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Apr 30, 2023

Smith & Wesson Q4 2023 Earnings Report

Smith & Wesson's Q4 2023 financial results were announced, featuring net sales of $144.8 million and EPS of $0.28 per share.

Key Takeaways

Smith & Wesson reported Q4 net sales of $144.8 million, a decrease of 20.1% compared to the same quarter last year. EPS was $0.28, and adjusted EPS was $0.32. The company's gross margin was 29.0%, with an adjusted EBITDAS margin of 20.9%.

Q4 net sales reached $144.8 million, a 20.1% decrease year-over-year.

Gross margin was 29.0%, compared to 39.8% in the prior year's quarter.

GAAP net income was $12.8 million, or $0.28 per diluted share.

Non-GAAP Adjusted EBITDAS was $30.3 million, representing 20.9% of net sales.

Total Revenue
$145M
Previous year: $181M
-20.1%
EPS
$0.32
Previous year: $0.82
-61.0%
Gross Margin
29%
Previous year: 39.8%
-27.1%
Adjusted EBITDAS
$30.3M
Previous year: $57.7M
-47.5%
Gross Profit
$42M
Previous year: $72.2M
-41.9%
Cash and Equivalents
$53.6M
Previous year: $121M
-55.6%
Free Cash Flow
$13M
Previous year: $16.7M
-21.9%
Total Assets
$541M
Previous year: $497M
+8.8%

Smith & Wesson

Smith & Wesson

Forward Guidance

Smith & Wesson anticipates that consumer demand in fiscal year 2024 will resemble that of fiscal year 2023, but expects increased shipments due to reduced inventory levels in the distribution channel during the first half of the previous fiscal year.

Positive Outlook

  • Anticipate an increase in shipments.
  • Inventory in distribution channel continued to decline from January.
  • Relocation nearing final phase.
  • Board authorized $0.12 per share quarterly dividend.
  • Maintaining leadership position at the sales counter with the firearm consumer.

Challenges Ahead

  • Consumer demand to resemble demand in fiscal 2023.
  • Economic factors.
  • Social factors.
  • Political factors.
  • Legislative and regulatory factors.