On Aug. 30, American Outdoor Brands (AOB)—parent company of Smith & Wesson—reported, “Quarterly net sales were $138.8 million compared with $129.0 million for the first quarter last year, an increase of 7.6 percent....Gross margin for the quarter was 37.8 percent compared with 31.5 percent for the first quarter last year. “
Despite NICS figures indicating the lethargic “new norm” in gun sales continued through the summer, that’s where the NASDAQ-listed company’s performance shined. “In our Firearms segment, we introduced several new products and extensions under our Performance Center, M&P, and Thompson/Center brands,” explained AOB President and CEO James Debney. “New products, which we define as products launched within the past twelve months, represented 28.5 percent of our firearm revenue and included strong sales of our M&P Shield 380 EZ pistol, which we launched in February. That pistol has been extremely well received by our consumers and continues to gain momentum. Our Outdoor Products & Accessories segment generated approximately 25 percent of our total revenue in the quarter, and Crimson Trace further expanded its product offerings in this segment with the launch of several new rail mounted lights.”
Stock in the company rose in value from $9.77 to $13.27 the day the quarterly report became public. The positive was also felt by owners of New York Stock Exchange-traded Ruger shares, with their valuation increasing from $60.95 to $64.05 the same day.
Part of American Outdoor Brands success, according to Debney’s statement, is due to offering gun packages with optics or storage systems. “These programs demonstrate how our new divisions within the company work to support our firearms divisions. We bundled our firearms with a variety of accessories into unique packages that are made possible by the wide variety of products we offer across our shooting, hunting and rugged outdoor business.”