Sales & Profits
Smith & Wesson announced a net increase in sales of 7.1% in the third quarter of 2014 (fiscal) when compared to the same period a year prior. When Walther sales are removed from the 2013 numbers, the net sales increase was up 16.7%.
These sales translated into a gross profit of $58.7 million, up $8.7 million compared to the third quarter of fiscal 2013.
Smith & Wesson credited new shooters as “strong drivers” of their growth. Additionally, S&W said the personal protection market was also behind increased sales. It is very possible that many of those new shooters are in the market for personal protection firearms.
During the quarter, S&W saw a sales increase of almost 30% in the company’s handgun lines.
Microstamping has become a very serious issue for the residents of California, and the gun companies who want to sell pistols to them. James Debney, Smith & Wesson Holding Corporation President and Chief Executive Officer, stated very clearly that the company will not adopt microstamping for their guns.
New Products for 2014
Smith & Wesson introduced a number of new guns at the 2014 SHOT Show. Debney stated those products, which included many revolvers, had been very well received and were selling well. In fact, Debney stated that the company has received increased orders for all of their revolvers.
However, expect to see additional product launches in 2014.
“We look forward to launching some notible new products in the coming year with a particular focus on expanding and strengthening our successful M&P brand,” Debney said.
Smith & Wesson uses the M&P branding on pistols, revolvers and rifles, so it is possible that the new products could be in any, or in multiple, of those channels. However, considering the company’s statements regarding strong sales drivers – new shooters and personal protection – one could reasonably guess that at least one new introduction will be geared toward these markets.Related