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

Core Insights - Smith & Wesson Brands, Inc. reported financial results for Q3 of fiscal 2025, indicating a slight revenue shortfall but meeting EPS and EBITDAS expectations due to lower operating expenses and a flexible manufacturing model [1][3][6] - The company anticipates a steady firearms market and believes it is well-positioned for continued success, driven by innovation and disciplined cost control [3][6] - Full-year revenue is expected to be 5-10% lower than fiscal 2024, reflecting lower demand for core products [3][6] Financial Performance - Q3 net sales were $115.9 million, a decrease of $21.6 million, or 15.7%, compared to the same quarter last year [6][12] - Gross margin for Q3 was 24.1%, down from 28.7% in the comparable quarter last year [6][12] - GAAP net income was $1.7 million, or $0.04 per diluted share, compared to $7.9 million, or $0.17 per diluted share, for the same quarter last year [6][12] - Non-GAAP net income was $962 thousand, or $0.02 per diluted share, down from $8.7 million, or $0.19 per diluted share, in the prior year [6][12] Operational Highlights - New products accounted for over 41% of sales in the quarter, indicating strong performance in this category [3][6] - The company has authorized a quarterly dividend of $0.13 per share, to be paid on April 3, 2025 [3][6] Cash Flow and Balance Sheet - Cash and cash equivalents decreased to $26.7 million from $60.8 million at the end of the previous fiscal year [10][14] - Total current assets increased to $298.7 million, while total liabilities rose to $214.8 million [10][11] - Free cash flow for the nine months ended January 31, 2025, was $(62.4) million, compared to $(22.2) million for the same period last year [19]