Q4 2025 Smith & Wesson Brands Inc Earnings Call Transcript
Key Points
- New products accounted for 44% of sales in the fourth quarter, highlighting strong innovation and competitive differentiation.
- Smith & Wesson Brands Inc (SWBI) gained market share in handguns, with shipments declining less than the overall market.
- The company maintained a strong balance sheet and is comfortable with internal inventory levels.
- Smith & Wesson Brands Inc (SWBI) plans to continue investing in innovation to maintain market share leadership.
- The company generated $40.8 million in cash from operations during the quarter, demonstrating strong cash flow management.
- Net sales for the fourth quarter were $140.8 million, down 11.6% from the prior year, reflecting challenging market conditions.
- Gross margin decreased by 6.7 percentage points compared to the prior year, due to lower production volumes and pricing pressures.
- Net income for the fourth quarter was $8.6 million, significantly lower than the prior year's $27.3 million.
- Average selling prices trended lower year-over-year, with a 4.5% decline in Q4, impacting profitability.
- The company anticipates continued economic headwinds, such as inflation and tariffs, which may pressure demand and margins in fiscal 2026.
Good day, everyone, and welcome to Smith & Wesson Brands, Inc fourth quarter and full 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's General Counsel, who will give us some information about today's call.
Thank you, and good afternoon. Our comments today may contain forward-looking statements. Our use of the words anticipate, 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 subject to
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