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Smith & Wesson posts record profit on handgun surge

Wall Street Journal US Business •
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Smith & Wesson Brands posted a profit of $16.2 million, or $0.36 per share, more than double the year‑ago earnings of $8.6 million. Earnings also came in at 36 cents a share. Revenue jumped 27 % to $178.4 million, driven by a surge in handgun shipments that represent over 80 % of units sold. The results lifted the stock, sending shares up 7 % in after‑hours trading.

Chief financial officer Deana McPherson said handgun shipments accounted for more than 80 % of total units, underscoring the product mix’s influence on earnings. She noted that consumer interest remains strong despite ongoing regulatory debates, and the company projects continued demand throughout the current fiscal year. Investors will watch whether the momentum holds as further legislation looms in the U.S. market.

The upbeat earnings lift Smith & Wesson into a stronger position among U.S. firearms manufacturers, a segment that has seen mixed results as retailers grapple with inventory pressure. With shares rallying around 7 % after the release, the data may prompt analysts to revise earnings forecasts for peers such as Sturm, Ruger & Co. and focus on handgun‑centric growth strategies now.