Remigton Outdoor Company, Inc. has issued its first-quarter 2014 financial report that showed net sales were down 20.3% from the first quarter of 2013. The company posted total net sales of $255.2 million versus $320.2 million for first- quarter 2013, a $65 million change.
In the firearm category, net sales for the three months ended March 30, 2014 were $134.8 million, a decrease of $59.7 million or 30.7% for first-quarter 2013. Centerfire sales decreased $45.9 million while shotguns fell $4 million, handguns and other firearms were down $7.2 million and firearm products posted a $2.6 million loss. Rimfire rifle sales remained stable.
Ammunition sales were up $3.2 million, an increase of 3.2% over 2013 with sales of $103.5 million. All other Remington products were down $8.5 million, a loss of 33%.
Firearm gross profit for the three months ended March 30, 2014 was $42.7 million, a decrease of $24.9 million, or 36.8%, as compared to the same period of time in 2013.
Gross margin was 31.7% for the three months ended March 30, 2014 down 3.1% from the 34.8% for the three months ended March 31, 2013.
In the ammunition category, gross profit was $37.3 million up $2.3 million or 6.6% compared to first quarter 2013. Gross margin was 36%, an increase of 1.1% from first quarter 2013.
On all other products, gross profit for the three months ended March 30, 2014 was $7.2 million, a decrease of $4.4 million, or 37.9%, as compared to the three months ended March 31, 2013. This is attributed to decreased demand in the accessories businesses, partially offset by increased demand in the apparel businesses.
Gross margin was 42.6% for the three months ended March 30, 2014 and 45.7% for the three months ended March 31, 2013. The decrease in gross margin was primarily due to lower sales volumes associated with our higher margin accessories businesses.
Total operating expenses for the three months ended March 30, 2014 were $61.7 million, an increase of $3.2 million, or 5.5% over 2013.
Selling, general and administrative expenses decreased 10.6% from the 2013 levell yet its percentage to net sales increased 2% to 18.5%.
