Smith & Wesson Brands, Inc. earnings on an adjusted basis fell 59.3 percent in the fiscal fourth quarter ended April 30 as sales declined 11.6 percent.

Fourth Quarter Fiscal 2025 Financial Highlights

  • Net sales were $140.8 million, a decrease of $18.4 million, or 11.6 percent, from the comparable quarter last year.
  • Gross margin was 28.8 percent compared with 35.5 percent in the comparable quarter last year.
  • GAAP net income was $8.6 million, or $0.19 per diluted share, compared with $27.3 million, or $0.59 per diluted share, for the comparable quarter last year.
  • Non-GAAP net income was $9.0 million, or $0.20 per diluted share, compared with $22.1 million, or $0.48 per diluted share, for the comparable quarter last year. GAAP to non-GAAP adjustments for income exclude costs related to the relocation. For a detailed reconciliation, see the schedules that follow in this release.
  • Non-GAAP Adjusted EBITDAS was $24.1 million, or 17.2 percent of net sales, compared with $37.6 million, or 23.6 percent of net sales, for the comparable quarter last year.

Full Year Fiscal 2025 Financial Highlights

  • Net sales were $474.7 million, a decrease of $61.2 million, or 11.4 percent, from the prior fiscal year.
  • Gross margin was 26.8 percent compared with 29.5 percent in the prior fiscal year.
  • GAAP net income was $13.4 million, or $0.30 per diluted share, compared with $41.4 million, or $0.89 per diluted share, for the prior fiscal year.
  • Non-GAAP net income was $14.6 million, or $0.33 per diluted share, compared with $44.4 million, or $0.96 per diluted share, for the prior fiscal year. GAAP to non-GAAP adjustments for income include costs related to the relocation, a gain on sale of certain real estate, and other costs. For a detailed reconciliation, see the schedules that follow in this release.
  • Non-GAAP Adjusted EBITDAS was $67.3 million, or 14.3 percent of net sales, compared with $96.6 million, or 18.0 percent of net sales, for the prior fiscal year.

Mark Smith, president and chief executive officer, commented, “Fourth quarter proved more difficult than we anticipated largely due to macro-economic and industry trends. While the combination of lower sales and production volumes, along with mix factors, pressured margins, we were able to partially offset the bottom-line impact through disciplined cost management and by leveraging our flexible manufacturing model. Looking at the overall firearms market, we continue to see consumers generally being cautious due to macro-economic factors pressuring discretionary spending. While new products and lower price point offerings are still performing well, overall conditions suggest headwinds will likely persist in the near term. Despite these challenges, we remain well positioned to succeed in this environment.”

Deana McPherson, executive vice president and chief financial officer, commented, “We believe that firearm market conditions have been negatively impacted by persistent inflation, high interest rates, and uncertainty caused by tariff concerns. That being said, the success of our new products has enabled us to maintain a leadership position in the categories of the firearm market in which we compete. We currently expect demand for firearms in fiscal 2026 to be similar to what we saw in fiscal 2025, remaining subject to economic headwinds such as inflation and the impact of tariff-related cost increases. 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 July 7, 2025 with payment to be made on July 21, 2025.”

Image courtesy Smith & Wesson