Posted on 02/22/2020 7:57:58 PM PST by E. Pluribus Unum
Gun industry data suggests the multi-year industry slump has shown signs of reversing itself, but the improvements seemed to bypass Sturm, Ruger (NYSE:RGR), which reported fourth-quarter earnings on Feb. 19 showing net revenue fell 13% year over year.
As the biggest pure-play firearms company, the results may seem incongruous since the rising tide of demand should lift all boats, but there were a number of factors working against the company, and they kept Ruger's sales depressed. However, the gunsmith still remains well positioned for when the industry recovery begins in earnest.
The high cost of high inventory
Ruger reported net sales of $105.1 million, 13% below the $121.1 million it recorded last year, generating earnings of $0.46 per share, down from $0.69 per share. New products represented $102.0 million, or 26%, of firearms sales in 2019.
Notably, however, Ruger's own inventory shrunk even though production grew during the period, because it shipped more firearms to dealers. The gunmaker doesn't sell directly to the public, only to federally licensed firearms dealers, which can often create a lag between what's showing up in industry demand and what Ruger is reporting.
According to adjusted firearms data from the National Shooting Sports Foundation, there were over four million checks conducted during the fourth quarter, up 35% from the third quarter and 5% higher year over year.
So while Ruger estimated the number of firearms sold from its dealers to retailers declined slightly year over year, they surged over 100,000 units from the previous quarter. Similarly, production and shipments all rose sequentially.
(Excerpt) Read more at fool.com ...
This must be why.
IMO, the executives in charge of gun makers are simply bottom of the barrel. They could probably pick better people by highlighting random names in the phone book. Maybe that’s how they went about the recruitment process.
Anyone want a good deal on my S&W stock. I’ll sell it to you for 1/3 of what I paid for it....which is still higher than it is now.
Seriously, I bought $1500 before the 2016 election as a small hedge against the Coughing Crook being elected. Thanks to Trump’s election that is now nearly worthless, but....that loss is dwarfed by my increased earnings the last two years which are directly attributable to the election of Trump.
So, I smile at my “loss”.
One of the big mail order gun accessory companies is three miles from my house. They bet big that Hillary was going to win and lost. I know because they laid off half their IT staff, one of whom was hired where I work.
A friend picked up one of those too. He says it’s the funnest gun he owns.
I’m curious as to whom you refer. If it’s a “secret”, email the name.
I have a couple of older Ruger “Old Army” black powder percussion revolvers. Built like tanks.
Ruger seems like a really quality buy right now. I have previously owned a Glock 9mm, and my current Ruger Security 9 seems to be at least its equal and at about 1/3 the price. I am just a casual, non-expert gun owner going off of anecdotes. I have the Ruger and an antique Mauser as concealable handguns at the moment.
I’m trying to do my part, Bought a Ruger Security 9 a while back, first Ruger ever for me. It was a nice gun, till that boating accident.
Ruger has some industry icons. The 10/22 will always be in demand with a massive inventory of aftermarket parts. And they have some sweet handguns. They will be okay.
I want a Black one!
Yeah, that’s what I was thinking!
Ruger rifles are overpriced and poorly designed.
The barrels are too short and the triggers are crap.
I have and old Ruger 77 30-06 and a Ruger 22lr semi-auto pistol. I talked with their customer service people several times. I hold an FFL license. They are great people. Made in the USA and to me, they are good firearms. I’ve dropped several elk and deer with the 77. Stamped in the barrel are the words “Made In The 200th Year of American Liberty”. They’ll be around awhile, I think.
Yeah, I have a number of black powder percussion revolvers, including a Colt 1851 Navy and a huge Colt Walker, all very fun to shoot. The 1851 Navy was Wild Bill Hickok’s favorite side arm and one of the most popular pistols during the Old West era in spite of what you see in Western movies and old TV shows.
Ever hear of the LeMat?
LeMat,
Seen in alot of Movies
and I’d like to
Shoot one!
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