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Investing.com -- Smith & Wesson Brands, Inc. (NASDAQ:SWBI) reported fourth quarter earnings that fell short of analyst expectations, sending shares tumbling 11.5% in after-hours trading.
The firearms manufacturer posted adjusted earnings per share of $0.20 for the quarter ended April 30, 2025, missing the analyst consensus of $0.32. Revenue came in at $140.8 million, below estimates of $153.71 million and down 11.6% YoY from $159.2 million.
Smith & Wesson cited macroeconomic headwinds and industry trends for the disappointing results. Net sales declined as consumers remained cautious due to factors pressuring discretionary spending. Gross margin contracted to 28.8% from 35.5% in the same quarter last year.
"Fourth quarter proved more difficult than we anticipated largely due to macro-economic and industry trends," said CEO Mark Smith. He noted that while new products and lower-priced offerings performed well, "overall conditions suggest headwinds will likely persist in the near term."
For the full fiscal year 2025, Smith & Wesson reported net sales of $474.7 million, down 11.4% from the prior year. Adjusted earnings per share for the year were $0.33, compared to $0.96 in fiscal 2024.
Looking ahead, the company expects firearms demand in fiscal 2026 to remain similar to fiscal 2025 levels, subject to economic pressures like inflation and tariff-related cost increases. Smith & Wesson’s board authorized a quarterly dividend of $0.13 per share, payable July 21 to shareholders of record on July 7.
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