Sturm, Ruger and Company, Inc. said the third quarter of 2009 was boosted by a continued consumer demand in firearms and subsequential unit sell-through that spiked 50% over last year’s third quarter.
Management for Ruger called the third quarter “terrific,” as the legendary firearms manufacturer reported revenues surged 70.2% to $71.2 million from $41.8 million a year ago. Net income was $7.1 million, or 37 cents per diluted share, compared to a net income of $372,000 or, 2 cents per diluted share, in the year-ago period.
By product category, firearm sales increased 73.6% to $70.0 million from $40.3 million a year ago. Total sales for castings were $1.2 million for the quarter, down 21.9% from $1.5 million in the year-ago period.
In a conference call with analysts, CEO Michael Fifer said demand for Ruger products “appears to still be strong” as sell-through from distributors and retailers increased 50% from 143,100 units in Q3008 to 214,500 units in Q309. “Moreover,” said Fifer,
”this year-over-year growth in sell-through for the third quarter appears to have substantially outpaced the year-over-year growth in NICS background checks over the same period.”
Fifer added that 60% of Ruger’s year-over-year growth could be attributed to new products, including the popular LCR (lightweight compact revolver), the LCP (lightweight compact pistol) and the SR-556 assault-style rifle. Fifer also credited favorable results to enduring consumer demand stemming from last year’s firearm craze and the replenishment of inventories at distributor and retailer levels.
