Smith & Wesson Brands, Inc. reported sales jumped 35.4 percent in the fiscal first quarter ended July 31, marking its first quarterly gain since the fiscal first quarter ended July 31, 2021.

First Quarter Fiscal 2024 Financial Highlights

  • Net sales were $114.2 million, an increase of $29.8 million, or 35.4 percent, over the comparable quarter last year;
  • Gross margin was 26.6 percent compared with 37.3 percent in the comparable quarter last year;
  • GAAP net income was $3.1 million, or $0.07 per diluted share, compared with $3.3 million, or $0.07 per diluted share, for the comparable quarter last year;
  • Non-GAAP net income was $6.1 million, or $0.13 per diluted share, compared with $5.1 million, or $0.11 per diluted share, for the comparable quarter last year. GAAP to non-GAAP adjustments for income exclude costs related to the relocation and other costs; and
  • Non-GAAP Adjusted EBITDA was $17.5 million, or 15.3 percent of net sales, compared with $15.7 million, or 18.5 percent of net sales, for the comparable quarter last year.

Mark Smith, president and chief executive officer, commented, “We are very pleased with our first quarter performance. Our top-line results reflected strong consumer demand for the Smith & Wesson brand at retail. Channel inventory of our products remained steady throughout the seasonally slow period this summer, indicating healthy pull-through of our shipments at both distributor and retailer levels. Innovation and our iconic brand’s reputation for quality continue to be big drivers of consumers’ preference for Smith & Wesson. Combined with healthy, lean channel inventories as we enter the traditionally busy fall season, we anticipate these tailwinds will allow us to continue to deliver strong results.”

Deana McPherson, executive vice president and chief financial officer, commented, “Bottom line profitability remained strong as disciplined cost control offset temporary headwinds from seasonally lower production volumes and inflationary factors. Gross margin in the quarter was negatively impacted by manufacturing cost absorption and inventory reserve adjustments, and we remain comfortable with our published financial model of annual gross margins of at least 32 percent. Cash from operations was $40.6 million, more than $33 million above last year, reflecting lower inventory due to strong pull-through of our products at retail and a seasonal reduction in accounts receivable. Consistent with our capital allocation strategy, our board of directors has authorized a $0.12 per share quarterly dividend, which will be paid to stockholders of record on September 21, 2023, with payment to be made on October 5, 2023.”

Photo courtesy Smith & Wesson