Smith & Wesson Brands (SWBI +1.29%) reported sales doubled during its fiscal third quarter, the third consecutive month where sales were up by more than 100%.
It's an unprecedented market for the industry, and background checks by the FBI on potential gun buyers are running well ahead of the torrid pace set last year, which was the all-time record for such checks.
There doesn't seem to be any let up in demand for firearms as concern for greater gun control legislation drives sales skyward.
Image source: Getty Images.
A record-setting pace
Smith & Wesson reported net sales of $257.6 million, a 102% increase over $127.4 million it notched a year ago. That's actually an easing of the growth rate it posted in each quarter of fiscal 2021, as first-quarter sales jumped 125% and second-quarter sales were 119% higher.
President and CEO Mark Smith said "for the third time in a row, [employees] delivered a record-breaking quarter" for the firearms manufacturer, an achievement accomplished during an ongoing global pandemic.
The string of record results also enabled the gunmaker to generate $49 million in net income, up from $343,000 last year; provide $25 million in seed money to American Outdoor Brands when it spun off the outdoor gear and accessories business; repay the final $25 million on its revolving loan; and left it with zero debt and $55 million in cash.
Smith & Wesson also began paying a dividend of $0.05 per share this fiscal year, which currently yields a modest 1.3% annually.
Smith also noted National Shooting Sports Foundation data indicates some 8.4 million Americans purchased their first firearm last year, with women and minorities making up more than 40% of overall purchases, which bodes well for the industry moving forward.
