Why Walther And S&W Parted Ways

    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?

    Steve Johnson

    I founded TFB in 2007 and over 10 years worked tirelessly, with the help of my team, to build it up into the largest gun blog online. I retired as Editor in Chief in 2017. During my decade at TFB I was fortunate to work with the most amazing talented writers and genuinely good people!