S&W lowers financial outlook for the remainder of the year

[MillCreek]

http://americasmarkets.usatoday.com/2014/08/26/smith-wesson-misfires-on-earnings/

From the article:

“We believe that the current environment reflects high inventories industry-wide resulting from channel replenishment that occurred following an earlier surge in consumer buying.  That environment, combined with typical seasonality that slows consumer buying activity during the summer, is causing us to lower our financial outlook for fiscal 2015,” CEO James Debney said in a statement.  “We expect that these conditions will have the largest impact on our second fiscal quarter, especially on sales of our modern sporting rifles, and that we will return to a more normalized environment in the second half of our current fiscal year.”

So most people who were going to buy a gun have already bought one. Now we have stock sitting on the shelves, especially the black rifles.

[Tallpine]

So most people who were going to buy a gun have already bought one. Now we have stock sitting on the shelves, especially the black rifles.

But not .22 ammo :(

[Monkeyleg]

No kidding. Stores can't give stuff away. I've been selling ACOG scopes for $50 over my cost and EOTech sights for $15 over my cost, and they're still not moving.

Almost every gun store owner I talk to tells me the same thing. My brother said he saw an article in a financial magazine about how dead the gun industry is this year.

[mangle]

Ha!  Inventory levels are huge.  It's getting a little ridiculous.

[roo_ster]

Maybe time to build out my two AR15 lowers?  Or just buy off the shelf.

[mangle]

Everything is cheap!  I'm buying everything I need now (other than magazines, of course!).

[dogmush]

Yeah, I've been priceing out the parts for the 9mm AR I want.  It makes it hard to buy when every time I wait two weeks the prices nudge down a little lower.  Glad I sold the two rifles I was trying to sell earlier this summer.

[AJ Dual]

No kidding. Stores can't give stuff away. I've been selling ACOG scopes for $50 over my cost and EOTech sights for $15 over my cost, and they're still not moving.

Almost every gun store owner I talk to tells me the same thing. My brother said he saw an article in a financial magazine about how dead the gun industry is this year.

My problem is that the opportunity cost for optics is so damn high. Not quite as bad for EOTech's, but it's still up there. Despite the fact that I "know" how it works with optics vs. the price of the whole firearm, when complete AR's or a build I did are running $600, it's so hard to bring myself to sink $500, or $1000 or realistically even more into optics. I just keep getting another gun or an NFA item instead.  

And this is at the rock-bottom prices Monkeyleg has.

[mtnbkr]

Remember how *any* AR mag was commanding a premium and nobody had any just a few years ago?

My LGS had a big box in the middle of the store full of new milspec aluminum mags for $9.95.

Chris

[Nick1911]

Remember how *any* AR mag was commanding a premium and nobody had any just a few years ago?

My LGS had a big box in the middle of the store full of new milspec aluminum mags for $9.95.

Chris

Which means now is the time to buy.

[HankB]

S&W would sell more new revolvers if the suits in the corner offices would just stop insisting they include "The Lock" on every one . . . 

Still waiting for the price of .22lr ammo to collapse . . . so I could help the dealers whose shelves are sagging under the weight of their enormous .22lr ammo inventory.   

[Balog]

If Republicans do well 2014 elections, prices should drive down further. I'd expect a slump until the 2016 scaremongering kicks in, absent lame duck EO's and or another mass shooting.

[T.O.M.]

S&W would sell more new revolvers if the suits in the corner offices would just stop insisting they include "The Lock" on every one . . . 

I fear this will never occur.  Risk management is probably telling them that since the lock was included as a safety measure, removing that safety measure will open them to liability suits for negligent discharges, etc. The theory?  It was put in to reduce the risk of negligent discharges, yet you took it off, thereby making the revolver more dangerous.  Sucks, but I'm afraid that may be the thought.

[dogmush]

I fear this will never occur.  Risk management is probably telling them that since the lock was included as a safety measure, removing that safety measure will open them to liability suits for negligent discharges, etc. The theory?  It was put in to reduce the risk of negligent discharges, yet you took it off, thereby making the revolver more dangerous.  Sucks, but I'm afraid that may be the thought.

Maybe, but they sell other pistols with different combinations of safeties.  (M&P with and without mag and thumb safeties) So the precedent is there for offering both and letting the market choose.

[T.O.M.]

Maybe, but they sell other pistols with different combinations of safeties.  (M&P with and without mag and thumb safeties) So the precedent is there for offering both and letting the market choose.

Please don't get me wrong.  I'm a big fan of Smith revolvers.  I really want them to ditch the lock.  If nothing else, it ruins the aesthetics.  Just fear the lawyers won't let it happen.

[Balog]

Please don't get me wrong.  I'm a big fan of Smith revolvers.  I really want them to ditch the lock.  If nothing else, it ruins the aesthetics.  Just fear the lawyers won't let it happen.

They already make limited editions without the lock.

[mtnbkr]

They already make limited editions without the lock.

Yup, I saw two x42 models at the LGS yesterday without locks.  One was a consignment, yet of recent manufacture, the other was NIB.  The NIB example was well under $500 (the consignment was a bit over $500 but at CT Lasergrips).

Chris

[T.O.M.]

I really hope you guys are right, and also hope that prices come down a bit... I still lust for a snubbie 686.

[Bob F.]

Performance Center needs to get their act together, too, or income will drop more. LGS recently sent 629 snubbie back for 2nd time.. First, barrel was crooked (rotated off vertical), then wouldn't eject-rough chambers. Then 2 different 629 Hunter packs had finish defects plus one was shipped w/ a bipod rather than an optic! Turn the revo upside down to mount the bipod?!?!?