Last week I saw James Debney, the CEO of Smith and Wesson (ticker: SWHC, http://www.smith-wesson.com/webapp/wcs/stores/servlet/CustomContentDisplay?langId=-1&storeId=750001&catalogId=750051&content=11001), present at the Roth Capital conference in Dana Point, California.
Mr Debney made a fascinating presentation. Smith and Wesson, a company that is over 160 years old, has now become a growth company. In their latest quarter they announced sales that were up 38% year over year http://ir.smith-wesson.com/phoenix.zhtml?c=90977&p=irol-newsArticle&ID=1792505&highlight=. They are an American company based in Springfield, MA. They are highly profitable and will steadily reduce debt this year. They also raised guidance for the full year of 2013.
Smith is Wesson is a legendary iconic American brand. They have products that were designed in the 1890's that are still selling today. How many companies could say the same?
Gun retailers in the USA have been compelled to reduce hours of operation and cut back on opening hours. They simply do not want to disappoint customers for whom they are not able to keep inventory in stock. Ammunition makers such as Olin are under similar pressures. There are many first-time gun owners. More women are buying guns than ever before.
Regardless of where you stand on the gun spectrum -- from gun nut to gun control nut or something in between (me) -- these are inescapable facts.
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Seattle's own Macklemore Entertained at the Roth conference