Smith & Wesson shares fall as gun sales slow

Business Week ^ | March 12, 2010

[Second Amendment First]

Shares of gun maker Smith & Wesson fell 11 percent Friday after the company gave a disappointing revenue outlook.

There are signs that booming gun sales are returning to more normal levels.

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Wold said near-term gun demand in the United States "remains somewhat cloudy" as backlogs have been worked down and inventories have returned to normal levels. He said until consumer trends were more clear, he couldn't recommend buying the stock, which he rates "neutral."

Shares of Smith & Wesson Holding Corp. fell 53 cents to $4.20.

[Second Amendment First]

I probably won't be buying any new firearms this year, but will continue to stockup on ammo. Now if I am offered any used guns at bargain prices I will consider.

[Goldsborough]

The market was going to hit a saturation point sooner or later. Not even the NRA Salesman of the Year could long do anything about that.

I waited out the frenzy, so now is the time to buy as S&W will offer incentives rather regularly going forward. Even two "free" magazines is like a $40-60 rebate.

[SkyDancer]

Last two gun shows our family went to were packed but it didn’t seem anyone was buying, just looking. The ammo and accessories tables were doing a brisk business however ....

[lovecraft]

Same here, I have what I think I need, but I don't have all that I want. Having what I want depends on finances and the wife's good graces. :)

[TaMoDee]

Yes I noticed that too. The prices some of those guys had on well used guns was terrible. I hope they had to take all
that abused steel home with them. I expect that by mid-summer that prices will start to go down.

[Truth is a Weapon]

It would be nice to see a little discounting action this year. And it would be nice to see ammo have lower prices and more availability.

[dragnet2]

The market was going to hit a saturation point sooner or later.

Exactly what happened.

[verity]

"I hope they had to take all that abused steel home with them."

How about a government subsidized "cash for abused steel" program? lol

[CharlesWayneCT]

I wonder if they are pulling for Health Care to pass. Jackboots showing up at your door to force you to buy insurance you don’t want will certainly drive up sales.

[dools007]

That’s bad news for The Marxist Onada. Looks like everyone who wants to be armed is. Woohoo!!!!!!!

Perhaps all those people who got themselves licensed over the past months have purchased their one-gun-per-year quota. They are simply waiting for the moment when they can buy again

[chris37]

I’ve got all the guns I need, except of course for the Remington Adaptive Combat Rifle, and none of them is a Smith and Wesson.

[fso301]

With firearms, one can never own all one wants. I suspect many went out and bought more than they need and as the recession wears on, many deals on private sales will be available.

[CapnJack]

“I have what I think I need, but I don’t have all that I want.”

You sir, NEED a belt fed weapon. You might not think so now, but you DO NEED one.

At least thats how my buddy sold me one.

[niteowl77]

Last two gun shows our family went to were packed but it didn’t seem anyone was buying, just looking.

Been to shows in both Iowa and Texas recently, and that appeared to be the case. Even with prices receding from the post-election spike, there is a still a glut of second-tier AR and AK rifles that are just not moving, an overabundance of poly-framed pistols, and enough imported shotguns of varying quality to supply the market for the next decade. The beef jerky business, however...

But on to S&W.

The M&P pistols may finally be blowing away any clouds left by the Sigmas and second/third gen semiautos (which sort of did a vanishing act after finally becoming reliable), but the revolver line seems to be flailing because the wheelgunners don't like MIM parts, composite barrels and the integral "locks". The M&P line of ARs comes across as more like "me too" marketing than it ought (the one example I briefly owned was quite underwhelming), but there are far worse EBRs being peddled.

My big beef with the post-Tompkins S&W has been spotty QC, but even that has not been as bad - at least for us personally - as the laughable Remington and Marlin QC of the past few years. I suspect that S&W's trouble is a case of temporary buyers' fatigue combined with the fact that ObamaCo has put many prospective buyers out of jobs and is keeping them there. Most of the manufacturers are likely in the same boat and bailing water with identical buckets.

Mr. niteowl77

[lovecraft]

At least thats how my buddy sold me one.

LOL If anybody comes a cross on a good deal for a M1A1 Abrams....I'm looking! LOL

[Farmer Dean]

I had a chance to buy a mint condition MG42 with 5 barrels back in 1978.Still kicking myself for not getting it.

[SkyDancer]

I couldn’t believe the junk they were selling - however - my dad did pick up a neat rifle. We were looking for a .22mag and he was all set to get one through Walmart, a Savage 93FV bolt action. Well he saw this Marlin semi-auto with a 9 power scope in excellent condition and bought it. Paid $285 plus tax. The Savage was $284 so all in all a good deal. Bought it for coyotes. What we had was too powerful even though we live in dense woodland.

[SkyDancer]

Some of what you wrote is way over my head. I enjoy shooting and we have our share of neat guns of all calibers. Dad just bought a .22mag Marlin semi-auto for coyotes at the show. The gun was in excellent condition. The other stuff on other tables was pure junk - and the prices for them was ridiculous.

[Thunder90]

It depends. I would have stock on hand in case Obama and the Dims get stupid and announce an AWB bill in Congress (Which is very likely in October or November when they know their goose is cooked...)

[ExpatGator]

This is why my business model is built around gunsmithing and custom gun-building and not sales.