Smith & Wesson’s Stock Price Up By 11% Following Record Year
The shares of Smith & Wesson have been rallying over the past few hours after the company released its most successful fiscal year in its 169-year history.
Smith & Wesson Rallying On The Back Of More Gun Sales
Smith & Wesson is one of the best-performing stocks today. The gun manufacturer reported better-than-expected profit and sales for its latest quarter, with gun sales going up by over 67% compared to the same quarter of the previous year.
The company pointed out that its shipments rose 70% compared to overall industry growth of 42%. The stock rally began earlier today, with the Smith & Wesson’s share price surging by 4.7% at Friday’s pre-market trading session. The rally has continued once the market opened, and it is now up by over 11% at the time of this report.
Huge guns demand boosts sales
In addition to its quarterly earnings, Smith & Wesson also presented its last fiscal year. The gun manufacturer reported its sales doubled in its last fiscal year to $1.1 billion. The surge in sales came as more Americans stockpiled guns and ammunition during the Coronavirus pandemic. Thanks to the increase in sales, Smith & Wesson generated a profit of $252.04 million, giving it enough to settle all its debts.
According to the CEO Mark Smith, the company is celebrating its best year since it was established 169 years ago. The past year was the first time Smith & Wesson has surpassed the $1 billion mark in terms of revenue, and it is celebrating it by giving full-time employees $1,200 bonuses for and part-timers $600.
Per industry reports, the massive sales generated by companies like Smith & Wesson are down to the millions of new buyers that trooped into the market. The gun industry has previously catered to white men. However, over the past few months, they have seen a record number of women and minorities, including Asian-Americans and Black Americans, enter the market.