BREAKING NEWS: Medical helicopter responds to injury at Indiana Packers Full Story

Gun sales plunge for Smith & Wesson owner

American Outdoor Brands posted lousy earnings Thursday, as the gun industry continues to suffer.The company, w...

Posted: Mar. 2, 2018 10:06 AM
Updated: Mar. 2, 2018 10:06 AM

American Outdoor Brands posted lousy earnings Thursday, as the gun industry continues to suffer.

The company, which owns the famous Smith & Wesson brand, reported a 33% year-over-year decline in quarterly net sales, and profits that sank 65%.

Shares plunged 18% in after-hours trading, and are down 26% year-to-date.

Related: A cloud hangs over the gun industry

American Outdoor Brands makes and sells a variety of guns, including a popular line of handguns and military-style semiautomatic rifles. These AR-15-style rifles are referred to as assault rifles by gun control advocates, but the industry calls them modern sporting rifles.

The company also said Thursday that it's eliminated 200 jobs last quarter.

On the earnings call, Chief Executive Officer James Debney addressed the Parkland shooting, saying "we share our nation's grief." But he added that the decision announced Wednesday by Dick's Sporting Goods to stop selling modern sporting rifles will have an "extremely small" impact on the company's sales.

Walmart stopped selling these kinds of guns in 2015.

Related: Who's still selling assault-style rifles?

Walmart, Dick's and the Fred Meyer stores, which are a unit of the Kroger grocery, all said this week that they will no longer sell guns to anyone under 21.

But gunmakers were struggling even before the latest backlash.

Sturm Ruger, which makes a variety of firearms including semiautomatic rifles, recently reported double-digit declines in sales and profits and has laid off hundreds of workers in the last year.

Vista Outdoor, which makes ammunition and also the Savage Arms brand of semiautomatic rifles, also reported dismal earnings earlier this year.

Remington, which makes the Bushmaster rifle used in the 2012 Sandy Hook shooting in Newtown, Connecticut, recently said it's preparing to file for Chapter 11 bankruptcy.

Article Comments

West Lafayette
Clear
46° wxIcon
Hi: 61° Lo: 56°
Feels Like: 42°
Kokomo
Overcast
46° wxIcon
Hi: 61° Lo: 54°
Feels Like: 41°
Rensselaer
Overcast
45° wxIcon
Hi: 55° Lo: 53°
Feels Like: 41°
Fowler
Overcast
45° wxIcon
Hi: 57° Lo: 54°
Feels Like: 41°
Williamsport
Overcast
47° wxIcon
Hi: 62° Lo: 57°
Feels Like: 42°
Crawfordsville
Scattered Clouds
46° wxIcon
Hi: 64° Lo: 58°
Feels Like: 42°
Frankfort
Scattered Clouds
49° wxIcon
Hi: 62° Lo: 55°
Feels Like: °
Delphi
Overcast
47° wxIcon
Hi: 60° Lo: 55°
Feels Like: 44°
Monticello
Overcast
47° wxIcon
Hi: 59° Lo: 54°
Feels Like: 44°
Logansport
Scattered Clouds
46° wxIcon
Hi: 58° Lo: 52°
Feels Like: 42°
Cool Trend Continues with Rain Returning Today.
WLFI Radar
WLFI Temps
WLFI Planner

Community Events