Smith & Wesson Q1 Results

Smith & Wesson logo

Smith & Wesson announced its Q1 2017 results on Thursday, showing more than a 40% increase in net sales – to $207 million – when compared to Q1 2016. Not bad considering the quarter is typically a down one compared to the hunting and holiday seasons.

Between the financial highlights press release and the earnings call, I was able to discern the following information…

Modular Handgun System Competition – Smith & Wesson remains in the MHS competition, but does not anticipate the US military making any substantive announcements before the early part of 2017 (calendar year.) According to multiple sources, there are a dozen pistols in consideration for the military contract, with the M&P pistol being one of those. As I have reported elsewhere, the M&P submitted appears to be a second generation pistol that we can expect to see hit the commercial market at some point.

Handguns…and More Handguns – Smith & Wesson sells a number of AR-style rifles, plus owns the Thompson/Center brand of bolt action rifles. Even so, the company still generates some 80% of its sales in the handgun market. This may be reflective of consumer association of the S&W name to handguns, or could may also suggest where the market is investing its money. The company’s M&P Shield line is certainly popular for concealed carry, an activity that has been shown to be a driving reason for many people when buying their first firearm.

Rugged Outdoor Market – During the earnings call, Smith & Wesson execs used this term multiple times. In fact, it kind of seemed like a talking point. I anticipate that S&W will try to capitalize on this term both with existing non-firearm brands it owns and with future acquisitions.

ElectroOptics Division – Taking a page from the SIG SAUER playbook, Smith & Wesson now has an Electro Optics Division. The company formed the division when it acquired Crimson Trace, but it will not be limited to lasers. In fact, the company was very clear that the division would develop products for the entirety of the sight and optical market. While Crimson Trace is the base, the company sees “ample expansion opportunities.”

New Products – True to form, the company declined to offer any insight into what new products it will introduce in the coming months. It was stated that new products would be shown at the next SHOT Show, but no further insight was offered.

Disclaimer: Smith & Wesson is a publicly traded company (NASDAQ: SWHC). I have no financial interest in Smith & Wesson or any other firearms or outdoor company. Nothing in this article should be considered investment advice, nor do I claim any financial expertise. In fact, it is best to assume I am a financial moron, and nothing I say should be trusted.



Richard Johnson

An advocate of gun proliferation zones, Richard is a long time shooter, former cop and internet entrepreneur. Among the many places he calls home is http://www.gunsholstersandgear.com/.


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  • Giolli Joker

    Unless they’re announcing their order intake budget, there’s something wrong in this sentence. 🙂
    “Smith & Wesson
    announced its Q1 2017 results on Thursday, showing more than a 40%
    increase in net sales – to $207 million – when compared to Q1 2016.”

    • AK

      S&W operates on a fiscal year May 1 – April 30, and the current fiscal year ends on April 30, 2017. Nothing wrong with that sentence.

      • Giolli Joker

        OK, so they basically name their year based on the calendar year where it ends not where it starts. Fine for me.
        But I would think that most folks would consider Q1 2017 as the actual first quarter of the year yet to come if the proper context is not provided.

        • AK

          Yes, sometimes fiscal year can be confusing for people not familiar with the financial vernacular. Consider how odd it would be to have fiscal year 2016 ending on April 30, 2017, though, and the convention makes sense.

  • TRog

    love the Disclaimer at the end. thnx for the chuckle.

  • Harry’s Holsters

    I’m excited to see all the new red dots coming on the market. Hopefully Smith will bring something that’ll rival the RMR. The Deltapoint Pro did a great job on paper but seems to fall short.

    • Joseph Goins

      S&W doesn’t have the quality to match the RMR.

      • Harry’s Holsters

        I think you’re right but I really hope you’re wrong. I want someone to create a equal or lower profile RMR for sub $600 with a battery that can be switched without taking the optic off the mount.

        • Joseph Goins

          Too much R&D for a non-sight company.

  • Nashvone

    “This may be reflective of consumer association of the S&W name to
    handguns, or could may also suggest where the market is investing its
    money.”

    I never associate S&W with rifles and I own one. Honestly, I forget that my M&P15 is made by them. If they want to grow in that market, they need to put something out there that is distinctly S&W and NOT someone else’s design.