Smith & Wesson Brands (NASDAQ:SWBI) reports sales increased 32.9% in FQ4.
Gross margin for the quarter was 37.5% vs. 36.1% a year ago after the change related to the timing of federal excise tax within the company's firearms segment was excluded.
SWBI execs point to strong consumer demand for firearms and note the company got a boost from strong consumer acceptance of the M&P9 Shield EZ pistol. "In addition, our internal inventory levels allowed us to address the sudden increase in customer demand for our firearms in the quarter, while we simultaneously engaged our component outsourcing partners and reactivated our flexible manufacturing model in preparation for ongoing strength in the consumer market for firearms," updates co-CEO Mark Smith. Despite the pandemic, Smith & Wesson says it saw consistent point-of-sale growth for hunting, shooting, and cutlery products with brick-and-mortar customers, as well as strong growth from the newly implemented e-commerce platform.
The company's spinoff of the outdoor products and accessories business is on track for August.
Shares of Smith & Wesson Brands are down 2.08% in AH trading to $18.40 to cut just slightly into the +100% 90-day rally.
