Q4 2024 Smith & Wesson Brands Inc Earnings Call Transcript
Key Points
- Smith & Wesson Brands Inc (SWBI) reported a 10% increase in Q4 top-line revenue compared to the previous year, driven by unit growth in both handguns and long guns.
- Full-year revenue was up 12% year-on-year, with unit shipments increasing by 13%, outpacing the market where NICS was down by 5.4%.
- The company launched over 100 new products in fiscal 2024, with new product sales accounting for over 27% of total revenue.
- Smith & Wesson Brands Inc (SWBI) generated more than $106 million in cash from operations, ending the year with over $60 million in cash on hand and only $40 million in debt.
- The successful launch of the 1854 lever-action rifle created a new whitespace opportunity, contributing significantly to long gun ASPs, which improved by nearly 11%.
- Operating expenses for Q4 were $31.1 million, $7 million higher than the prior year, due to increased profit-related compensation costs and legal expenses.
- The company anticipates a much more competitive marketplace throughout the traditionally slower summer months, impacting consumer discretionary spending.
- Handgun ASPs declined by less than 2% compared to the prior-year quarter, driven by the introduction of the entry-level priced SD9 2.0 millimeter.
- Smith & Wesson Brands Inc (SWBI) expects Q1 fiscal 2025 revenue to be down approximately 10% from the prior-year quarter in terms of units and dollars.
- Margins are expected to stabilize in the low 30s for the full year, an improvement over fiscal 2024, but still impacted by the full-year costs of operating the new Tennessee facility and one-time costs associated with facility consolidations.
Good day, everyone, and welcome to Smith & Wesson Brands, Inc., fourth quarter and full fiscal 2024 financial results conference call. This call is being recorded. At this time, I would like to turn the call over to Kevin Maxwell, Smith & Wesson's General Counsel, who will give us some information about today's call.
Thank you, and good afternoon. Our comments today may contain forward-looking statements. Our use of the words anticipate, project, estimate, expect, intend, believe, and other similar expressions are intended to identify forward-looking statements. Forward-looking statements may also include statements on topics such as our product development, objective, strategies, market share, demand, consumer preferences, inventory conditions for our products, growth opportunities and trends, and industry conditions in general.
Forward-looking statements represent our current judgment about the future and are subject to
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