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Smith & Wesson Stock Sinks as it Says Inflation is Hurting Firearms Sales

December 6, 2024

Smith & Wesson reported a decline in second-quarter adjusted net income as demand for firearms was slowed by inflation.

by Bill McColl
Investopedia

Smith & Wesson Brands (SWBI) shares plunged nearly 20% Friday, a day after it warned that inflation was reducing firearm sales and lowered its guidance.

The gunmaker reported second-quarter fiscal 2025 adjusted net income of $4.8 million, or $0.11 per share, down from $6.5 million, or $0.14 per share, a year ago. Revenue rose 3.8% year-over-year to $129.7 million.1

Chief Executive Officer (CEO) Mark Smith said the results “came in below our expectations as overall demand for firearms normalized late in the quarter,” and that the main reason for that “continued to be inflation.” Smith added that “the consumer cautiousness with discretionary spend that we observed in recent quarters was more pronounced during the second quarter than we anticipated.”

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