Smith & Wesson Brands Inc
NASDAQ:SWBI
Smith & Wesson Brands Inc
Smith & Wesson Brands, Inc. is a holding company, which engages in the manufacture, design, and provision of firearms. The company is headquartered in Springfield, Massachusetts and currently employs 2,240 full-time employees. The firm manufactures a range of handguns (including revolvers and pistols), long guns (including modern sporting rifles, bolt action rifles, and muzzleloaders), handcuffs, suppressors, and other firearm related products for sale to a wide variety of customers, including firearm enthusiasts, collectors, hunters, sportsmen, competitive shooters, individuals desiring home and personal protection, law enforcement and security agencies and officers, and military agencies in the United States and throughout the world. The firm sells its products under the Smith & Wesson, M&P, Thompson/Center Arms, and Gemtech brands.
Smith & Wesson Brands, Inc. is a holding company, which engages in the manufacture, design, and provision of firearms. The company is headquartered in Springfield, Massachusetts and currently employs 2,240 full-time employees. The firm manufactures a range of handguns (including revolvers and pistols), long guns (including modern sporting rifles, bolt action rifles, and muzzleloaders), handcuffs, suppressors, and other firearm related products for sale to a wide variety of customers, including firearm enthusiasts, collectors, hunters, sportsmen, competitive shooters, individuals desiring home and personal protection, law enforcement and security agencies and officers, and military agencies in the United States and throughout the world. The firm sells its products under the Smith & Wesson, M&P, Thompson/Center Arms, and Gemtech brands.
Sales: Net sales of $135.7 million, up 17.1% year‑over‑year, driven by new handgun products.
Handguns: Handgun unit shipments into the sporting goods channel up 28% with ASPs > $419 (up 5.2% YoY), indicating market share gains.
Long guns: Long gun shipments into the sporting goods channel down 25% and ASPs $535 (down ~11% YoY) largely due to prior‑year channel fill of higher‑priced product.
Profitability: Gross margin 26.2% (up 210 bps YoY); net income $3.8 million and GAAP EPS $0.08; operating cash from operations of $20.5 million vs. cash used $9.8 million prior year.
Balance sheet: Inventory $175 million (down $23 million YoY); debt $75 million at quarter end and subsequently reduced by $20 million to $55 million; cash & investments $23.5 million.
Guidance: Q4 sales expected to be up 10%–12% vs. Q4 2025; gross margin expected to increase several percentage points over Q3 and 1–2 points vs. last year’s Q4; Q4 operating expenses likely ~10% higher vs. prior year Q4.
Strategic momentum: Management highlighted strong product innovation (new products = 44% of handgun shipments), improving law‑enforcement pipeline via the Smith & Wesson Academy, and selective pricing (a ~3% January 1 price increase) that passed through without pushback.
