Smith & Wesson Plunges 13.79% on Earnings Miss

On June 20, 2025, Smith & Wesson's stock experienced a significant drop of 13.79% in pre-market trading.

Smith & Wesson's fiscal fourth-quarter earnings report revealed a miss in both earnings and revenue expectations. The company reported adjusted earnings per share of $0.20, falling short of the analyst consensus of $0.32. This underperformance was attributed to a decline in gun sales, impacted by inflation and rising interest rates.

In the first quarter of the 2025 fiscal year, Smith & Wesson's revenue also fell short of market expectations, with sales decreasing by 11.6% year over year. This decline in revenue was a key factor contributing to the stock's recent downturn.

During the earnings call, Smith & Wesson signaled a significant reduction in inventory, which could be a strategic move to align with the current market conditions and improve financial performance in the coming quarters.