Smith & Wesson Revenue Destroys First Quarter Expectations
Smith & Wesson announced a revenue increase in its first quarter in 2018. This is despite the current gun climate and recent protests at the company’s headquarters.
Even better, this follows a drop in fourth-quarter sales for the company’s fiscal year, which ended April 30. During that announcement, American Outdoor Brands, Smith & Wesson’s parent company, issued a conservative outlook for the next year. In fact, the company projected tepid gun sales into the next fiscal year. Now the company is optimistically revising sales projections up to $630 million.
Smith & Wesson Revenue Reaction
“We are pleased with our operational and financial results for the first quarter,” said Chief Executive Officer James Debney. “Our increased profitability was driven by consumer preference for our new products, reduced promotions versus the prior year, and solid progress on a number of our expense reduction initiatives.”
Smith & Wesson revenue increased approximately 5.9 percent, mostly because of a spike in long gun sales of almost 38 percent. At the same time, sales in other American Outdoor Brand companies also grew. This provides good news at a time when it is under attack by anti-gunners from a variety of angles.
Other Smith & Wesson Issues
During a shareholder call, Smith & Wesson executives stated that a share-holder request for a gun safety report is a political attack taking advantage of the proxy system.
“For proponents, it’s part of a special interest group with an anti-firearms agenda and they are misusing the proxy process to advance their own political agenda and anti-firearms narrative at the expense of our company, our employees and our stockholders,” Chief Executive Officer James Debney said during the call. “Unlike a bona fide investor, this proponent purchased just 200 shares, the bare minimum needed under SEC rules to place an item on the proxy with the sole objective to push an anti-firearms agenda, designed to harm our company, disrupt the local sale of our products and destroy stockholder value. This proponent will gladly sacrifice its investments and yours to achieve its political objectives.”
The Sisters of the Holy Names of Jesus and Mary filed a resolution wanting Smith & Wesson to report on the risks of selling firearms. It also wants the company to take “the first steps towards acceptance of this responsibility.”
According to Debney, the report wouldn’t do anything to help community safety. In fact, the same group made the same request of Ruger investors in May. Shareholders passed the proposal, which requires Ruger present a “risk report” to investors. If the Smith & Wesson resolution passes, the company will have until February to present the report.
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