Overview

* Smith & Wesson fiscal Q1 sales fall 3.7% but beat analyst expectations

* Gross margin declines to 25.9% from 27.4% year-over-year

* Company reports GAAP net loss of $0.08/share, wider than last year

Outlook

* Company anticipates Q2 sales 3-5% below Q2 fiscal 2025

Result Drivers

* NEW PRODUCTS - New products accounted for 37.3% of sales, demonstrating the company's focus on innovation

* INVENTORY DECLINE - Distributor inventory declined over 10% from the prior quarter, indicating positive retail sell-through

* MARKET PRESENCE - Strong market share across all firearm categories contributed to better-than-expected results

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Sales Beat $85.10 $79.20

mln mln (3

Analysts

)

Q1 Gross 25.9%

Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the aerospace & defense peer group is "buy"

* Wall Street's median 12-month price target for Smith & Wesson Brands Inc ( SWBI ) is $11.00, about 27.1% above its September 3 closing price of $8.02

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)