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Oct 31, 2022
Smith & Wesson Q2 2023 Earnings Report
Reported a decrease in net sales compared to the previous year but an increase compared to pre-pandemic levels, while maintaining strong profitability.
Key Takeaways
Smith & Wesson Brands, Inc. reported Q2 fiscal year 2023 financial results, with net sales of $121.0 million. The company's gross margin was 32.4%, and EPS was $0.21 per share. Despite a decrease in net sales compared to the previous year, the company's profitability remained strong.
Net sales were $121.0 million, a decrease of 47.5% from the comparable quarter last year.
Gross margin was 32.4%, compared to 44.3% in the comparable quarter last year.
GAAP net income was $9.6 million, or $0.21 per diluted share, compared to $50.9 million, or $1.05 per diluted share, for the comparable quarter last year.
Non-GAAP Adjusted EBITDAS was $25.6 million, or 21.1% of net sales, compared with $80.4 million, or 34.9% of net sales, for the comparable quarter last year.
Smith & Wesson
Smith & Wesson
Forward Guidance
The company expects to remain highly profitable and continue delivering on its commitments to customers, employees, and stockholders well into the future.
Positive Outlook
- The company has made significant progress in creating a highly adaptive and robust business model.
- The company consistently delivers strong profitability, regardless of market conditions.
- The company's current quarter results reflected a significant increase in profitability compared to the second quarter of fiscal 2020.
- The company remains focused on managing the business for long-term profitability.
- The company remains focused on market share performance and capital returned to stockholders.
Challenges Ahead
- Firearm demand continuing to normalize.
- Consumer demand for firearms was significantly down from a year earlier.
- Broader consumer slowdown driven by persistently high inflation
- Beginning of the winter heating season across the northern half of the country
- Rising interest rates.