Smith & Wesson Brands (SWBI) Misses Q1 EPS, Revenues Beat

Smith & Wesson Brands (NASDAQ: SWBI) reported Q1 EPS of $0.11, $0.46 worse than the analyst estimate of $0.57. Revenue for the quarter came in at $190.2 million versus the consensus estimate of $167.68 million.

Mark Smith, President and Chief Executive Officer, commented, "As expected, our first quarter results reflected a return to a normal demand pattern at the retail counter for firearms combined with temporary headwinds from inventory corrections within the channel. Despite a challenging quarter from a top-line perspective, the team delivered impressive profitability, which far exceeded the pre-pandemic comparable quarter in fiscal 2020 – not just in relative percentages but in absolute dollars. With a pickup in order rates over the past few weeks and a significant drop in unit inventory levels within the channel, we believe the inventory correction should now largely be in the rearview mirror. We continue to expect strong profitability over the remainder of the year aided by our disciplined approach to cost control and promotional spending."

Deana McPherson, Executive Vice President and Chief Financial Officer, commented, "Our financial performance continues to reflect tough year-over-year comparisons due to the return to more normalized levels of demand following the surge. We were pleased with our gross margin, which was equal to our gross margin in the first quarter of fiscal 2020 in spite of lower sales and 1.5% better when adjusted for the relocation. Our balance sheet remains strong with $110.5 million of cash and no debt, and we expect to continue generating strong cash flow for the foreseeable future. Consistent with our capital allocation strategy, our board of directors has authorized a $0.10 per share quarterly dividend, which will be paid to stockholders of record on September 22, 2022 with payment to be made on October 6, 2022.

For earnings history and earnings-related data on Smith & Wesson Brands (SWBI) click here.

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