Massachusetts-based gun manufacturer Smith & Wesson said this week that net sales for the third quarter were up 38.8 percent from the same period last year, a hike that experts attribute to discussions of new gun control regulations.
The company, with headquarters in Springfield, issued a report Tuesday that stated that net sales for the third quarter were $136.2 million and that their plant “has operated … at essentially full capacity for the last four quarters.” The company added that despite capacity increases, they were “unable to meet the ongoing demand across all of its firearm product lines.”
The company posted a gross profit for the third quarter of $50.1 million, as compared to $30 million in the same time period in 2012, and lowered operating to 16.2 percent of net sales, down from 20.1 percent in 2012. They attributed the lowered operating expenses primarily to increased sales volume.
“Performance gains were driven by continued robust consumer demand for firearms as well as increased sales of our M&P® polymer pistols and modern sporting rifles,” said James Debney, Smith & Wesson Holding Corporation President and Chief Executive Officer.
Debney also said the company expects the growth in sales to continue.
“Based on incremental improvements in expanding our production capacity, which will be further deployed in the fourth quarter, we are increasing our financial guidance for the full fiscal year 2013,” he said.
Smith & Wesson executives said they expect the grown in gun sales to continue, anticipating net sales for the fourth quarter to be between $165and $170 million. In addition, the company expects to see FY2013 sales of between $575 and $580 million, which would represent a year-to-year sales growth of 40 percent.
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