Smith & Wesson believes that their recent boost in gun sales can be attributed to first-time gun buyers according to an earnings release on Thursday, March 4th, 2021. In addition to the impressive sales increase, it also seems that Smith & Wesson has been able to keep up with the demand of the market by delivering over 1.8 million units in the first three quarters of their fiscal year.
Smith & Wesson Sees 102% Sales Increase from First Time Gun Buyers
This partial excerpt below from the earnings release features the key points behind Smith & Wesson 102% sales increase.
Third Quarter Fiscal 2021 Consolidated Financial Highlights
- Quarterly net sales were $257.6 million compared with $127.4 million for the comparable quarter last year, an increase of 102.2%.
- Gross margin for the quarter was 42.6% compared with 28% for the comparable quarter last year.
- Quarterly GAAP net income was a record $62.3 million, or $1.12 per diluted share, compared with $4.2 million, or $0.08 per diluted share, for the comparable quarter last year.
- Quarterly non-GAAP net income was $62.4 million, or $1.12 per diluted share, compared with $7.8 million, or $0.14 per diluted share, for the comparable quarter last year. GAAP to non-GAAP adjustments for income exclude costs related to the spin-off of the outdoor products and accessories business, COVID-19 related expenses, and other costs. For a detailed reconciliation, see the schedules that follow in this release.
- Quarterly non-GAAP Adjusted EBITDAS was $89.8 million, or 34.9% of net sales, compared with $15.0 million, or 11.8% of net sales, for the comparable quarter last year.
Mark Smith, President and Chief Executive Officer, commented, “I could not be more proud of our dedicated American workforce as, for the third time in a row, they delivered a record-breaking quarter for our great historic company. Over the past year, millions of our fellow Americans from all walks of life have chosen to empower themselves by exercising their 2nd Amendment rights for the first time, and our loyal employees have risen to the challenge – delivering over 1.8 million units in the first three quarters of our fiscal year alone, ensuring that these new members of the shooting sports community were able to choose the highest quality, innovative firearms that Smith & Wesson has been known for since 1852. All of this was accomplished while implementing and maintaining aggressive safety measures and process changes to keep safe in the midst of the COVID pandemic.
With possible new gun control measures being enacted by the new administration in the United States it is no surprise that first-time gun buyer sales have increased. After all, if something is about to become scares it is only natural for people to want to buy into the market while the items are still relatively easy to acquire. With the current trends in the market, I don’t think we will see too much of a slowdown when it comes to gun sales from reputable manufacturers like Smith & Wesson.