It's hard to find a more American company than Smith & Wesson Brands, Inc. (NASDAQ: SWBI ). It's been around since before the Civil War and manufactures a uniquely American product: guns.I am a software developer by trade who focuses on finding value in the market wherever it may lie. I'm looking mainly in small caps for opportunities that provide asymmetric upside. I'm also interested in generating income through my investments, which leads me to look at high dividend yields that are sustainable. Things I ...

Market Reaction - Shares of gun manufacturers experienced a significant spike following the assassination of conservative activist Charlie Kirk, a trend commonly observed after high-profile shootings as consumers tend to purchase firearms out of fear of potential restrictions on gun sales [1][4]. - Smith & Wesson Brands Inc. saw its shares rise by 6.7% on Wednesday afternoon, with an additional increase of 2.6% during premarket trading on Thursday before declining by approximately 2% after the market opened [1]. - Sturm Ruger & Company closed up more than 3% on Wednesday and surged an additional 3% during after-hours trading, while American Outdoor Brands rose by 5.3% on the same day [2]. Historical Context - Historical data indicates that gun stocks typically surge after mass shooting incidents. For instance, following the assassination attempt on President Donald Trump, Smith & Wesson shares increased by 11% and Sturm Ruger & Company by 5% [5]. - After the Uvalde elementary school shooting in 2022, Smith & Wesson stocks surged by 7% and Sturm Ruger & Company jumped by 4% [5]. Industry Insights - Experts have noted that the gun industry operates under "perverse incentives," where sales and stock prices tend to rise in the aftermath of violent events [3]. - Research indicates that high-profile shootings lead to increased gun purchases as individuals seek to protect themselves and hedge against potential firearm bans [4].

Economic Indicators - Stock index futures are showing positive movement with S&P 500 futures up by 0.2%, Nasdaq 100 futures up by 0.2%, and Dow futures up by 0.1% as investors anticipate the retail inflation report [3] - The 10-year Treasury yield remains unchanged at 4.06%, while the 2-year yield is flat at 3.56% [4] - The Consumer Price Index (CPI) for August is expected to rise by 0.3% month-over-month, up from 0.2% in the previous month, with a year-over-year increase anticipated at 2.9%, compared to 2.7% in July [4] Gun Industry - Gun stocks have seen a rise following the shooting of conservative activist Charlie Kirk, with Smith & Wesson up 4.9% in premarket trading after a 6.7% increase on Wednesday [5][7] - American Outdoor Brands closed 5.3% higher and is slightly up in premarket, while Sturm, Ruger closed with a 3% gain and is up 7.4% postmarket [7] - The shooting incident is expected to drive demand for stricter gun control laws, historically leading to increased demand for firearms [6] Technology and Robotics - Ant Group has introduced its first humanoid robot, the R1 model, which can perform various tasks including serving as a tour guide and sorting medicine [8] - The R1 robot was demonstrated at the 2025 Inclusion Conference in Shanghai and is designed for end-to-end planning of complex assignments [8] Corporate Developments - Opendoor Technologies shares surged by 40% after the appointment of former Shopify COO Kaz Nejatian as CEO, with co-founders returning to the board [10] - Khosla Ventures and co-founder Eric Wu will invest $40 million in Opendoor through a private placement to support business growth [10]

Economic Indicators - Stock index futures are showing positive movement with S&P 500 futures up 0.2%, Nasdaq 100 futures up 0.2%, and Dow futures up 0.1% as investors anticipate the retail inflation report [3] - The 10-year Treasury yield remains unchanged at 4.06%, while the 2-year yield is flat at 3.56% [4] - The August Consumer Price Index (CPI) is expected to rise by 0.3% month-over-month, increasing from 0.2% in the previous month, with a year-over-year forecast of 2.9%, up from 2.7% in July [4] Gun Industry - Gun stocks have seen a rise following the shooting of conservative activist Charlie Kirk, with Smith & Wesson up 4.9% in premarket trading after a 6.7% increase on Wednesday [5][7] - American Outdoor Brands closed 5.3% higher and is slightly up in premarket, while Sturm, Ruger closed with a 3% gain and is up 7.4% postmarket [7] - The shooting incident is anticipated to drive demand for stricter gun control laws, historically leading to increased demand for firearms [6] Technology and Robotics - Ant Group has introduced its first humanoid robot, the R1 model, capable of performing various tasks such as serving as a tour guide and sorting medicine [8] - The R1 robot was demonstrated at the 2025 Inclusion Conference in Shanghai, showcasing its ability to handle complex assignments [8] Corporate Developments - Opendoor Technologies shares surged by 40% after the appointment of former Shopify COO Kaz Nejatian as CEO, with co-founders returning to the board [10] - Khosla Ventures and co-founder Eric Wu will invest $40 million in Opendoor through a private placement to support business growth [10]

Financial Data and Key Metrics Changes - First quarter sales were $85.1 million, reflecting a year-over-year decrease of $3.3 million or 3.7% [14] - EBITDA for the quarter was $8 million, indicating robust demand despite a seasonal slowdown [5] - Gross margin was 25.9%, down 1.5% from the prior year due to lower production absorption and tariffs [15] - The company reported a net loss of $3.4 million, translating to a loss of $0.08 per share [15] Business Line Data and Key Metrics Changes - Handgun shipments increased over 35% year-on-year, while long gun shipments decreased by 28.1% [5][6] - Average selling prices (ASPs) for handguns declined by 4%, and long guns saw a 13% decrease due to market conditions [6] - New products accounted for 37.3% of sales in the first quarter, highlighting the importance of innovation [9] Market Data and Key Metrics Changes - The market is viewed as relatively "normal" with cyclical trends and traditional seasonality [7] - Distributor inventory levels were down more than 13,000 units compared to the end of fiscal 2025, indicating strong retail demand [9] - The company expects a significant sales increase in the second quarter, projecting sales to be 3% to 5% below Q2 fiscal 2025 [17] Company Strategy and Development Direction - Innovation is a cornerstone of the company's strategy, with a strong pipeline of new products planned [9] - The company is investing in its facilities and enhancing brand support initiatives [10] - The reopening of the Smith & Wesson Academy aims to provide training for law enforcement and consumers, enhancing brand loyalty [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about maintaining or expanding market share despite macroeconomic challenges [17] - The company anticipates a normal seasonal environment for the second quarter, with no significant inventory impact expected [17] - Gross margin for Q2 is expected to align with Q1 levels, with operating expenses projected to increase by 20% [18] Other Important Information - Cash used in operations was $8.1 million, significantly lower than the prior year due to a net working capital decrease [16] - The board authorized a quarterly dividend of $0.13, with payment scheduled for October 2 [17] Q&A Session Summary Question: ASPs in handgun and long gun markets - Management is pleased with ASPs and expects to maintain or increase them as the busy season approaches [20] Question: Opportunities in long gun business - The company is expanding its lever-action product line and exploring new market segments [22] Question: Impact of regulatory changes on NFA items - There is pent-up demand in the suppressor market, which is expected to grow with upcoming regulatory changes [23] Question: Performance of legacy products - Legacy products performed well, with the company gaining market share and focusing on inventory management [26][27] Question: Promotional activity in the back half of the year - Management does not foresee a need for increased promotional activity, expecting ASPs to hold steady [28][29]

Financial Performance - Q1 net sales were $85.1 million, a decrease of $3.3 million or 3.7% from the same quarter last year [6] - Q1 gross margin was 25.9%, down from 27.4% in the comparable quarter last year [6] - The company reported a net loss of $3.4 million, or $0.08 per diluted share, compared to a net loss of $1.9 million, or $0.04 per diluted share, for the same quarter last year [6][12] Product Demand and Strategy - The first quarter results exceeded expectations, driven by strong demand for new products, which accounted for 37.3% of sales [3] - The company plans to continue investing in innovation to maintain its leadership position in the firearms market [3] Inventory and Sales Outlook - Distributor inventory declined by over 10% from the end of the previous quarter, indicating positive sell-through at retail [3] - The company expects significant sales growth in the second fiscal quarter compared to the first quarter, projecting sales to be approximately 3-5% below the second quarter of fiscal 2025 [3] Dividend Announcement - The board of directors has authorized a quarterly dividend of $0.13 per share, payable to stockholders of record on September 18, 2025 [3] Non-GAAP Financial Measures - Non-GAAP adjusted EBITDAS for Q1 was $8.0 million, or 9.5% of net sales, compared to $10.2 million, or 11.8% of net sales, for the same quarter last year [6][19] - Non-GAAP net loss was $3.4 million, or $0.08 per diluted share, compared to $881 thousand, or $0.02 per diluted share, for the comparable quarter last year [6][16]

The United States of America has one of the highest gun homicide rates in the entire world. A fact that rose to top of mind this week when a shooter opened fire at the Annunciation Church in Minneapolis during a grade school mass, killing two children and injuring fi 15 other children uh and three adults. The gun homicide rate in the United States is 26 times that of other high-income countries.According to analysis by the Gun Safety Organization, Every Time, see the line at the bottom. like it looks like i ...

You expressed a sentiment u very far from thoughts and prayers. You said these children were probably praying when they were shot to death at Catholic school. Don't give us your effing thoughts and prayers. Trump got rid of the office of gun violence prevention. Trump gutted the resources that were in place to keep our communities safe. U you like my friend John Saki have had it with the thoughts and prayers. Yeah, man. Thanks for having me on. We we've had it with the thoughts and prayers for years. for de ...

Group 1 - Smith & Wesson Brands, Inc. plans to release its first quarter fiscal 2026 financial results on September 4, 2025, after market close [1] - A conference call and webcast will be held on the same day to discuss the financial and operational results, featuring CEO Mark Smith and CFO Deana McPherson [2] - Interested parties can participate in the conference call via specific phone numbers for North America and international callers, with a live and archived webcast available on the company's website [3] Group 2 - 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]

Group 1 - The article discusses the limitations on firearm ownership in Sweden, particularly regarding small-caliber handguns and automatic rifles, while acknowledging the presence of companies operating in the firearms segment [1] - The author expresses a beneficial long position in the shares of RGR, indicating a personal investment interest in the company [1] Group 2 - The article emphasizes the importance of conducting due diligence and research before making any investment decisions, particularly for investors with limited capital or experience [2] - It highlights the specific risks associated with investing in European and Scandinavian stocks, including withholding tax risks [2]