Smith & Wesson net sales hit historic record numbers, the company reported recently. Sales reached $257.6 million in the third quarter of 2020, marking S&W’s third consecutive record-smashing quarter.
Smith & Wesson Sales Double
The record sales of $257.6 million far outpaced $127.4, numbers reached in 2019, reported S&W. Net income reached a record $62.3 million in 2020, obliterating the $4.2 million reached in 2019.
“I could not be more proud of our dedicated American workforce as, for the third time in a row, they delivered a record-breaking quarter for our great historic company,” said Mark Smith, President & CEO, S&W. “Over the past year, millions of our fellow Americans from all walks of life have chosen to empower themselves by exercising their 2nd Amendment rights for the first time, and our loyal employees have risen to the challenge – delivering over 1.8 million units in the first three quarters of our fiscal year alone, ensuring that these new members of the shooting sports community were able to choose the highest quality, innovative firearms that Smith & Wesson has been known for since 1852. All of this was accomplished while implementing and maintaining aggressive safety measures and process changes to keep safe in the midst of the COVID pandemic.”
“Smith & Wesson’s record-breaking financial performance enabled us to generate $60 million of cash from operations during the quarter,” said Deana McPherson, Executive Vice President & CFO, S&W. “This allowed us to complete a $50 million dollar share-repurchase program, pay our second quarter dividend, and continue to invest in capital, all while growing our cash on hand by $4.1 million during the quarter. I am pleased to announce that our Board has authorized a new $100 million dollar share repurchase program and a $0.05 per share dividend to stockholders of record as of March 17, 2021, with payment to be made on March 31, 2021.”
The Epic Run on Guns
Gun sales enjoyed unprecedented growth in 2020. The coronavirus started the run on guns last spring. Then social unrest sent many Americans to gun stores seeking personal protection. Finally, the 2020 presidential election kept gun sales soaring. Now the most anti-gun administration in U.S. history stands poised to enact serious gun control.
Smith & Wesson sales become the latest proof in an undeniable trend. Millions of Americans believe in the Second Amendment. Millions more bought their first gun during this epic run. So this run may prove far from relenting anytime soon.