Smith & Wesson Sales Soar Amid Rising Gun Control Worries
Gun maker Smith & Wesson Holding Corp (SWHC.O) reported a better-than-expected 61 percent jump in quarterly revenue, at a time when the U.S. presidential election campaigns and recent shootings fuel fears of stricter gun laws.
Shares of the company were up about 5 percent at $26.66 in extended trading.
Chief Executive James Debney told analysts on a conference call on Thursday that the demand for firearms is a result of short-term influences of “potential impact of news events and the current political environment”.
Smith & Wesson said firearm net sales jumped 56.4 percent to $194.7 million in the third quarter, from a year earlier.
Rival Sturm Ruger & Co Inc’s (RGR.N) CEO, Michael Fifer, said last week he expected a lift in demand for the company’s firearms if a Democrat wins this year’s presidential elections.
Democratic presidential front-runner Hilary Clinton has been calling for new rules to make background checks more comprehensive and close “loopholes” on some kinds of gun purchases. Such calls in the past have led to higher firearms sales out of fear that limits are coming.
Wild Thing’s comment.……….
Haha Obama has been great for gun sales.
It’s not just S&W. Almost all brands of guns, ammunition, reloading and accessories have enjoyed annual sales growth since obama became prez. He has again promised to EO newe gun regs in this last year of his presidency. If he does, hopefully it will have an adverse effect on dems running for office this year.