Smith & Wesson Brands(SWBI 0.99%) reported fiscal first-quarter 2026 results on Sept. 4, 2025, delivering $85.1 million in net sales and an adjusted EBITDA of $8 million, exceeding internal expectations despite a 3.7% year-over-year decline in revenue. Shipments in core handgun categories surged over 35% year over year, significantly outpacing industry retail demand, while average selling prices (ASP) fell 6.1% sequentially amid a highly promotional environment.
The call also featured a major strategic update with the relaunch of the Smith & Wesson Academy and provided detailed forward guidance on revenue, gross margin, and operating expenses for the fiscal second quarter ending Oct. 31, 2025.
Handgun shipments power outperformance over retail demand
Handgun shipments to the sporting goods channel increased more than 35% year over year despite industry-wide retail demand, as measured by adjusted National Instant Criminal Background Check System (NICS) checks, declining 2.4%. This outperformance contrasts with long gun shipments, which fell 28.1% year over year, primarily due to Smith & Wesson having minimal presence in weaker shotgun and bolt-action rifle markets. Management noted the exceptional strength in Bodyguard, Shield, and M&P product lines, underscoring targeted portfolio resilience.
"During the first quarter, our performance in handguns was exceptional. With our shipments into the sporting goods channel increasing just over 35% year on year, versus NICS being down 2.4%. These results were driven by strength across several product lines, including Bodyguard, Shield, and M&P. Showing the power of the Smith & Wesson brand supported by our incredibly passionate and loyal customers."
-- Mark Peter Smith, President and CEO
This demonstrates Smith & Wesson’s ability to capture market share through portfolio depth, new product launches, and brand loyalty, even as overall firearm retail demand declines.
Smith & Wesson accelerates innovation-driven sales mix
New products accounted for 37.3% of total sales, illustrating the continued success of the company’s innovation agenda. The inaugural launch of the Shield X pistol in late July received positive market feedback, with a strong upcoming new product pipeline planned for both handguns and lever-action rifles.
"Innovation remains a cornerstone of that strategy, with new products accounting for 37.3% of sales in the first quarter. Underscoring this, we've seen a very positive initial reception to our Shield X which we introduced in late July, And as I've said many times before, our award-winning engineering and design teams consistently deliver products that resonate with consumers. With a strong pipeline of new products upcoming, we will continue to invest in innovation to keep the line fresh and ensure that we maintain our leadership position."
-- Mark Peter Smith, President and CEO
An elevated new-product mix supports pricing power and competitive differentiation, potentially limiting downside risk from cyclical retail slowdowns.
Company revives Smith & Wesson Academy as customer acquisition lever
The new Smith & Wesson Academy, located at the modern Tennessee facility, spans nearly 30 acres and features purpose-built ranges and expert-led coursework for law enforcement, military, and civilian customers. The company has appointed a distinguished former Navy SEAL and firearms instructor to lead the initiative, which will provide free access to institutional clients and offer civilian courses to drive brand engagement and responsible firearms ownership.
"Today, I'm thrilled to announce that the Smith & Wesson Academy is back. Better than ever. The state-of-the-art facility encompasses nearly 30 acres of purpose-built ranges, training facilities, fitness equipment to allow training under physical duress, classrooms, and even a two-story modular building rated for simunition live fire to allow situational training for law enforcement and military The academy will be run by Mark Cociolo, a true American hero. Mark is a retired US Navy SEAL veteran and firearms training expert. After proudly serving our country for 25 years, including with the prestigious Seal Team Six, He spent the next 13 years of his career as one of the top firearms instructors at basic underwater demolition SEAL training or BUDS in San Diego, where he helped revamp the firearm training curriculum and train nearly 4,000 Navy SEAL candidates. The goal with this new facility will be to provide yet another advantage to our current and prospective law enforcement, federal agency, and military customers. Who will all have access to Mark and his team's knowledge. And our facilities free of charge. In addition, in keeping with our goal, promote responsible firearms ownership, We aim to enhance the firearms proficiency of Iloro consumers who will be able to sign up for a variety of courses custom to my custom designed any skill set from beginners to expert."
-- Mark Peter Smith, President and CEO
This investment in customer education and institutional support is poised to strengthen market share in government and commercial segments, potentially improving long-term customer retention and deepening brand loyalty through direct engagement.
Looking ahead
Management projects fiscal second-quarter 2026 sales to increase materially over the fiscal first quarter but remain 3% to 5% below the fiscal second quarter of 2025, with gross margin forecasted to remain flat sequentially at around 25.9% due to lower absorption and steel tariffs. Operating expenses for the fiscal second quarter are expected to rise roughly 20% sequentially, driven in part by profit sharing, as well as costs associated with the Smith & Wesson Academy launch, promotions, sales activity, and distribution. Capital expenditures for fiscal 2026 are projected to be between $25 million and $30 million, and the company affirmed its 13¢ per share quarterly dividend.
