Core Viewpoint - Smith & Wesson Brands, Inc. announces the retirement of Sue Cupero, Vice President of Sales, after over 40 years of service, effective May 2025 [1][2][3] Company Overview - Smith & Wesson Brands, Inc. is a leader in firearm manufacturing and design, offering a wide range of products including handguns, long guns, and suppressors under the Smith & Wesson® and Gemtech® brands [5] - The company also provides manufacturing services such as forging, machining, and precision plastic injection molding [5] Leadership Transition - Sue Cupero has been instrumental in shaping the company's sales strategies and expanding its market presence since joining in 1979 [2][3] - The company will begin the search for her replacement immediately, aiming for a smooth transition of responsibilities [4]

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Smith & Wesson Brands, Inc. (NASDAQ:SWBI) Q2 2025 Results Conference Call December 5, 2024 5:00 PM ET Company Participants Kevin Maxwell - General Counsel Mark Smith - President and Chief Executive Officer Deana McPherson - Chief Financial Officer Conference Call Participants Matthew Raab - Craig-Hallum Rommel Dionisio - Aegis Capital Mark Smith - Lake Street Capital Markets Operator Good day, everyone, and welcome to Smith & Wesson Brands' Second Quarter Fiscal 2025 Financial Results Conference Call. This ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 31, 2024 Commission File No. 001-31552 Smith & Wesson Brands, Inc. (Exact name of registrant as specified in its charter) Nevada 87-0543688 (State or other jurisdiction of incorporation or organization) (I.R.S. ...

Exhibit 99.1 Smith & Wesson Brands, Inc. Reports Second Quarter Fiscal 2025 Financial Results • Q2 Net Sales of $129.7 Million; Sequential Increase of 46.8% • Q2 Gross Margin of 26.6%; Non-GAAP Gross Margin of 27.1% • Q2 EPS of $0.09/Share; Q2 Adjusted EPS of $0.11/Share • Q2 Adjusted EBITDAS Margin of 14.3% MARYVILLE, Tenn., December 5, 2024 – Smith & Wesson Brands, Inc. (NASDAQ Global Select: SWBI), a U.S.-based leader in firearm manufacturing and design, today announced financial results for the second q ...

Core Insights - Smith & Wesson Brands, Inc. reported Q2 fiscal 2025 net sales of $129.7 million, reflecting a sequential increase of 46.8% and a year-over-year increase of 3.8% [2][5] - The company experienced a gross margin of 26.6%, up from 25.4% in the same quarter last year, and a non-GAAP gross margin of 27.1% [3][4] - The adjusted EPS for Q2 was $0.11 per share, while GAAP EPS was $0.09 per share [4][12] Financial Performance - Q2 net sales were $129.7 million, an increase of $4.7 million (3.8%) year-over-year and $41.3 million (46.8%) sequentially [2] - Gross profit for Q2 was $34.5 million, with a gross margin of 26.6% compared to 25.4% in the prior year [3][12] - GAAP net income was $4.1 million, or $0.09 per diluted share, compared to $2.5 million, or $0.05 per diluted share, in the same quarter last year [3][12] - Non-GAAP net income was $4.8 million, or $0.11 per diluted share, down from $6.5 million, or $0.14 per diluted share, in the prior year [4] Operational Insights - The company noted that overall demand for firearms normalized late in the quarter, primarily due to inflation and consumer cautiousness regarding discretionary spending [5] - New products accounted for 44% of sales during the quarter, indicating a strong innovation pipeline [5] - The company has authorized a new $50 million share repurchase program and signed a new unsecured $175 million line of credit, increasing total available borrowings by $75 million [5] Future Outlook - The company has reduced its expectations for the second half of fiscal 2025, anticipating a top line approximately 10-15% lower than fiscal 2024 [5] - The management remains focused on maintaining profitability and a strong balance sheet while navigating the challenging demand environment [5]

Core Viewpoint - Smith & Wesson Brands, Inc. is set to release its second quarter fiscal 2025 financial results on December 5, 2024, after market close [1] Group 1: Financial Results Announcement - The financial results will be discussed in a conference call and webcast on the same day, featuring key executives including the President and CEO, Mark Smith, and CFO, Deana McPherson [2] - The conference call is scheduled to begin at 5:00 p.m. Eastern Time [2] Group 2: Participation Details - Interested parties in North America can join the call by dialing 1-877-704-4453, while international participants can call 1-201-389-0920 [3] - Participants are advised to dial in at least 10 minutes prior to the start of the call [3] Group 3: Company Overview - Smith & Wesson Brands, Inc. is a leader in firearm manufacturing and design, offering a wide range of products including handguns, long guns, and suppressors under the Smith & Wesson® and Gemtech® brands [4] - The company also provides manufacturing services such as forging, machining, and precision plastic injection molding [4]

It is time to return to the land of Americana. There are few brands that are more iconically American than Smith & Wesson Brands (NASDAQ: SWBI ). REITer's Digest is a discussion forum for my thoughts on investments. I spent more than ten years working in the real estate industry, including an S&P500 REIT and a Big Four consulting group. I am light-hearted, openminded, and a student of the game. Investing is not for the faint of heart and we're in this together... Analyst's Disclosure: I/we have no stock, op ...

Financial Data and Key Metrics Changes - Net sales for Q1 2025 were $88.3 million, down $25.9 million or 22.7% compared to the prior year [13] - Gross margin improved to 27.4%, up 0.8% from the same quarter last year, driven by increased production absorption and lower relocation costs [14] - Operating expenses were flat at $26.1 million compared to the prior year, but increased when excluding a prior year impairment [15] - The company reported a net loss of $2.1 million or $0.05 loss per share, with a non-GAAP loss per share of $0.02 [15] Business Line Data and Key Metrics Changes - ASPs for long guns increased nearly 32% year-over-year, primarily driven by the success of the 1854 lever action rifle [7] - Handgun ASPs decreased over 9% due to promotional activities and a shift towards lower-priced products [7] - New product introductions accounted for over 41% of sales in Q1, indicating strong performance in the new product portfolio [8] Market Data and Key Metrics Changes - Adjusted NICS was down 3% year-over-year, although there was a 4% increase in July, mainly driven by the hunting category [6] - Channel inventory remained stable, with overall inventory about 12% higher than last year but nearly 30% below two years ago [19] Company Strategy and Development Direction - The company aims to grow sales and earnings over fiscal 2024, despite a challenging environment [5] - A new $50 million share repurchase program was authorized to enhance shareholder value [11][18] - The company is focusing on innovation and operational excellence, with significant capacity expansion planned for popular new products [9][12] Management's Comments on Operating Environment and Future Outlook - Management noted that firearms demand was softer than anticipated but expected a rebound as the fall season approaches [5] - The company remains confident in achieving mid to high single-digit revenue growth for the full year compared to fiscal 2024 [19] - Management highlighted improved foot traffic in August, indicating a potential recovery in demand [19] Other Important Information - Cash used in operations was $30.8 million, compared to cash generated of $40.6 million in the prior year [16] - The company expects to achieve low 30s gross margins for the full year due to increased operating days in the second half [19] Q&A Session Summary Question: Inventory management and confidence in Q2 - Management indicated that the majority of the inventory increase was in finished goods and expressed confidence in moving inventory in Q2 due to strong August performance [21] Question: ASP increase in long guns - The increase in long gun ASPs was primarily driven by the 1854 model, with expectations for normalization in the second half of the year [22] Question: Competitive environment and pricing strategies - Management noted that promotional activity is expected to continue but is not anticipated to be as aggressive as during the summer [23] Question: Demand for different product categories - The Bodyguard product line has been well received, fitting into a barbell strategy alongside higher-end products like the 1854 [24] Question: Revenue outlook and growth confidence - Management expressed confidence in achieving mid to high single-digit growth, citing historical seasonal patterns and increased capacity coming online [27][29]

Financial Performance - Net sales for the three months ended July 31, 2024, were $88.3 million, a decrease of $25.9 million, or 22.7%, compared to the same quarter last year[62] - The company reported a net loss of $2.1 million, or $0.05 per share, compared to net income of $3.1 million, or $0.07 per diluted share, in the prior year[62] - Operating loss for the quarter was $1.9 million, a decrease of $6.2 million from the prior year, resulting in an operating margin of -2.1%[69] Sales Performance - Handgun sales decreased by $32.8 million, or 38.1%, primarily due to lower consumer demand, despite new product shipments representing 36.1% of handgun sales[64] - Long gun sales increased by $5.9 million, or 31.6%, driven by new product shipments that accounted for 70.0% of long gun sales[65] Gross Margin and Expenses - Gross margin improved to 27.4% from 26.6% in the comparable quarter last year, attributed to favorable fixed-cost absorption and a price increase[66] - Research and development expenses rose by $716,000, or 39.8%, due to higher materials and testing costs associated with new product development[68] Cash Flow and Capital Expenditures - Cash used in operating activities was $30.8 million, significantly impacted by a $29.3 million increase in inventory[75] - The company expects to spend between $25 million and $30 million on capital expenditures in fiscal 2025[76] - Cash provided by financing activities was $10.2 million, primarily from $30 million in borrowings under the revolving line of credit[77] Debt and Financing - As of July 31, 2024, the company had $70.0 million of borrowings outstanding on the Revolving Line, bearing interest at an average rate of 7.19%[80] - The Missouri Lease amounts to $46.2 million with an effective interest rate of approximately 5.0%, payable in 240 monthly installments through fiscal 2039[78] - The company has an option to increase the Revolving Line by an aggregate amount not exceeding $50.0 million, subject to certain terms and conditions[79] - The credit agreement includes financial covenants related to maintaining maximum leverage and minimum debt service coverage, with compliance as of July 31, 2024[80] Shareholder Returns - The company repurchased 870,669 shares of common stock for $12.9 million during the three months ended July 31, 2024[81] - A regular quarterly dividend of $0.13 per share was authorized for stockholders, payable on October 3, 2024[81] Liquidity and Capital Resources - As of July 31, 2024, the company had $35.5 million in cash and cash equivalents on hand, indicating adequate capital resources for at least the next 12 months[83] - The company may face limitations on capital requirements due to factors such as net sales and product development spending[82] Lease Agreements - The company recognized $878,000 of related income from the Missouri Lease during the three months ended July 31, 2024[78] - The Missouri Sublease was terminated as of January 1, 2024, following an amendment in July 2022 that increased the subleased space to 64.7% of the facility[78]