Smith & Wesson sales double again as gun demand remains searing

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Smith & Wesson brands (NASDAQ: SWBI) sales doubled in its fiscal third quarter, the third consecutive month in which sales increased by more than 100%.

It’s an unprecedented market for the industry, and the FBI’s background checks on potential gun buyers are well in advance the scorching pace set last year, which was the all-time record for such testing.

There does not appear to be a slowdown in demand for firearms, as concern for stricter gun control legislation is driving sales up.

Image source: Getty Images.

A record pace

Smith & Wesson reported net sales of $ 257.6 million, a 102% increase from $ 127.4 million a year ago. This is actually a slowdown in the growth rate posted in each quarter of fiscal 2021, with first quarter sales jumping 125% and second quarter sales by 119%.

President and CEO Mark Smith said: “For the third time in a row, [employees] achieved a record quarter “for the firearms maker, an achievement achieved during an ongoing global pandemic.

The string of record results also saw the firearms maker generate a net profit of $ 49 million, up from $ 343,000 last year; provide $ 25 million in start-up capital for American exterior brands when that created the outdoor equipment and accessories business; repay the $ 25 million balance of its revolving loan; and left him with zero debt and $ 55 million in cash.

Smith & Wesson also began paying a dividend of $ 0.05 per share this fiscal year, which is currently earning a modest 1.3% per year.

Smith also noted that data from the National Shooting Sports Foundation indicates some 8.4 million Americans bought their first gun last year, with women and minorities accounting for over 40% of all purchases, which bodes well for the industry.

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