Smith and Wesson Sales Down 4 Percent
Smith Wesson Brands (NASDAQ:SWBI), a manufacturer of firearms and related products, released its results for the first quarter of fiscal 2026 on September 4, 2025. Revenue (GAAP) declined by 3.7% year-over-year to $85.1 million, compared to management's earlier comment that the first quarter could be approximately 10% lower than last year. However, margins tightened as gross margin fell to 26.0% (Non-GAAP), down from 29.3% in Q1 FY2025. Adjusted EBITDAS margin also compressed to 9.5% from 11.8%. Both GAAP and Non-GAAP diluted earnings per share (EPS) showed a larger loss than the prior year, at $(0.08) per share compared to a loss of $(0.04) and $(0.02), respectively. The company maintained its $0.13 per share dividend. Overall, the period showed better top-line resilience than feared, but ongoing margin compression and losses highlighted persistent market and cost pressures.
Smith Wesson Brands is one of the United States' oldest and most recognized manufacturers of firearms. Its core business is the design, production, and sale of handguns, long guns (like rifles), and related accessories marketed under the Smith Wesson and Gemtech brands. The company sells primarily to shooting sports enthusiasts, law enforcement agencies, professional users, and specialty retailers.
In recent years, Smith Wesson has focused on several priorities. Product innovation has been central, with new product development and enhancements to core lines such as Performance Center products and modern sporting rifles. Managing regulatory compliance, improving operational efficiency, leveraging its well-known brand, and maintaining disciplined capital allocation have also shaped its strategy. Success depends on introducing compelling new firearms and accessories, smoothly navigating strict regulations, optimizing manufacturing and supply chains, and effectively deploying capital stewardship including dividends and periodic buybacks.
Source Fool.com
