Daily Management Review

Smith & Wesson sales down by 69%


Smith & Wesson Brands, the maker of firearms, has revealed its first quarter financial results for the current fiscal year. These results were quite disappointing because there was less demand for the company's goods.

The Carouselambra Kid
The Carouselambra Kid
The quarter's sales, which totaled $84.4 million, decreased 69% from the same period the previous fiscal year.

Just $3.3 million in net income was generated during the period, as opposed to $76.9 million in the first quarter of the previous year. Profit margin shrank from 47.4% to 37.3%. The corporation claimed in a statement that this is all due to the armaments market recovering to its pre-pandemic levels of demand.

The business added that orders for firearms were "artificially decreased" by the company's partners disposing of existing inventory in addition to the data being impacted by the typical summer decline in demand for such products.

Smith & Wesson shares on the Nasdaq exchange decreased by over 7%. Since the year's start, the company's stock has decreased by 30.7%.

source: nasdaq.com