MW Inflation, tariffs put the brakes on this gun maker's sales

By Claudia Assis

Consumers are still cautious, Smith & Wesson says

Smith & Wesson Brands Inc. saw a 12% drop in quarterly sales as the gun maker said that "persistent" inflation, high interest rates and tariff uncertainty have plagued the firearms market.

Smith & Wesson shares $(SWBI)$ dropped more than 13% in the after-hours session Wednesday, after ending the regular trading day up 3.7%.

The company reported fiscal fourth-quarter sales of $140.8 million, down by $18.4 million, or 12%, from the same quarter last year. The FactSet analyst consensus called for sales of $152.4 million.

The quarter was "more difficult than we anticipated," mostly due to the macroeconomic challenges, Smith & Wesson Chief Executive Mark Smith said.

The company faced a combination of lower sales and lower production volumes, which pressured margins, and sought to offset those headwinds through "disciplined" cost management and keeping its manufacturing flexible, Smith said.

People continue to be "cautious due to macroeconomic factors pressuring discretionary spending," the CEO noted. New products and those that are cheaper were still performing well, but macro headwinds will likely persist in the near term, he added.

The gun maker forecast that demand for its wares in fiscal 2026 will be similar to fiscal 2025, subject to inflation and tariff-related cost increases.

Smith & Wesson, which makes firearms, gear and equipment such as handcuffs, earned an adjusted 20 cents a share in the quarter, compared with 48 cents a share in the year-ago quarter. The FactSet analyst consensus was for 22 cents a share.

The company's stock has gained about 8% so far this year, compared with an advance of about 2% for the S&P 500 index SPX.

-Claudia Assis

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June 18, 2025 17:04 ET (21:04 GMT)

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