Smith & Wesson Sees Firearms Demand Recovery Stall

[glenwolde]

"Shares of Smith & Wesson Brands, Inc. lost about 17 percent of its value on Wednesday after the firearms maker reported a 47.5 percent drop in sales in the second quarter ended October 31 due to ongoing inventory rebalancing in the marketplace, combined with the impact of promotional activity by competitors and the trading down by consumers to a lower-priced product."



EXEC: Smith & Wesson Sees Firearms Demand Recovery Stall | SGB Media Online

 

[LVSteve]

With everything else going on in the economy, this can hardly come a shock to most of us.

 

[UncleEd]

Economy for sure but also
it's got to be the competition.

In the revolver business, Ruger
always captures a good share
of the market and for sure Colt
is doing the same now.

With semi-auto pistols, Smith's
offerings are simply swamped
by many competitors, not the
least of which, of course, Sig
and Glock.

And the "black rifle" business has
not only plenty of competition but
overall market has slowed for all
manufacturers.

 

[venomballistics]

It's kinda like the downfall of Sears.
Failure to recognize and adapt to the shift in the market cost them everything. While the world migrated to E commerce, Sears was stuck in its storefront and mail order ways. Had they embraced the web, and grafted it to their mail order segment sooner, and more completely, they'd still be while Amazon would still be a book store.
S&W is simply experiencing similar clashes with the present.

 

[SnidelyWhiplash]

I don't believe there's the brand loyalty like we used to see. Many today want what they see in the movies and tv…not a new phenomenon…but also by what's cheapest. There's lots of competition today…many new imported brands that are clones of well respected models that are cutting into sales.

There's also the economy…regardless of what we're being told we are in a recession…no amount of redefining the term changes that. After the big run on gun and ammunition sales during Covid and seeing cities burn pretty much everyone who wants a gun has one…even if they paid inflated, panic prices.

The GOP retaking the House of Representatives and the SCOTUS Bruen decision probably has some influence as well.

 

[yaktamer]

Time to bring back the 16-4. I'd buy one in each barrel length.

 

[pharmer]

Time to bring back the 16-4. I'd buy one in each barrel length.

Ha-ha, that'll do it. S&W needs the 1970 Model 10 sales right now. Joe

 

[venomballistics]

Time to bring back the 16-4. I'd buy one in each barrel length.

well ... that sells a gun.
something roller delayed blowback carbine and or sub gun with SBR options akin to the MP5 might grow legs though. That seems to be a lean segment on the shelves.

 

[kev74]

If sales doubled 2 years ago, but went down 47%, they're still ahead.

Gun sales have been crazy for a few years. I see this as a return to normalcy in the market.

 

[gjgalligan]

Could be us older guys aren't buying as many as we use to and the young woke people aren't buying at all. And it might be because many don't have extra money to spend.
Food and fuel require a shift in priorities.

 

[dockmurgw]

"and the trading down by consumers to a lower-priced product."

Translation: Mexico here we come!!! We can't even make cheap plastic guns cheap enough in Tennessee!

 

[glenwolde]

If sales doubled 2 years ago, but went down 47%, they're still ahead.

Gun sales have been crazy for a few years. I see this as a return to normalcy in the market.

True that. Due to some extraordinary events and the back-and-forth on the balance of power in Washington the gun business has been on a boom-bust roller coaster for the past decade.

The silver lining might be that if ammo sales follows guns sales, and primers sales follows ammo sales, maybe the balance will be restored next year sometime.

Until the next event or election....but we might get a window to resupply in 2023/2024.

 

[Puller]

Maybe if they loose the lawyer hole they could pick up a few sales.

 

[10Mad]

Seems like they are constantly a day late to a new trend or idea. When they do make a similar product it has some sort odd twist that just doesn't seem like a real difference.
The odd thing is in a market that is saturated with the same general product, they have product lines from the past that people are clamoring for. They piss away time and money to release the 30 super carry when they could have made a run of 3rd generation semi automatic 9mm with no R&D costs at all. Which would have been the bigger gamble?
Colt sells every revolver that they make today, mostly to people that have the same model from 25 years ago.

 

[chief38]

Well I might be off-base here, but I really think much of their downfall in sales are due to their QC Control - actually lack of it! The current leadership at the Company has really dropped the ball and no one there has been able to correct their errors. They had a golden opportunity and they blew it!

Personally I hope the Company gets sold to someone who really cares about making high quality products in a more traditional way and deems QC and customer satisfaction as #1 ! The current powers that be has proven total incompetence! They should write a book - "How to ruin a perfectly great Company in ten easy steps".

 

[Piwo]

Maybe Smith and Wesson will use this lull in production to retrain their employees in quality control. It is always a useful skill.

A fellow can dream, cant he?

 

[Beemerguy53]

Maybe if they loose the lawyer hole they could pick up a few sales.

Great point!

Look at what has happened with the rebirth of the Colt Python...several years after it hit the market, supply is just starting to catch up to demand. And their other revolvers are selling well too.

I'm certainly no marketing expert, but I think there will always be a demand among true enthusiasts for well-made, high-quality traditional firearms. I would love to see Smith and Wesson return to the days without locks, barrel liners, and gimmicks, and just make good old-fashioned revolvers. But what do I know...

 

[woodsltc]

Maybe if they loose the lawyer hole they could pick up a few sales.

That "hole" is the reason I've not bought a new S&W in years. MIM parts aren't a concern of mine and one of my most shot revolvers has MIM parts, but the "hole" is another matter.......I won't own one with it. I wonder how many sales have been lost because of it?

Don

 

[IAM Rand]

If they aren't selling that much, how come it is taking soooo long for my dealer to get in new 2.0 Metal?

 

[SnidelyWhiplash]

That "hole" is the reason I've not bought a new S&W in years. MIM parts aren't a concern of mine and one of my most shot revolvers has MIM parts, but the "hole" is another matter.......I won't own one with it. I wonder how many sales have been lost because of it?

Don

The lock is why I don't have any intentions of buying a Smith with one. I know never say never...maybe one will be available at a price too good to walk away from...who knows?

Smith kowtowed to the Clintons by doing that...more accurately it was their corporate owner at the time...Thompkins of England that did so. Still...bowing to political correctness rankled me...plus going to sleeved barrels. I'm not saying the sleeved barrels are bad...look at Dan Wesson as they've made some wonderful guns that way. I guess I'm too much a traditionalist in that regard.