Maryville, TN — Smith & Wesson Brands, Inc. (NASDAQ: SWBI) reported a net loss of $3.4 million, or $0.08 per share, for the first quarter of fiscal 2026, as firearm sales dipped slightly in what is historically the slowest period of the year. Net sales came in at \$85.1 million, down 3.7% compared to the same quarter last year.
Gross margin slipped to 25.9% from 27.4%, and adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) dropped to $8.0 million, compared with $10.2 million a year ago. Despite the decline, the company emphasized that results were “better than expected” thanks to strong retail demand and a lineup of new firearms driving sales.
CEO: Innovation Keeps the Brand Strong
Mark Smith, President and CEO, highlighted that new products accounted for more than a third of all sales:
“First quarter results came in better than expected, reflecting robust demand for our new products and continued strong market share for our broader portfolio in every firearms category in which we compete,” Smith said.
Smith added that Smith & Wesson’s innovation strategy—keeping the product line fresh with new introductions—remains a cornerstone of its growth plans.
Live Inventory Price Checker
|
Smith & Wesson M&P Shield X 9mm 10-Round Magazine | GunMag Warehouse | $ 36.99 |
|
|
Smith & Wesson M&P Shield X 9mm 15 Round Magazine (3 Pack) | The Mag Shack | $ 122.99 $ 99.99 |
|
|
Smith & Wesson M&P Shield X 9mm 13-Round Magazine | GunMag Warehouse | $ 36.99 |
|
|
Smith & Wesson M&P Shield X 9mm 10 Round Magazine (3 Pack) | The Mag Shack | $ 99.99 |
|
CFO: Inventory Declines Show Healthy Sell-Through
CFO Deana McPherson reported that distributor inventory levels dropped more than 10% compared to the prior quarter, signaling strong consumer sell-through. Looking ahead, she expects Q2 sales to rebound sharply with the hunting and holiday season, though still coming in 3–5% below last year’s second quarter.
The board also declared a quarterly dividend of $0.13 per share, payable October 2, 2025, to shareholders of record on September 18th, 2025.
Looking Forward
While Smith & Wesson continues to face headwinds from seasonal slowdowns and political pressures on the firearms industry, management stressed that demand for new firearms remains solid. The company is counting on its innovation pipeline to maintain leadership across handguns, rifles, and suppressors under its Smith & Wesson and Gemtech brands.
We are in dangerous times! We are NOT meeting our funding goals! Will you help out?
Smith & Wesson Performance Center 586 L-COMP Revolver Review
I would think the biggest margins are with the retailers, corporate greed is a problem. How many times have we the people paid inflated prices on various items while corporations make record profits. I try and buy in bulk during sales events on ammo, Academy sports has been a good source for that lately. Every time I go to Bass Pro I feel cheated, anyone else feel cheated?
While perusing at an LGS, I spoke to the clerk behind the gun counter, and he said they have a steady stream of people looking for a gun, but said they leave after seeing the prices of the guns and ammo.
The indoor range I shoot on rents guns and will sell them as well; problem is they are selling the used guns for way too much and it would be better to buy a new gun for the warranty.
GrabAGun just advertised a S&W model 1854 Limited Edition in .44 with wood pretty enough to justify the $3,200 price tag. Love ’em or hate ’em, they fit me perfectly and an 1854, probably a more mundane version, is on my short list.
I’m not surprised. They’ve recently come out with LOTS of new guns, new AR15’s, new lever guns, tons of new handguns.
If the price of guns and ammo comes down, they might just sell more guns.
The price of ammo is the biggest impediment to my shooting right now.