Smith & Wesson sales down 69%
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Firearms manufacturer Smith & Wesson Brands has published results the first quarter of the current financial year, which turned out to be rather weak due to a decrease in demand for the company’s products. Sales in the quarter fell 69% year-over-year to $84.4 million.
Net profit in the quarter was only $3.3 million, compared with $76.9 million a year earlier in the first quarter. Gross profit fell from 47.4% to 37.3%. The company said in a statement that all this is the result of the return of the arms industry to the level of demand that was observed before the pandemic. In addition, the company noted that the indicators were affected by the usual summer decline in demand for such products, and besides, orders for firearms were “artificially lowered” due to the fact that the partners of the company sold off existing stocks of products.
Shares of Smith & Wesson on the Nasdaq exchange reacted to the reporting by falling almost 7%. Since the beginning of the year, the company’s shares have fallen in price by 30.7%.
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