Thu, Jun 20, 8:17 PM (123 days ago)
Smith & Wesson Brands, Inc. reported net sales of $535.8 million for the fiscal year ended April 30, 2024, an 11.8% increase from the previous year. The growth was driven by a 5.9% increase in handgun sales and a 56.9% rise in long gun sales, despite a 15.6% decline in other products and services. Gross profit increased by 2.3% to $158.1 million, although gross margin fell by 2.7% due to factors like lower production volumes and inflationary pressures. Operating expenses rose by 6.8% to $113.3 million, primarily due to higher selling, marketing, and distribution costs, as well as general and administrative expenses. Operating income decreased by 7.5% to $44.8 million, impacted by legal settlements and increased promotional and freight costs. Net income for the year was $39.6 million, or $0.86 per diluted share, up from $36.9 million, or $0.80 per share, the previous year. The effective tax rate was 19.8%, down from 23.5%. The company generated $106.7 million in cash from operations, significantly higher than the prior year, and invested $81.5 million, mainly in capital expenditures. Financing activities used $18.0 million, including $22.0 million in dividends and $10.2 million in share repurchases. The company ended the fiscal year with $60.8 million in cash and cash equivalents.