and other firearm related products for sale to a wide variety of customers, including firearm enthusiasts, collectors, hunters, sportsmen, competitive shooters, individuals desiring home and personal protection, law enforcement and security agencies and officers, and military agencies in the United States and throughout the world. The firm sells its products under the Smith & Wesson, M&P, Thompson/Center Arms, and Gemtech brands.
Smith & Wesson Brands, Inc. is a holding company, which engages in the manufacture, design, and provision of firearms. The company is headquartered in Springfield, Massachusetts and currently employs 2,240 full-time employees. The firm manufactures a range of handguns (including revolvers and pistols), long guns (including modern sporting rifles, bolt action rifles, and muzzleloaders), handcuffs, suppressors, and other firearm related products for sale to a wide variety of customers, including firearm enthusiasts, collectors, hunters, sportsmen, competitive shooters, individuals desiring home and personal protection, law enforcement and security agencies and officers, and military agencies in the United States and throughout the world. The firm sells its products under the Smith & Wesson, M&P, Thompson/Center Arms, and Gemtech brands.
Sales: Q2 net sales were $124.7 million, down 3.9% year-over-year, but management pointed to strong underlying retail demand and clean channel inventories.
Profitability: Gross margin declined to 24.3%, hurt by lower production absorption and tariffs, but was partially offset by lower promotion costs.
Cash Flow: The company generated $27.3 million in operating cash flow for the quarter, driven by inventory reductions and lower taxes.
Market Share: Smith & Wesson believes it grew market share in handguns, with retail sell-through up 7.7% after adjusting for channel inventory.
Average Prices: Overall average selling prices rose 3.5% year-over-year, led by new products and brand strength.
Guidance: Q3 sales are expected to be 8–10% higher than the previous year, with Q4 historically the strongest quarter and forecasted to see high single to low double-digit sequential growth.
Dividend: The Board authorized a $0.13 quarterly dividend.
