Smith & Wesson Brands told investors on September 3 that it flipped a year-ago loss into a profit, with net sales up 32.3% year over year to $112.6 million and GAAP earnings per share of $0.06 versus a loss of $0.08 a year earlier. Unit shipments rose nearly 20% in the quarter, well ahead of the 7.7% increase in adjusted NICS, while handgun average selling prices rose almost 9% and long-gun ASPs climbed 18%, helped by new products making up 35% of total shipments. Gross margin rose 280 basis points to 28.7%, but $2.9 million of that came from a tariff refund management flagged as non-recurring, accounting for 260 of those 280 basis points on its own. Operating expenses rose $3 million to $28.1 million, the company used $8.8 million in cash from operations, and internal inventory climbed to $180.7 million from $156.3 million in the prior quarter, while the board authorized a quarterly dividend of $0.13 per share payable October 1 to shareholders of record as of September 17. Full-year revenue guidance of just 5% to 7% growth suggests management is not ready to extrapolate the quarter's pace forward.
Smith & Wesson Brands IncSmith & Wesson swung to a profit with net sales up 32.3% to $112.6M and EPS of $0.06 vs a year-ago loss.
