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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.
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
Historical Earnings Impact
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Avg. Return Before/After Earnings
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