Smith & Wesson Stock Rises on Q1 Earnings Beat
The firearms maker surpassed analyst revenue and profit forecasts, signaling strong consumer demand despite a year-over-year sales dip.
Shares of Smith & Wesson Brands, Inc. (NASDAQ: SWBI) rose sharply after the company announced first-quarter fiscal 2026 financial results that exceeded analyst expectations. The iconic American firearms manufacturer posted these stronger-than-anticipated figures even as it navigated a seasonal slowdown and a slight decline in year-over-year sales, signaling resilient consumer demand.
For the quarter ending July 31, 2025, , a 3.7% decrease from the same period last year. Despite the sales dip, the company recorded a net loss of $0.08 per share, which was a significant beat compared to the forecasted loss of $0.11 per share. The market responded positively to the news, with the stock climbing in subsequent trading.
The company's performance was bolstered by a successful innovation strategy. According to CEO Mark Smith, new products were a primary driver, accounting for 37.3% of sales in the quarter. "First quarter results came in better than expected, reflecting robust demand for our new products and continued strong market share," Smith commented during the earnings call. This performance was supported by healthy retail activity, as CFO Deana McPherson noted that inventory at distributors declined by over 10% from the previous quarter, indicating strong sell-through to consumers.
Management expressed confidence in its market position heading into the busier fall and winter seasons. The company issued guidance for its second quarter, projecting significant sales growth over the first quarter, though it anticipates sales will land roughly 3-5% below the levels of the second quarter of fiscal 2025. In a move reflecting its stable capital position, the board also .
Smith & Wesson's ability to outperform earnings estimates in a challenging quarter highlights the brand's strength and the early success of its new product pipeline. While facing headwinds from lower long gun shipments and rising operating expenses, the company's better-than-expected results and clean inventory position have provided a boost of confidence for investors.