Smith & Wesson Holding Corporation reported revenues for the first quarter ended July 31 were $78 million, a 4.9% increase from revenues the company reported in the year-ago period. Overall sales growth was driven primarily by an 18.4% increase in pistol sales, which more than offset a high-teens decline in hunting products sales for the quarter. Mike Golden, president and CEO of the company, noted that hunting products (which include long guns) had been affected by a channel inventory correction and were also consumer discretionary items that had been most affected by an industry-wide retail slump.
Solid growth from pistol sales was boosted by M & P (military and police) pistols and Walther products, which increased from the year-ago period 27% and 19%, respectively. Likewise, law enforcement sales for the company were up 3% for the quarter and international sales skyrocketed 74% from the same quarter last year.
Gross profits, the decline of which was dictated almost entirely by floundering sales in the hunting category, dropped 6.7% to $25.4 million as compared to the year ago period. Gross margins declined 4.1% for the quarter, but management noted that profit margins showed a slight increase from the companys fourth quarter numbers.
Management for Smith & Wesson Corp. maintain positive expectations for the remainder of the fiscal year and beyond, and Golden extolled the Supreme Courts June decision to reinforce the 2nd amendment for an individuals right to bear arms.
Golden also assured analysts that the market for long guns would flourish again. “It is not a function of if, it is a function of when, and that represents a $1.1 billion market for our products,” he said.
