Ruger has just released their disastrous third quarter results. Their share price fell 37.71% as of Wednesdays close!
This graph shows the last three months of Ruger (RGR) trading. Click on the graph to expand it.
Their CEO, Michael O. Fifer, wrote a letter to Ruger shareholders. He had this to say:
For decades, Ruger introduced innovative designs on a regular basis, stimulating consumer demand. That strength has waned in the past few years with the passing of Bill Ruger, Sr. and a weakening of the product development resources at Ruger.
Nothing new here. It has taken them 20 years to clone the Glock pistol and produce the recently released SR9 striker fired pistol.
He goes on to say:
Ruger has not participated in some of the fastest growing segments of the consumer firearms market. These segments, which include AR-15 style rifles, compact carry pistols and revolvers, and striker-fired, auto-loading pistols, have recently been the engines of growth in the consumer firearms market.
Several of our top distributors have experienced growth rates in one or more of these categories in excess of 40% for the first nine months of the year. We plan to develop products for several of these markets. We recently had a very successful launch of our new striker-fired, auto-loading pistol, the Ruger SR9.
They have already launched a striker fired pistol so that leaves compact carry pistols and revolvers and AR-15 rifles.
Remington, one of their major competitors in the rifle market, have just announced their first line of AR-15 hunting rifles, the R-15.
The Remington R-15
(The above photo is a photoshop I made… obviously. Not to mention the ‘evil’ 30 round magazine that Ruger will never sell.)
It makes perfect sense. The black, or more politically correct, camo rifles are what is selling.