Smith & Wesson Brands, Inc. reported earnings on an adjusted basis catapulted 157 percent in the fiscal third quarter ended January 31 as sales climbed 17.1 percent on robust handgun sales. The company expects fiscal fourth-quarter sales to increase roughly 10 percent to 12 percent.

 Financial Highlights

  • Net sales were $135.7 million, an increase of $19.8 million, or 17.1 percent, from the comparable quarter last year.
  • Gross margin was 26.2 percent compared with 24.1 percent in the comparable quarter last year.
  • Net income was $3.8 million, or $0.08 per diluted share, compared with $2.1 million, or $0.05 per diluted share, for the comparable quarter last year.
  • Non-GAAP net income was $3.6 million, or $0.08 per diluted share, compared with $1.4 million, or $0.03 per diluted share, for the comparable quarter last year. GAAP to non-GAAP adjustments for income exclude costs related to the relocation, expenses related to the opening of the Smith & Wesson Academy, and a gain on the sale of certain real estate.
  • Non-GAAP Adjusted EBITDAS was $16.8 million, or 12.4 percent of net sales, compared with $13.9 million, or 12.0 percent of net sales, for the comparable quarter last year.

Mark Smith, president and chief executive officer, commented, “We were very pleased with our third quarter results, which demonstrated continued market share growth – while simultaneously maintaining resiliency in our pricing power and profitability. In particular, our handgun results were exceptional, with unit shipments into the sporting goods channel up 28 percent, while NICS was down 2.2 percent. Our momentum is strong and building, our brand and product assortment are driving continued healthy profitability, and we remain confident in the direction and trajectory of our business against the backdrop of a healthy and stable market.”

Deana McPherson, executive vice president and chief financial officer, said, “Having focused on driving inventory levels down during the last twelve months, we are now turning our focus to increasing production to meet market demand, which should continue to have a positive impact on margins. We believe the strength of our brand, product assortment, and new product offerings are helping us drive growth and take share in an otherwise stable market. Therefore, we expect our fourth quarter sales will be up 10-12 percent over fiscal 2025 fourth quarter sales.” Consistent with our capital allocation strategy, our board of directors has authorized a $0.13 per share quarterly dividend, which will be paid to stockholders of record on March 19, 2026, with payment to be made on April 2, 2026.”

Image courtesy Smith & Wesson