Last week, Smith & Wesson announced that its board of directors authorized the repurchase of up to $50 million of the company’s common stock through September 19, 2024.
The announcement comes after the company reported better-than-expected Q1 2024 results in an earnings call on September 7, 2023. The company exceeded expectations in Q1 with growth of 35 percent year-over-year to $114 million for the fiscal first quarter that ended on July 31, compared to the company’s earlier estimate of $100 million.
Smith & Wesson CEO Mark P. Smith reported that the channel inventory of the company’s products remained steady during the slow summer period, indicating healthy shipments at distributor and retailer levels. The second quarter may be less promising, however, as the number of firearm background checks dropped to the lowest monthly total since 2018. Smith attributed the drop to a return to the typical pre-pandemic summer lull in sales before the hunting and holiday seasons. The board of directors also authorized a $0.12 per share quarterly dividend to be paid on October 5.
On the company’s relocation to Tennessee, Smith reported, “Inventory was moved in phases from our Missouri distribution center into the new facility throughout the second half of July, and we went live with our distribution operations in August as planned. Assembly and plastic injection molding operations will now begin to transition over the next several weeks and continue into calendar 2024. Construction on the headquarters building is in the final stages, and we’re looking forward to the grand opening celebration on October 7.”
During Smith & Wesson’s recent annual shareholder meeting held on September 19, shareholders voted against a proposal that would have required the company to conduct a third-party human rights impact assessment. Ahead of the vote, the board of directors stated that the assessment “would require us to reduce our lawful product offerings and accept a framework for assessing broad societal harms created by human rights groups.”