Smith & Wesson Brands, Inc. Reports First Quarter Fiscal 2025 Financial Results

Core Viewpoint - Smith & Wesson Brands, Inc. reported a decline in net sales for Q1 fiscal 2025, but the company remains optimistic about future growth due to a rebound in demand and new product launches [1][4]. Financial Performance - Q1 net sales were $88.3 million, a decrease of$25.9 million, or 22.7%, compared to the same quarter last year [2][3]. - Gross margin improved to 27.4% from 26.6% in the comparable quarter last year [2]. - The company reported a GAAP net loss of $2.1 million, or$0.05 per share, compared to a net income of $3.1 million, or$0.07 per diluted share, for the same quarter last year [2][3]. - Non-GAAP net loss was $1.0 million, or$0.02 per share, compared to non-GAAP net income of $6.1 million, or$0.13 per diluted share, for the same quarter last year [3][16]. - Adjusted EBITDAS was $9.9 million, representing an 11.2$17.5 million, or 15.3% margin, in the same quarter last year [3][18]. Strategic Initiatives - The Board of Directors authorized a new $50 million stock repurchase program to be executed over the next twelve months [1][4]. - The company plans to pay a quarterly dividend of$0.13 per share on October 3, 2024, to stockholders of record on September 19, 2024 [4][7]. Market Outlook - The CEO noted that while firearms demand was softer than expected in the summer, there are signs of recovery as the company enters the busy fall season [4]. - The launch of the Bodyguard 2.0 conceal carry pistol has exceeded expectations, contributing to a positive outlook for future sales [4]. - The CFO expressed confidence that Q2 sales will significantly grow compared to Q1, with full-year revenue expected to increase in the mid-to-high single digits compared to fiscal 2024 [4].