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Apr 30, 2020
Smith & Wesson Q4 2020 Earnings Report
Smith & Wesson Brands experienced significant revenue growth in Q4 2020, driven by strong consumer demand for firearms and e-commerce growth in outdoor products and accessories, while preparing for a spin-off.
Key Takeaways
Smith & Wesson Brands, Inc. reported a strong Q4 2020, marked by a 37% increase in firearms revenue year-over-year and a 2.4% increase in OP&A revenue. The company saw significant growth in e-commerce and direct-to-consumer sales. They are preparing for the spin-off of their Outdoor Products & Accessories business.
Firearms segment revenue increased by 37% year-over-year, driven by strong consumer demand.
Gross margins for the Firearms segment increased due to improved production volumes and price increases.
E-commerce channel grew by 103% compared to the prior year, significantly increasing direct-to-consumer sales.
The company is on track to spin-off its Outdoor Products & Accessories business in August.
Forward Guidance
Due to the upcoming spin-off of the Outdoor Products & Accessories business, Smith & Wesson Brands is not providing forward-looking guidance for the combined company. American Outdoor Brands, Inc. expects to provide guidance after the Form 10 is filed.
Positive Outlook
- Flexible manufacturing strategy in place.
- Increasing capacity to meet the high demand.
- New credit facility will be immediately available after the spin-off.
- Consumers are finding us.
- Very strong quarter.
Challenges Ahead
- No guidance for the combined company.
- Potential delays in spin-off.
- Form 10 will be public in a couple of weeks.
- The private label, we expect that to kind of – after our Q1 in fiscal ‘21, that will kind of remediate itself.
Historical Earnings Impact
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