Q1 2025 Smith & Wesson Brands Inc Earnings Call Transcript
Key Points
- Smith & Wesson Brands Inc (SWBI) demonstrated resilience with a flexible manufacturing model, maintaining profitability despite softer-than-expected firearms demand.
- Gross margins improved by 80 basis points year-over-year, reflecting higher fixed cost absorption and efficiencies in Tennessee operations.
- The introduction of new products, such as the Bodyguard 2.0 and the 1854 Lever-Action Rifle, has been successful, contributing significantly to sales.
- The company maintained a solid cadence of new product introductions, with new products accounting for over 41% of sales in the first quarter.
- Smith & Wesson Brands Inc (SWBI) accelerated its share buyback program, repurchasing nearly 871,000 shares for $13 million and authorizing a new $50 million buyback program.
- Net sales for the first quarter were $88.3 million, down 22.7% from the prior year comparable quarter.
- Handgun ASPs declined by over 9% due to promotional activities and a shift to lower-priced products.
- The company reported a net loss of $2.1 million, or $0.05 per share, primarily due to lower revenue and increased interest expenses.
- Inventory levels increased by nearly $30 million, reflecting softer market conditions and higher internal inventory.
- Operating expenses remained flat year-over-year, but increased costs in new product development, compensation, and legal expenses were noted.
Good day, everyone, and welcome to Smith & Wesson Brands, Inc. first-quarter fiscal 2025 financial results conference call. This call is being recorded. At this time, I would like to turn the call over to Kevin Maxwell, Smith & Wessonâs 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, objectives, 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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