Shares of Smith & Wesson fall following a report indicating a drop in demand for firearms.

The Springfield, Mass.-based company said its profit tumbled from a year earlier in what it described as a “challenging” July fiscal quarter.

US consumer gun sales surge in 2020 and 2021 amid the coronavirus pandemic and concerns over civil unrest over the presidential election and police killings of unarmed black people.

“As expected, our first quarter results reflected a return to a normal demand pattern at the retail counter for firearms, combined with temporary headwinds from the inventory correction within the channel,” said Mark Smith. , managing director of Smith & Wesson, in a press release.

Smith & Wesson’s report echoes the quarterly results of its rival Sturm, Ruger & Company, published on August 3. Sturm, Ruger’s stock has fallen about 20% since its report.

During Thursday’s first trading session, Smith & Wesson was down 1%.

Factoring in its further decline after the closing bell, Smith & Wesson is down more than 40% since Dec. pandemic.

For its July fiscal quarter, Smith & Wesson reported GAAP net income of $3.3 million, down from $76.9 million a year earlier. Net sales fell 69% to $84.4 million.

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