Smith & Wesson sees sluggish Q2 as firearm demand wanes

[Gunreference1]

Smith & Wesson sees sluggish Q2 as firearm demand wanes

Thu Sep 9, 2010 5:35pm EDT

* Q1 ex-items EPS $0.06 vs est $0.05, sales down 7 pct

* Q2 view misses Street estimates

* Keeps FY sales view, sees dealers restocking in H2

* Backlog down $102.6 million

* Shares down 10 pct in extended trading (Recasts; adds details, comments, share movement)

Sept 9 (Reuters) - Smith & Wesson Holding Corp's (SWHC.O) second-quarter forecast fell short of estimates as the 158-year-old firm saw demand for firearms soften after rising sharply last year, sending its shares down 10 percent.

The company's sales had been increasing since November 2008 on fears the Obama administration would bring in stricter gun-control laws.

To read the rest of the story click the link below.

http://www.reuters.com/article/idUSSGE6880JV20100909

Steve

[O.S.O.K.]

Not surprised.

Given last two year run on guns and ammo - and the economy.

People are spending their money on "necessities". And even sales of those are flat.

[weevil]

Yeah people who wanted a gun have probably already gotten one, and with the Dems looking like they're gonna get their asses handed to them in November the fear factor has gone down.

And as O.S.O.K mentioned the economy is down so without the fear driving them like before they're spending money on other necessities.

[alismith]

While S&W guns are high quality, they tend to be a little on the pricey side. Now, with the demand for them dropping, if they want to increase their sales, it might be a good idea if they started dropping their prices down to a more competitive price range. The main reason I no longer buy them is they are way out of my price range.

I love the looks of many of their revolvers, but I can't afford what I would love to have.

[F-16 CHIEF]

If they only made nice looking weapons that folks could afford, things would change.

The M&P is an upgrade over their old ugly lines of auto's, but I still wouldn't own one over a Sig, Beretta, Glock, Springfield, etc...

No disrespect to those who own it. It just doesn't do anything for me, for the price.

[Infidelski]

Backlogs are usually good for biz and if shares are down 10% its a good buy with orders waiting to get filled. I'm sure they will give another incentive before the holidays to increase sales. Stopped at a shop today to pick up some shells for a dove hunt tomorrow afternoon, the M&P .22 rifle was on factory sale with mailin rebate (think it was 299 but not sure). My only complaint with them recently is never got my gdammit mailin M&P mag after purchase last year.

[Penguin]

Well I expecte as much. I figured that AH Obama got elected gun run wouldn't last forever. Especially with a comunist in office you had to figure the economey was going to keep going south. Well now not many people have spare cash and they already bought their guns. The only surprise is the run lasted so long.

[weevil]

I think the panic is about over.


I'm even been seeing .380 on the shelves lately.




Now's the time to start looking for deals on guns and ammo.

[HDR]

There are wants and there are needs; with the shape the economy is in many people are limiting their purchases to needs.

[Partisan1983]

There are wants and there are needs; with the shape the economy is in many people are limiting their purchases to needs.

Couldn't have said it better myself.

I haven't bought a gun or an accsesory or even a single round of ammo in over two years now.

[insider]

Have you seen the price of a new Smith? No wonder sales are going down!

[FunkyPertwee]

Have you seen the price of a new Smith? No wonder sales are going down!

Centerfire has a really good christmas sale going.

M&P pro 5" for $479, 686 plus for $580 or so.