Tag: Smith & Wesson

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Smith & Wesson Gross Profit Up 35.5%

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Smith Wesson LogoSmith & Wesson released the company’s financial results for the quarter ending October 31, 2012.  For the second quarter (fiscal 2013), Smith & Wesson posted a gross profit of more than $48 million, representing an increase of 35.5% over the second quarter of the previous year.

Net sales for the quarter were up $136.6 million, representing an incredible increase of 48% over the quarter from the prior year.  Keep in mind that the quarter ended before President Obama was re-elected in November.

S&W noted in their results that they have increased their production capacity and improved their supply chain efficiency.  Even with these improvements, the company continued to receive more orders than they could produce.  In fact, the order backlog increased 122% compared to the second quarter of 2012.  The total value of the backlog orders is $332.7 million.  I wonder how much that jumped after the election?

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Smith & Wesson Income and Sales Above Expectations

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Smith Wesson LogoSmith & Wesson, one of just a few publicly traded gun companies, released a statement announcing preliminary sales and profit data for the second quarter of fiscal year 2013.  The numbers were a significant improvement compared to the same time one year ago and beat previous expectations for this quarter.

According to S&W, net sales were up $44 million, or about 48%, compared to the second quarter of fiscal year 2012.  Net income is expected to be between $0.23 and $0.24 per diluted share, which is above the company’s prior guidance of $0.19 to $0.21, and well above last year’s $0.01 per share.

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Smith & Wesson Posts Another Record Quarter; Looks to Future

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Smith Wesson LogoFresh off record breaking profits in the first quarter of fiscal 2013, Smith & Wesson is looking to the future, reducing operating costs and gearing up for increased production of the M&P pistol line.

According to a press release from Smith & Wesson, Q1-2013 (ending August 31, 2012) was quite good for the company with record net sales and profits plus a reduction in operating costs.

Key Points

  • net sales of $136 million, up more than 48% from Q1-2012
  • gross profit of $51.3 million, or 37.7% of net sales
  • gross profit up from $26.5 million in Q1-2012
  • operating expenses down by $1 million when compared to Q1-2012
  • net income a record $18.9 million, up from $2.3 million in Q1-2012
  • cash on hand at end of Q1-2013 was $60.5 million
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General Information

Walther is a “shrinking piece of business”

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Smith & Wesson and Walther have begun to part ways. According to information released by S&W in an earnings conference call on June 28, 2012, it is pretty clear why the split is coming: sales and margins.

But the split is not a complete parting of ways. In fact, 2/3 of the current agreements between the two companies will remain in place.

According to James Debney, President and CEO of Smith & Wesson Holding Corp., there are three separate agreements between Smith & Wesson and Walther:

  • S&W is the exclusive distributor of German-made Walther firearms,
  • S&W manufactures and distributes Walther PPK pistols made in Houlden, ME, and
  • Walther manufactures S&W M&P 22 pistols in Germany.

Of these, only one is ending in 2013: Smith & Wesson’s importation and distribution of German-made Walther guns. That contract will expire on April 30, 2013. The other two contracts will remain in place, and will be valid for two more years. Future negotiations could extend those agreements.

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General Information

S&W: Record Quarter, Record Year

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Smith Wesson LogoSmith & Wesson announced a record quarter and record year for sales and income.  Here are the highlights:

  • For the quarter ending April 30, 2012, S&W’s sales were up almost 28% year over year.
  • For the quarter ending April 30, 2012, S&W’s income was $17.8 million.
  • For the fiscal year ending April 30, 2012, S&W produced a record number of units, generated a record amount of cash and brought in a record amount of income ($26.4 million).

For anyone who tracks Apple stock, these numbers seem anemic, but for Smith & Wesson, they are very good indeed.

According to a Smith & Wesson press release, these records were driven largely because of the popularity of the M&P line of pistols and rifles.  The M&P continues to nibble away at Glock’s share of the law enforcement market, and more and more consumers are flocking to the guns.  Read a few of the popular gun blogs out there and you’ll see that everyone is drinking to Kool-Aid.

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