S&W reports sales drop to pre-pandemic/riot/election levels

Discussion in 'General Gun Discussions' started by westernrover, Sep 9, 2022.

  1. westernrover

    westernrover Member

    Joined:
    May 4, 2018
    Messages:
    653
    Before I repost news I didn't generate, I try to look for an existing thread but didn't see one for this.

    S&W reported a 69.3% drop in sales versus the same quarter last year. Their stock is down over 6% from yesterday on a day when the rest of the market rallied. What S&W themselves are saying about this is that it marks the end of the surge in demand seen in recent years.

    I certainly haven't seen inventory levels on shelves or online returning to previous norms, and while I have seen some decline in prices from peaks, they generally remain well above 2019 levels.

    Here's what Mark Smith had to say: "As expected, our first quarter results reflected a return to a normal demand pattern at the retail counter for firearms combined with temporary headwinds from inventory corrections within the channel,” “Despite a challenging quarter from a top-line perspective, the team delivered impressive profitability, which far exceeded the pre-pandemic comparable quarter in fiscal 2020"

    The way I read that is, the sales boom has fizzled but they're still able to sell for high prices, the profit from which they've managed to pocket instead of passing it on to workers and suppliers. This is his attempt to tell investors some things they want to hear while having to break the news of something they don't want to hear.
     
    Styx, e rex and sparkyv like this.
  2. westernrover

    westernrover Member

    Joined:
    May 4, 2018
    Messages:
    653
    If S&W's results are indicative of the general firearms market and demand has returned to normal, we should see supply and inventories returning to normal and downward pressure on prices (still have to account for general inflation and the overall loss of value in the dollar).

    If firearms related things become generally available and prices wind down to something like 15% above 2019 levels, what's on your list? I've got to say that I don't have a lot of enthusiasm to buy anything even if it was available and reasonably priced. Everything else has been costing too much and my income hasn't increased since this started. I suspect a lot of other consumers are in a similar position where spending on firearms is taking a lower priority to other expenses that are consuming disposable income.
     
  3. Jim Watson

    Jim Watson Member

    Joined:
    Dec 24, 2002
    Messages:
    32,590
    Location:
    Florence, Alabama
    I think it was Ruger who had already reported a decline but not by that much.

    The only thing that would matter to me in a "return to normal" would be primers so I could load and shoot more economically. There is no gun or major accessory that I think would improve my shooting.
     
    nick22, johnjohn, warnerwh and 2 others like this.
  4. beeenbag

    beeenbag Member

    Joined:
    Feb 10, 2010
    Messages:
    1,741
    Location:
    Grayson, Ky
    Good, hopefully the ammunition makers are seeing the same thing and soon will not be needing so many primers. The primer drought has been worse than post sandy hook 22lr.
     
    Frulk, johnjohn, Demi-human and 4 others like this.
  5. Insignificant bill

    Insignificant bill Member

    Joined:
    May 2, 2019
    Messages:
    1,016
    Primers for a lot less than 10 cents.
     
  6. JEBruns

    JEBruns Member

    Joined:
    Oct 13, 2021
    Messages:
    433
    Location:
    NW Arkansas
    I take that data to indicate that, at least in part, the Covid helicopter money is drying up. Still a lot of it that has not been spent, but I'm seeing inventories rising on guns, some reloading supplies, off road vehicles, etc.
     
    Styx likes this.
  7. red rick

    red rick Member

    Joined:
    Aug 11, 2009
    Messages:
    2,429
    Location:
    Virginia
    Bad news for them , but good news for the consumer . I would just like to see reloading supplies back at my LGS and at a reasonable price , so I can shoot again .
     
    johnjohn likes this.
  8. jmorris

    jmorris Member

    Joined:
    Sep 30, 2005
    Messages:
    20,773
    Well, if the Dems don’t take a bath in November, they will pick back up.

    Or they will have to wait until another Republican, POTUS, Controlled House and possibly Senate does nothing and the Dems subsequent return to control, for things to pick back up…

    Just like Obama, just like Clinton…
     
    Styx, johnjohn, Demi-human and 2 others like this.
  9. jmorris

    jmorris Member

    Joined:
    Sep 30, 2005
    Messages:
    20,773
    They could diversify and probably move some primers and powder…
     
  10. KY DAN

    KY DAN Member

    Joined:
    Jan 10, 2019
    Messages:
    675
    You can only sell so much fear, Joe Biden administration can't get any scarier.
     
  11. Robert

    Robert Administrator Staff Member

    Joined:
    Jun 7, 2006
    Messages:
    13,835
    Location:
    Texan by birth, in Colorado cause I hate humidity
    Maybe prices and availability will follow suit.
     
  12. .455_Hunter

    .455_Hunter Member

    Joined:
    May 25, 2005
    Messages:
    4,515
    Location:
    Colorado Front Range
    Maybe this will mean return of products that aren't just poly, striker, or AR related.
     
    nick22, SlimReaper67, Frulk and 2 others like this.
  13. d31tc

    d31tc Member

    Joined:
    Sep 18, 2019
    Messages:
    256
    Location:
    MN
    I have on my list to buy a revolver, my grail gun would be a S&W 686-4 Plus with a 4” barrel. When I assembled “The List” to try to maintain focus, direction and priorities, the budget for that gun on Gunbroker or when they came up on another forum was $750. It’s still on my list, but lower priority because I don’t think the value is there for me at current prices. Probably will go with a new dash 6 when funds are in the bank and prices drop.
     
    Riomouse911 likes this.
  14. Riomouse911

    Riomouse911 Member

    Joined:
    Jun 5, 2013
    Messages:
    8,743
    Location:
    Ca.
    I bet Georgia Pacific and Boise Cascade all reported toilet paper pulp-wood sales are at pre-pandemic levels, too.

    But that news don’t make the press.

    My gun-related buying is holding fairly steady. :thumbup:

    Stay safe.
     
    .308 Norma likes this.
  15. Glockpride

    Glockpride Member

    Joined:
    Jun 12, 2015
    Messages:
    42
    If’n only they would remove a certain hole, perhaps they could sell more revolving shooters?
     
  16. Autodidactic

    Autodidactic Member

    Joined:
    Sep 19, 2021
    Messages:
    914
    Makes sense as things stabilize. I hope this means ammo continues to become more available and fall in price.
     
    red rick likes this.
  17. worker

    worker Member

    Joined:
    Nov 10, 2006
    Messages:
    93
    I am hoping that holster, training, and gunsmiths services increase revenue and keep that consistently, and at least proportional, to the increase in sales. And that those revenues, would not drop off when the sales stabilize.

    As I noted in another post, we (the non-LE / non-MIL market segment) lack meaningful, self-regulating, industry-to-consumer bridge.
    A bridge that would facilitate the industry participants to learn about consumer needs/preferences/ideas/etc, and, may be, purchasing power (at least in some segments).

    Instead, the major manufactures frame their research and development (and marketing) in terms of 'agency qualification scores' or something like that.

    I would also like to see a way for smaller manufacture to pool their resources conduct surveys/consumer-interest-groups testing, ideation-with-consumers framework. Pool-resources for testing labs (Including for reloading components), situational simulators (not video games), etc.

    I would like to see training methodologies and frameworks with better standardization for various situations + people-skill + people-abilities combinations.

    I would like to see text-books (with exercises at the end of each chapter) covering mathematics, physics and chemistry of the firearms and bullet components. Same for physical training aspects relating to self-defense with lethal and non-lethal tools. Same for legal theory development and application.

    I would, to be honest, like to see some part of under-grad standardized curriculum developed around those books, and may be something that can be included as part of AA degrees.

    We are not all LE officers, we need to respect and learn from the LE / MIL skills and experiences, but we should also work with the industry to embrace the way we apply and enjoy the gift of the 2nd amendment.
     
  18. BlueHeelerFl

    BlueHeelerFl Member

    Joined:
    Dec 29, 2002
    Messages:
    1,335
    Location:
    Treasure Coast, FL
    Biden is still giving speeches on banning assault weapons, which he did last night. So Creepy Joe is still spreading fear about his administration without help from anyone else.
     
  19. Archie

    Archie Member

    Joined:
    Dec 31, 2002
    Messages:
    4,047
    Location:
    Hastings, Nebraska - the Heartland!
    Indeed. Perhaps re-introduce the barrel pin?
     
  20. giggitygiggity

    giggitygiggity Member

    Joined:
    Mar 18, 2009
    Messages:
    2,121
    Good post. Your interpretation of his statement is similar to mine. I am definitely seeing more firearms and at more reasonable prices. I hope that the midterms prove favorable for firearms enthusiasts.
     
    BlueHeelerFl and .308 Norma like this.
  21. N555

    N555 Member

    Joined:
    Mar 9, 2022
    Messages:
    1,116
    Location:
    New Mexico and Texas panhandle
    Well we are about to have more elections, possibly peaceful riots and maybe more pandemic.
     
  22. shafter

    shafter Member

    Joined:
    Oct 23, 2011
    Messages:
    1,548
    I don't think prices will fall much farther. Maybe a little, but with the way inflation has been going the bottom isn't going to be what it was in 2019. Common caliber ammunition has been readily available for a year now and prices aren't really falling anymore.
     
    BlueHeelerFl likes this.
  23. Bennj

    Bennj Member

    Joined:
    May 23, 2020
    Messages:
    145
    Location:
    Central NJ
    Got an email earlier today from S&W. They are dropping the msrp of the Shield Plus by $100.
     
    BlueHeelerFl likes this.
  24. Poper

    Poper Member

    Joined:
    Jun 12, 2006
    Messages:
    2,690
    Location:
    Semi-Free State of Arizona
    I wonder if they will drop the wholesale price a hundred bucks for the dealers along with it?
    Or rebate the ones that are sitting on store shelves?
     
  25. Smaug

    Smaug Member

    Joined:
    Apr 18, 2004
    Messages:
    1,763
    Location:
    SE Wisconsin
    Maybe it’s time to reduce the margins a bit. I just checked, and a Model 29 with the 6.5” barrel is $1070 or so. Yikes.
     
  1. This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
    By continuing to use this site, you are consenting to our use of cookies.
    Dismiss Notice