Financial Performance - Q4 net sales were $140.8 million, a decrease of $18.4 million, or 11.6%, from the comparable quarter last year [5] - Q4 gross margin was 28.8%, compared to 35.5% in the comparable quarter last year [5] - Q4 GAAP net income was $8.6 million, or $0.19 per diluted share, compared to $27.3 million, or $0.59 per diluted share, for the comparable quarter last year [5] - Non-GAAP net income for Q4 was $9.0 million, or $0.20 per diluted share, compared to $22.1 million, or $0.48 per diluted share, for the comparable quarter last year [5] - Full year net sales were $474.7 million, a decrease of $61.2 million, or 11.4%, from the prior fiscal year [5] - Full year gross margin was 26.8%, compared to 29.5% in the prior fiscal year [5] - Full year GAAP net income was $13.4 million, or $0.30 per diluted share, compared to $41.4 million, or $0.89 per diluted share, for the prior fiscal year [5] Management Commentary - The President and CEO noted that the fourth quarter was more difficult than anticipated due to macro-economic and industry trends, with lower sales and production volumes pressuring margins [4] - The Executive Vice President and CFO indicated that persistent inflation, high interest rates, and tariff concerns negatively impacted firearm market conditions [4] Market Outlook - The company expects demand for firearms in fiscal 2026 to be similar to fiscal 2025, subject to economic headwinds such as inflation and tariff-related cost increases [4] - The overall firearms market is seeing consumers being cautious due to macro-economic factors affecting discretionary spending [4] Dividend Announcement - The board of directors has authorized a quarterly dividend of $0.13 per share, payable to stockholders of record on July 7, 2025 [6]

Company Announcement - Smith & Wesson Brands, Inc. has rescheduled its conference call to discuss the fourth quarter and full fiscal 2025 financial and operational results from June 19, 2025, to June 18, 2025 [1] - The conference call and webcast will begin at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) [1] Participation Details - Interested parties in North America can participate by dialing 1-877-704-4453, while those outside North America can dial 1-201-389-0920 [2] - Participants are advised to dial in at least 10 minutes prior to the start of the call [2] - A live and archived webcast will be available on the company's website under the Investor Relations section [2] Company Overview - Smith & Wesson Brands, Inc. is a leader in firearm manufacturing and design, offering a wide range of handgun, long gun, and suppressor products under the Smith & Wesson® and Gemtech® brands [3] - The company also provides forging and machining services to third parties [3]

Core Viewpoint - Smith & Wesson Brands, Inc. is set to release its fourth quarter and full fiscal 2025 financial results on June 19, 2025, 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 handgun, long gun, and suppressor products under the Smith & Wesson® and Gemtech® brands [4] - The company also provides forging and machining services to third parties [4]

Financial Data and Key Metrics Changes - In Q1 2025, net sales were $135.7 million, a slight decrease from $136.8 million in Q1 2024, while diluted earnings per share increased from $0.40 to $0.46 [9][10] - Gross margin improved from 21.5% to 22% due to favorable leveraging of fixed costs despite $800,000 of deferred revenue related to sales promotions [9][10] - Cash and short-term investments totaled $108 million, with a current ratio of 4.6:1 and no debt [10] Business Line Data and Key Metrics Changes - New product sales accounted for $40.7 million, or 31.6% of net firearm sales for the quarter, indicating strong demand for recently launched products [14] - The company maintained flat sales in a declining market, showcasing resilience against industry headwinds [13] Market Data and Key Metrics Changes - Retail firearm unit sales declined 9.6% year-over-year, with revenue down 11.5%, while adjusted NICS checks decreased by 4.2% [12][13] - Despite overall market challenges, the company reported strong demand for specific products, including the RXM pistol and Ruger American Generation two rifles [13][14] Company Strategy and Development Direction - The company plans to increase capital expenditures to exceed $30 million in 2025, focusing on new product introductions and expanding manufacturing capabilities [10][15] - A flexible manufacturing model is being utilized to adjust production based on demand while maintaining quality and cost efficiency [14] - The company aims to leverage collaborations with other industry players to enhance brand presence and product offerings [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the firearms market but expressed confidence in the company's ability to navigate these issues through innovation and operational efficiency [18] - The leadership team is focused on investing in culture, people, and organizational efficiency to maximize shareholder value [18][42] Other Important Information - The company returned $7 million to shareholders through dividends and stock repurchases, maintaining a variable dividend strategy [11] - The leadership transition is seen as an opportunity to reinforce the company's commitment to quality and innovation [5][17] Q&A Session Summary Question: Thoughts on increased capital expenditures and new product launches - Management confirmed plans for a more aggressive pace of new product introductions, aligning capital investments with production capacity [20][22] Question: Impact of RXM product launch on average selling price (ASP) - The RXM launch positively impacted ASP, with expectations for further improvements as production ramps up [31][32] Question: Concerns about margin pressure from tariffs and inflation - Management indicated minimal immediate impact from tariffs due to domestic sourcing and proactive raw material management [34][35] Question: Confidence in expanding capacity amid market uncertainty - The company is confident in its product roadmap and sees opportunities to gain market share despite a challenging environment [36][38]