Smith & Wesson Brands, Inc. reported that sales jumped 32 percent in the fiscal first quarter ended July 31. Operating earnings on an adjusted basis nearly doubled due in part to tariff refunds.

The company continues to expect fiscal 2027 revenue will grow approximately 5-7 percent over fiscal 2026.

Financial Highlights

  • Net sales were $112.6 million, an increase of $27.5 million, or 32.3 percent, from the comparable quarter last year.
  • Gross margin was 28.7 percent compared with 25.9 percent in the comparable quarter last year. During the first quarter of fiscal 2027, Smith & Wesson received $2.9 million in tariff refunds. These refunds favorably impacted gross margin by approximately 260 basis points and represented a non-recurring benefit.
  • GAAP net income was $2.6 million, or 6 cents per diluted share, compared with a net loss of $3.4 million, or 8 cents per diluted share, for the comparable quarter last year.
  • Non-GAAP net income was $2.6 million, or 6 cents per diluted share, compared with a net loss of $3.4 million, or 8 cents per diluted share, for the comparable quarter last year. GAAP to non-GAAP adjustments for income exclude costs related to the relocation.
  • Non-GAAP adjusted EBITDAS was $13.8 million, or 12.2 percent of net sales, compared with $7.4 million, or 8.7 percent of net sales, for the comparable quarter last year.

Mark Smith, president and chief executive officer, commented, “We are off to an excellent start to fiscal 2027. Continued solid demand for our products in both the consumer and professional channels in the first quarter were a direct result of our purposeful focus on innovation, the strength of our industry partnerships, operational execution, and the power of the iconic Smith & Wesson brand. We delivered significant year-over-year increases in all key financial metrics, including 32 percent growth in net sales and an increase in earnings per share to $0.06 from a loss of $0.08 last year. This continues to be a story about brand strength paired with a purposeful long-term strategy. With this momentum, we expect our second quarter to significantly outperform last year on both the top and bottom lines.”

Deana McPherson, executive vice president and chief financial officer, commented, “We continue to expect a normal seasonal environment and strong demand for our products, resulting in anticipated sales for the second quarter of roughly 10 percent above last year. For the full year, we continue to expect that our fiscal 2027 revenue will grow approximately 5-7 percent over fiscal 2026. 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 September 17, 2026, with payment to be made on October 1, 2026.”

Image courtesy Smith & Wesson Brands