Smith & Wesson, a US leader in firearm manufacturing and design, missed the target in the quarter ending in July. Sales plummeted, down $39.2 million from the same quarter last year to $131.9 million. People apparently aren't buying very many long guns these days--poor sales of what Smith & Wesson calls "modern sporting rifles" drove "87% of the decline."
James Debney, Smith & Wesson Holding Corporation President and CEO, blamed the dip on "an earlier surge in consumer buying." The markets worry this means people have all the guns--or almost all the guns--they need. But Debney disagrees, expecting a return to a "more normalized environment" in the second half of the year. Smith & Wesson shares were down as much as 15%.
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