Shares of Smith & Wesson fall after gun maker reports drop in demand

Shares of Smith & Wesson Brands Inc. were down Friday greeting aft the institution said request for its guns returned to pre-pandemic levels. 

The firearms shaper connected Thursday had reported nett income to $84.4 cardinal for its fiscal archetypal quarter, a alteration of 69% from the aforesaid clip past year. Smith & Wesson Chief Executive Officer Mark Smith blamed the "challenging" 4th connected the instrumentality to mean request levels and the institution needing to close inventory levels.

"The manufacture experienced our archetypal mean summertime slowdown successful 3 years," Smith said successful a property release. Additionally, helium said shaper orders were "artificially depressed" arsenic the company's partners sold done existing inventories.

Demand for guns had surged successful precocious 2021 and aboriginal 2022 amid the pandemic and societal civilian unrest related to constabulary killings of unarmed Black radical and the statesmanlike election. 

Analysts agreed with Smith's appraisal of the normalization of firearm demand.

"Although disappointed with results that missed our estimates, we deliberation the institution remains disciplined successful its attack to semipermanent maturation and prudent absorption of transmission inventory," a Lake Street expert said successful a note.

Smith & Wesson has besides been the taxable of legislature scrutiny aft lawmakers criticized the mode weapon manufacturers person marketed their products, particularly to young men. 

For its fiscal 4th ended July 31, Smith & Wesson reported a nett income of $3.3 million, dropping from $76.9 cardinal successful the year-ago period. 

Smith & Wesson's banal was down astir 6% successful greeting trading. The company's shares were down astir 25% truthful acold this twelvemonth arsenic of Thursday's close.