SPRINGFIELD, Mass. (AP) - Gun maker Smith and Wesson Holding Corporation reports record sales and earnings for the just ended fiscal year.That is some pretty good news. I'll bet a few anti's are having a conniption over this one.
The Springfield-based company reported a nearly 49% increase in sales over the last fiscal year to almost $235 million.
Net income was almost $13 million.
CEO Michael Golden called the results "an incredible year."
The record results were driven by a 50% increase in firearms sales
After posting this I had to go check out the Foolish Forecast on Smith & Wesson:
What management says:I wonder what part their new AR-15 (The M&P 15) played in this increase in sales?
All the chambers have been loaded for Smith & Wesson as it continues its remarkable turnaround. While it seemed difficult to imagine improving on fiscal 2006, which saw revenue rise 27% and profits soar by 67%, this year has been another bull's eye for the legendary gun maker. Over the first nine months of the fiscal year, revenue was up 43% on the strength of a 46% increase in firearms sales. The January acquisition of Thompson Center Arms gives the company immediate firepower in the $1.1 billion longarms segment. Add in new and renewed police contracts, and you're staring down the barrel of a very formidable rival.
President and CEO Michael Golden, who has targeted the turnaround that began in 2004, noted the gun maker has taken aim and delivered on or near the mark. "We have delivered healthy, profitable growth in our core business and have entered all of the major long gun categories within two years of our decision to enter that market."
What management does:
Smith & Wesson has been able to consistently improve margins by keeping expenses in check. Gross and operating margins have been rising at a steady rate, and net margin, while also improving over time, has been subject to more volatility. Branding opportunities have spread the company name to markets that should bolster and expand its reputation -- like sponsoring a NASCAR team that runs at International Speedway (Nasdaq: ISCA) and Speedway Motorsports (NYSE: TRK) -- while introducing its weaponry to new and younger customers.
1 comment:
Good for Smith. I'll never own a firearm equipped with a Hillary-Hole, but continue to wish them well. Disproves the ranting Anti's claiming firearm sales have been declining.
Can't wait to see Ruger and Glock sales numbers.
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