S&W Sales and Stock Improvement

[BSA1]

I am surprised this escaped comment. I certainly didn't expect it.

The traditional economic view is demand for a product will greatly decrease after a period of panic buying. This will lead to overstock on store shelves and sluggish sales resulting in lower profits causing manufacturers and retailers lowering the price to move their stock. We are seeing this in the sales of AR rifles and components.

The traditional view would also hold this theory to be true with other firearms, especially ones intended for self-defense. However Smith and Wesson announced this week the it sees “recent, positive trends” in the consumer firearm market and that’s likely to translate into higher profits for the gun maker.

The company feels so confident that it’s raised its sales and earnings targets for 2015 above what all Street has been banking on. 2015 sales are matching sales in 2013.

http://money.cnn.com/2015/04/15/inv...ncrease-stock/index.html?section=money_latest

 

[Old Fuff]

I noticed the report, but didn't bother to report it - nor the subsequent price jump in the company's stock.

Besides the obvious what impressed me was that the mostly based in New York City analysts were completely caught off guard. This confirmed my thinking that they don't have a clue about anything going on within the firearms market. They're mostly negative reports are mostly wishfully hopes.

 

[joem1945]

If sales are up, why hasn't production increased? I ordered a model 29 engraved and a model 57 almost a year ago and they haven't shown up yet.

 

[BSA1]

Are you talking about cheesey laser engraving or hammer and chisel engraving done by hand by a master one gun at a time? If it is the latter you should know the reason for the long wait.

 

[Red Wind]

I am happy to hear this. I love Smith & Wesson products, the company tradition, and their wonderful employees, who I've spent so many enjoyable hours talking with on the phone since the 1980's.

Many of these folks go back 5 or 6 generations working at the plant. They are a proud group and rightfully so. Long may this 163 year old company continue to produce great products.

Yeah, I'm a real fan. I carry a Smith almost every single day. 340PD .357 snubby or 686P .357 L frame and on the Everglades/Big Cypress swampy trails in South Florida, a 629CL .44 Magnum. Never know when a gator or python may appear.

Smith covers it all.

Python eats Alligator and explodes.

http://news.nationalgeographic.com/news/2005/10/1006_051006_pythoneatsgator.html

 

[BSA1]

I'm not sure what to make of this.

Are current gun owners increasing their inventory by buying more guns?

or

Are folks becoming first time gun owners?

Obviously if it is the latter it strengthens support for the RBKA and pro-gun laws. On the other hand it also shows the eroding faith folks have in the Government to protect them and look out for their best interests.

Their could be a lot of maxed out credit cards out there.

 

[Old Fuff]

Are current gun owners increasing their inventory by buying more guns?

I think it's a combination of new owners, particularly those who have recently obtained a permit or license to carry a concealed weapon or decided they need a gun at home, "just in case." Also without question some that own other firearms are buying more - because they think they need to, or simply because they want to.

I believe that sales will remain relatively strong as long as the President, and/or the mainstream/leftist media keep proposed new restrictive legislation at the forefront.

 

[Garrobo]

It has always

amazed me that S&W can stay in business considering all the different types of firearms that they produce while Colt can't make a go of it.

 

[guyfromohio]

I can get a shield for $360 and a BG for <$300. What is the cheapest Colt out there? That's why they struggle. Colt comes out with a VP9-quality striker-fired plast-gun in the $500-$600 range, and Colt will be back in the ring. IMO.

 

[Old Fuff]

And where does a near-bankrupt company with a quickly fading credit limit get the money to either re-tool older products that they can't make for affordable prices, or new ones that might?

Those who say, "If they just would ... (fill in the blank)" simply aren't living in the real world.

 

[rsrocket1]

Out here behind the Cannabis curtain, the only semiauto Smith and Wesson guns you can buy are the Shields and the SD9/40VE's. At first I thought S&W was crazy to "abandon" the CA market and not even attempt to renew the M&P FS and c guns on the roster, but looking at their sales, maybe they were crazy as a fox. Keep pumping out concealable guns (<$400) and bargain basement (<$300) guns that are a step above "ring of fire" guns for home defense.

 

[Red Wind]

Out here behind the Cannabis curtain,]

Now that is cool! Out here in Colorado/Washington!

But you can still buy some gun stuff! That's good.

 

[guyfromohio]

Old Fuff... Definition of insanity, right. Keep doing same thing, expect different results... Get bankruptcy protection and then reinvent one's self with new product lines. By no means, easy-peezy, but more than one company has done so successfully.

 

[Old Fuff]

Get bankruptcy protection and then reinvent one's self with new product lines. By no means, easy-peezy, but more than one company has done so successfully.

The only way that might happen (and it's highly questionable) is if a group of very wealthy, big-bucks investors buy the trademark rights - and nothing else.

Then they start from scratch and create an entirely new operation, and hope that in-and-of-itself the name will provide enough leverage to make things work.

Besides the obvious, the trouble is that the Colt brand no longer has the reputation it once did, plus the new kid on the block is going to have to go up against such competitors as Smith & Wesson, Ruger and Taurus; not to mention Glock, SIG, Beretta, and other well established domestic and European companies that are up and running, and don't have to amortize development, tooling and promotion costs before they can make any profits.

What is more probable is that someone will buy the name and trademarks, and do what Colt is doing now (without a whole lot of success) and license all kinds of mostly sub-par products in an attempted effort to exploit what left of the legend.

 

[Vern Humphrey]

The explanation is simple -- only a tiny fraction of the population carries, so the market for concealable weapons has no where to go but up and more and more people realize how much sense it makes to go armed.

 

[HankB]

It has always
amazed me that S&W can stay in business considering all the different types of firearms that they produce while Colt can't make a go of it.

I found out the hard way years ago that Colt had a "don't honor our warranty" policy - so if anything, I'm amazed that Colt has held on so far.

 

[Vern Humphrey]

I found out the hard way years ago that Colt had a "don't honor our warranty" policy - so if anything, I'm amazed that Colt has held on so far.

Colt puts a lot of effort in living up to their motto, "Clueless in Connecticut."