Smith & Wesson Holding Corp. expects mid- to high single-digit growth under a Trump presidency in what the company’s CEO termed a “normalized” environment free of any events that could trigger consumer buying.
“We see the demographics of the firearms consumer are very different now to what they were under the Bush administration, and that’s exciting,” CEO James Debney said in a second-quarter earnings call yesterday.
Today’s consumers are younger and from more urban areas, and include many more women taking an interest in the sport of shooting, according to Debney. First-time buyers have increased significantly, and a very strong demand for concealed-carry firearms continues, he said.
The Springfield company reported net sales grew 63 percent from the prior year to $233.5 million, beating analysts’ expectations for $227.6 million. It posted net income of $32.5 million, or 57 cents per share, compared to Wall Street’s forecast for 56 cents.
“In our firearms segment, we believe higher revenue was driven by strong consumer demand as reflected in adjusted background checks from the National Instant Criminal Background Check System, as well as our own market share gains,” Debney said.
Smith & Wesson’s results for Black Friday, which will be reflected in third-quarter earnings, were very encouraging, beating last year’s performance slightly, according to Debney.
“As we’ve said for a few years now, it’s obvious that firearms have become mainstream in terms of entering the basket of goods that consumers expect to see a deal on when they’re shopping at retail on Black Friday,” he said.
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