Smith & Wesson under the gun to rid selves of inventory

The Great Gun Grab of 2013 is gone — and the Great Gun Glut of 2014 is inflicting pain.

Smith & Wesson warned that sales and profits for the current quarter will sorely miss its earlier forecasts as demand for firearms plummets following last year's boom.

Smith & Wesson's rifle sales dropped by more than 50 percent in the most recent quarter, fueling an overall sales decline of 22 percent, the company said. Handgun sales were down 15 percent.

Last year, demand surged following the late-2012 shootings in Sandy Hook, which spurred panic buying from gun enthusiasts fearing tightened regulations by the Obama administration.

In response, manufacturers led by Smith & Wesson and Sturm Ruger made big bets on 2014 business that never panned out.

CEO James Debney said the company is scrambling to slash inventory as the gun market returns to "a more normalized environment."

While Smith & Wesson cut its inventory 18 percent in the most recent quarter, competitors' excess inventory "will continue to reduce the open-to-buy for distributors and retailers for our next quarter," he said.

The massive stockpile has hammered Smith & Wesson's margins, which fell to 32.1 percent from 41.6 percent as the manufacturer was forced to take steep markdowns on unsold weapons.

For the current quarter, Smith & Wesson said it now expects earnings of nine cents to 11 cents a share on revenue of $113 million to $118 million. Analysts had expected earnings of 20 cents a share on revenue of $130 million.

Anda sedang membaca artikel tentang

Smith & Wesson under the gun to rid selves of inventory

Dengan url

http://bahayaprostat.blogspot.com/2014/12/smith-wesson-under-gun-to-rid-selves-of.html

Anda boleh menyebar luaskannya atau mengcopy paste-nya

Smith & Wesson under the gun to rid selves of inventory

namun jangan lupa untuk meletakkan link

Smith & Wesson under the gun to rid selves of inventory

sebagai sumbernya