Joe Tartaro, Executive Editor
by Joseph P. Tartaro | Executive Editor
External forces and public reaction to events such as the most recent mass shootings linked to terrorism in as in Nashville, TN, and most recently San Bernardino, CA, may be driving the upswing in firearms commerce.
The Obama administration’s push for more gun control and further restrictive new gun controls driven largely by the Democrats’ presidential candidates may be part of it as well, but public has realized that so far that campaign has failed to pass any significant new firearm-related legislation.
As evidence, the Outdoorhub.com and Bloomberg News reported in early December that investors are flocking to one of America’s largest gunmakers after Smith & Wesson shattered expectations in its quarterly report on Dec. 8. The day before, Smith & Wesson’s shares rose 7.6% to $20.44, marking the company’s highest closing price since the same period in 2007.
According to the report, Smith & Wesson’s net sales for the second quarter were $143.2 million, an increase of 32.1% over the second quarter last year. The company’s firearm division accounted for $124.9 million and saw a 15.2% increase, while its accessories division netted $18.4 million and increased by 24.6% over last year.
“Higher revenue in our firearms division was driven by increased orders for our Smith & Wesson SDVE polymer pistols, M&P Shield and M&P Bodyguard polymer pistols, and our long guns, especially our Thompson/Center Venture bolt-action rifles,” said Smith & Wesson Holding Corporation CEO James Debney.
“Our accessories division, which was established less than one year ago, also continued to deliver excellent results, with double-digit, year-over-year revenue growth and gross margins that came in above the year-ago quarter.”
The company reported that its profits had nearly tripled in the last quarter, earning a net profit of $14.2 million compared to the $5.2 million last year.
“There will be a sustained uptick in gun sales, not necessarily because of the potential laws, but because people are worried about these actual events and being defenseless,” Christopher Krueger, an analyst at Lake Street Capital Markets, told Bloomberg. “Most people know there probably won’t be any meaningful laws passed that would stop them from buying what they want.”
In other industry developments, Ti Outdoors, a leader in state-of-the-art simulated firearms and archery shooting systems, announced on Nov. 23 that its partnership with Gemini Southern is an effort to accelerate growth. Gemini Southern retains an ownership position in Ti Outdoors and will provide key services to Ti Outdoors as it begins escalating its installations over the next three years.
Ti Outdoors was created by the founder of Ti Training, Greg Otte, whom, along with president and CEO J Dart and his team. They have developed state-of-the-art technology and a powerful revenue sharing business model for range owners and firearms and archery retailers. Ti Outdoors’ simulated firearm and archery systems enable retailers to generate revenue from shooting enthusiasts as they engage in high tech simulated experiences. Systems are being installed in ranges and retailers nationwide and offer a cost efficient and technologically enhanced way for shooters to practice their shooting skills and compete on local and national levels. The system also complements retailers’ existing concealed carry and other firearms training classes by offering an indoor simulated experience.
Finally, the surge in consumer interest in suppressors has caused XS Sight Systems’ to develop an all-new XS® 1911 Novak Suppressor Height Express Sights. These are made for fast sight acquisition in all light conditions, feature a low profile, and a snag-free design that can be easily installed.
“The XS Express sights have been the flagship product for us,” said Tanya Gorin, Commercial Sales Manager for XS Sight Systems. “These new sights bring the same Express System advantages, but are designed specifically to accommodate a suppressor.” “The 1911 Novak Suppressor Height Sights allow shooters to raise the sight line over a suppressor for an unobstructed view of the target.”
