Apparently Walther was not making a lot of money for S&W. My good friend Richard at Guns Holsters & Gear reports …
Debney said that Walther is a “…shrinking piece of business,” and that the Walther line has “…lower gross margin[s].” In other words, fewer guns are selling, and those that do generate smaller profits than other products in the Smith & Wesson stable.
Debney said that 2010 was the financial peak in their relationship with Walther. That year, revenues on the guns totaled $44 million. By 2012, revenue had dropped $12 million to only $32 million.
S&W had no motivation to market Walther guns. Why sell a PPK and share the profit with Walther when you can sell a S&W Bodyguard and keep all the profit?