Q3 2025 Smith & Wesson Brands Inc Earnings Call Transcript
Key Points
- Smith & Wesson Brands Inc (SWBI) achieved strong performance in new product sales, with products introduced within the past year accounting for over 41% of sales in the quarter.
- The company maintained solid profitability by leveraging a flexible manufacturing model, despite top-line revenue coming in slightly below target.
- Smith & Wesson Brands Inc (SWBI) gained market share in the handgun category, with shipments declining less than the overall market.
- The introduction of the Bodyguard 2.0 has been successful, driving strong demand and contributing to market share gains.
- The company has a robust pipeline of new products expected to be introduced in the final quarter of FY25 and throughout the next year, positioning it well for future growth.
- Overall net sales for the third quarter were down 15.7% compared to the prior year, reflecting softer consumer demand and persistent inflation.
- Average selling prices (ASPs) for handguns declined by 7.8%, driven by lower-priced products and promotions.
- Long gun shipments declined by 26.7% due to outperformance in the prior-year period and a narrow product offering in the seasonal hunting category.
- Gross margin decreased by 4.6% compared to the prior year, impacted by unfavorable fixed cost absorption and higher promotional costs.
- The company anticipates full-year revenue to decline by 5% to 10% from fiscal 2024, with expectations closer to a 10% decline due to softer demand trends.
Good day, everyone, and welcome to the Smith & Wesson Brands, Inc. third-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 & Wesson General Counsel, who will give us some information about today's call. Please go ahead.
Thank you and good afternoon. Our comments today may contain forward-looking statements. Our use of the words anticipates, 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
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