Smith & Wesson Brands Inc. (SWBI) experienced a decline in net sales and gross profit in Q1 2025 compared to the same period in the previous year, which fell short of analysts' expectations. Here are the key reasons:
- Decrease in Net Sales: Net sales decreased to $115.9 million from $137.5 million year-over-year, attributed to lower consumer demand and a shift in product mix1.
- Gross Profit Decline: Gross profit decreased to $27.9 million from $39.4 million year-over-year, primarily due to lower production volumes and higher promotional costs1.
- Operating Income and Net Income Decrease: Operating income dropped to $4.1 million from $11.3 million year-over-year, and net income fell to $1.7 million from $7.9 million, both primarily resulting from lower net sales and gross profit1.
- Analyst Expectations: Analysts had expected higher earnings, with an estimate of $0.17 per share and revenue of $133.7 million for the quarter2. However, the company reported an EPS of $0.02, missing the consensus estimate of $0.023.
In summary, Smith & Wesson Brands Inc. (SWBI) experienced a decline in net sales, gross profit, operating income, and net income in Q1 2025 compared to the same period in the previous year, which fell short of analysts' expectations. This was primarily due to lower consumer demand, a shift in product mix, and increased promotional costs.
4/12/2025 06:42am
