Ruger’s sales are strong. Here’s why

    This is not a political post of any sort: it’s always interesting to study arms and ammunition sales just ahead of any United States presidential election.

    At least it might give you some explanation as to why your order isn’t shipping.

    I remember the last election, when I had to wait for over a year for a lower, and the delay was quite irritating. I don’t know if the delivery situation is as extreme this time, but it doesn’t seem so (in general).

    Sturm, Ruger & Co. Inc. (RGR) just released their Q3 figures, and as you could expect they’re having a good year.

    Below: One year graph from Yahoo Finance.

    Ruger

    Buy on the rumor, sell on the news?

     

    In their own words, here’s one reason why sales are strong: “stronger than normal industry demand during the summer, likely bolstered by the political campaigns for the November elections.”

    No surprise there really, BUT – it’s not the only thing boosting sales.

    Again in Ruger’s own words: “strong demand for certain new products, greater  availability  of  rimfire  ammunition  which spurred  demand for our 10/22 rifle and other rimfire firearms, and increased production of several products in strong demand.”

     

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    So, what’s selling?

    New  product  sales, which  include those  launched  in  the  third  quarter  as  well  as the Ruger Precision  Rifle,  the AR-556  modern  sporting  rifle, and  the  LC9s  pistol,  were $58 million  or 36% of firearm sales in the third quarter of 2016.

    Below, the AR-556:

    1Ruger

    As always, R&D and new products drive sales and at Ruger this is no exception.

    “Sturm, Ruger & Company, Inc. (NYSE – RGR) announced  today  that  for the third quarter  of  2016 the  Company reported net  sales  of  $ 161.4 million and diluted earnings of $1.03 per share, compared with net sales of $ 120.9 million and diluted earnings of 62 ¢  per share in the third quarter of 2015.

    For the nine months ended October 1, 2016, net sales were $502.5 million and diluted earnings were $3.48 per share.  For the corresponding period in 2015, net sales were $398.7 million and diluted earnings were $2.33 per share. The Company also announced today that its Board of Directors declared a dividend of 41 ¢ per share for the third quarter for stockholders of record as of November 18, 2016, payable on November 25,  2016.”

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    The Mark IV  pistols,  similar  to the classic Mark  III designs, but with a greatly simplified one-button takedown, the  LCP  II  pistol,  a major  re-design  of  the  popular  LCP  pistol  that  was introduced in 2008, and the American Compact pistols, an expansion of the American pistol family that was launched in 2015.

    Below: Ruger Precision Rifle ver 1.0 with Schmidt & Bender 3-12 and Aimpoint Micro in a Spuhr mount. Swiss B&T sound suppressor. Caliber: 308 Win. Still hard to get deliveries of the RPR. 

    RPR1

    “New product sales include only major new products that were introduced in the past two years.

    The  new  product  sales  percentage  is expected  to  decrease next  quarter  as sales  of the  AR-556  and the LC9s will no longer be included among the new products.”

     

    The 2017 SHOT Show is around the corner, and it’s apparent that new products are needed to drive sales.

    I have only one wish from Ruger: A Precision Rifle that can take larger calibers. I’ll have mine in .338 Lapua Magnum, or re-barelled into 6,x5x55 Swedish. Please reserve one for me. Thank you!

    Eric B

    Ex-Arctic Ranger. Competitive practical shooter and hunter with a European focus. Always ready to increase my collection of modern semi-automatics, optics, thermals and suppressors. TCCC Certified. Occasionaly seen in a 6×6 Bug Out Vehicle, always with a big smile.


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