Here are a few brief analogies for Smith & Wesson Brands (SWBI):

• It's like the Harley-Davidson for firearms. (Captures an iconic American brand known for a specific, durable, and often lifestyle-associated product.)
• Think of it as the Ford of firearms. (Describes a long-standing American manufacturer with a broad range of products within its core category, known for reliability and widespread use.)

• Handguns: A diverse range of pistols and revolvers designed for personal defense, sport shooting, and law enforcement applications.
• Long Guns: A variety of rifles, including modern sporting rifles, bolt-action rifles, and hunting rifles, as well as shotguns.

Smith & Wesson Brands (SWBI) primarily sells its firearms and related products through a business-to-business (B2B) model to various companies and agencies, which then sell to individual consumers or use the products for their operations. No single customer typically accounts for 10% or more of SWBI's net sales, reflecting a diversified distribution network. Its major customer types include:

• Wholesale Distributors: These companies purchase firearms in bulk directly from Smith & Wesson and then distribute them to thousands of smaller, independently licensed firearm dealers (FFLs) and some larger retail chains across the United States. Examples of such distributors include RSR Group, Sports South, Davidson's, and Lipsey's. These major distributors are generally privately held companies.

• Large Retail Chains: Smith & Wesson also sells directly to major sporting goods retailers and specialty firearms stores with multiple locations. These retailers then sell directly to individual consumers. Publicly traded examples include:

  • Academy Sports + Outdoors (Symbol: ASO)
  • Sportsman's Warehouse Holdings, Inc. (Symbol: SPWH)

  Other significant retailers that are privately held include Bass Pro Shops/Cabela's and Palmetto State Armory.

• Law Enforcement and Government Agencies: Smith & Wesson has a dedicated division that sells firearms directly to domestic and international law enforcement agencies, military units, and other governmental bodies for official use. This segment, while important for brand prestige and specific product lines, typically represents a smaller portion of overall sales compared to the commercial market.

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Mark P. Smith, President & Chief Executive Officer

Mark P. Smith assumed the role of President and Chief Executive Officer of Smith & Wesson Brands, Inc. in January 2020. He joined the company in 2010 as Vice President of Supply Chain Management and has been a member of the senior executive team since then. Before his tenure at Smith & Wesson, Mr. Smith was a Director with the consulting firm Alvarez & Marsal, where he provided counsel to clients on various business challenges, including bankruptcy turnarounds and mergers & acquisitions. Earlier in his career, he held several operational management positions at Ecolab, Inc. and Bell Aromatics.

Deana L. McPherson, Executive Vice President, Chief Financial Officer, Treasurer, Assistant Secretary and Principal Accounting Officer

Deana L. McPherson was appointed Executive Vice President, Chief Financial Officer, Treasurer, and Assistant Secretary in August 2020. She started her career at Smith & Wesson in June 2007 as Corporate Controller. Subsequently, she advanced to Vice President of Finance and Corporate Controller, and became Chief Accounting Officer in 2017. With over 25 years of experience as a financial professional, Ms. McPherson began her career as a Senior Auditor at Deloitte & Touche LLP. Her prior experience also includes serving as Vice President of Finance for Wood Group and as an Accounting Manager at FiberMark DSI and Rexam DSI.

Kevin Alden Maxwell, Senior Vice President, General Counsel, Chief Compliance Officer and Secretary

Kevin Alden Maxwell has served as Senior Vice President, General Counsel, Chief Compliance Officer, and Secretary for Smith & Wesson Brands, Inc. since November 2021. Prior to joining Smith & Wesson, he was Vice President, Associate General Counsel and Assistant Secretary at WestRock Company from 2016 to 2021. From 2010 to 2016, he held the position of Vice President, Assistant General Counsel and Assistant Secretary at Water Products, Inc.

Susan Jean Cupero, Vice President, Sales

Susan Jean Cupero holds the position of Vice President, Sales at Smith & Wesson Brands, Inc.

The key risks to Smith & Wesson Brands (SWBI) are primarily centered around the challenging regulatory environment, fluctuating consumer demand for firearms, and intense market competition.

1. Regulatory Uncertainty and Shifting Public Attitudes: As a firearms manufacturer, Smith & Wesson Brands faces significant risks from potential changes in gun control legislation at federal, state, and local levels. A shift in policies could lead to accelerated margin compression, and stricter gun laws are a persistent challenge. The company's business is highly susceptible to political, legislative, and regulatory factors, as well as the actions of social activists.
2. Declining Consumer Demand and Market Stagnation: Smith & Wesson has been experiencing a downturn in sales and profitability, reflecting a challenging economic environment and shifting consumer behavior. The firearms market has seen a return to "normal" demand levels after a period of elevated sales, leading to a structural decline in the industry partly driven by generational shifts. Macroeconomic pressures, such as inflation and high interest rates, also contribute to softened demand and impact consumer spending patterns. The company has specifically noted a reduction in sales activities regarding long guns.
3. Intense Competition and Market Share Erosion: Smith & Wesson's market share is under threat from both domestic and foreign competitors, such as Glock, which holds a dominant position in the global handgun market. Maintaining market share leadership and strong product innovation are crucial for the company to differentiate itself in a competitive market and navigate these challenges.

Smith & Wesson Brands, Inc. (SWBI) primarily operates in the firearms industry, manufacturing and designing a diverse range of handguns (revolvers and pistols), long guns (modern sporting rifles, pistol caliber carbines, and lever action rifles), firearm suppressors, and other related accessories.

The addressable markets for Smith & Wesson's main products and services are substantial, particularly within the United States and globally for firearms and related equipment:

• Global Firearms Market: The global firearms market was valued at approximately USD 9.93 billion in 2024 and is projected to reach USD 14.13 billion by 2032, with a Compound Annual Growth Rate (CAGR) of 4.5% from 2025 to 2032. Another estimate places the global firearms market size at USD 41.6 billion in 2024, with a projection to reach USD 68.3 billion by 2033, growing at a CAGR of 5.7% from 2025 to 2033. Yet another report values the global firearms market at USD 41.4 billion in 2023, expecting it to grow to USD 76.3 billion by 2033 at a CAGR of 6.30%.
• U.S. Firearms Market: The U.S. market for firearms was valued at USD 3.7 billion in 2024. Domestic gun and ammunition manufacturing revenue in the U.S. is projected to be USD 19.6 billion in 2025. North America, dominated by the U.S., held over 40% of the global firearms market share in 2023, contributing USD 16.6 billion in revenue. Approximately 16.1 million firearms were sold in the U.S. in 2024. The U.S. Guns and Ammunition Market is estimated to grow at a CAGR of about 2.3% from 2024 to 2030. The market size for Guns & Ammunition Manufacturing in the U.S. was USD 23.2 billion in 2024 and is projected to be USD 23.5 billion in 2025.
• Global Handgun Market: The global handgun market was valued at USD 3.6 billion in 2024. The handgun segment led the overall firearms market in 2024 with a 42% share. The global handgun market size was valued at USD 3.12 billion in 2022 and is projected to grow from USD 3.41 billion in 2023 to USD 5.35 billion by 2030, at a CAGR of 6.6%. North America dominated the handgun market with a 43.27% share in 2022.
• Global Rifle Market: The rifle segment held over 35% of the market share in the firearms industry in 2023. The rifle market is expected to grow at a CAGR of 5.5% in the forecast period.
• Global Shooting Sports Equipment Market: This market was estimated at USD 38.34 billion in 2024 and is projected to reach USD 53.90 billion by 2030, with a CAGR of 5.9% from 2025 to 2030. North America accounted for a 36.4% revenue share of this global market in 2023.
• Global Shooting and Gun Accessories Market: Valued at USD 6.45 billion in 2023, this market is expected to grow to USD 12.94 billion by 2033, demonstrating a CAGR of 7.21%. North America held a dominant share of over 40% of this market in 2023, with a revenue of USD 2.58 billion.
• U.S. Hunting and Target Shooting Economic Impact: Recreational hunting and target shooting collectively generated over USD 106.2 billion in combined retail sales and contributed USD 133 billion to economic growth in the U.S. during 2022. Target shooting alone generated USD 61.2 billion in 2020.

Smith & Wesson Brands (SWBI) is expected to drive future revenue growth over the next two to three years through several key strategies:

1. New Product Development and Innovation: A primary driver of revenue growth for Smith & Wesson is its continuous focus on new product launches and innovation. New products have significantly contributed to recent sales, accounting for over 41% of Q3 2025 sales and 37.3% of Q1 FY2026 sales. The success of new offerings, such as the 1854 lever action rifle and the Bodyguard 2.0, has been highlighted as a key growth engine. Management has indicated a strategy to "lean into innovation as a point of competitive differentiation and to drive growth," with plans to continue launching new products to meet evolving consumer demands.
2. Capacity Expansion: To support the increased demand for popular products, Smith & Wesson has planned significant capacity expansion. The company's capital spending, targeted between $25 million and $30 million for the fiscal year, is focused on these capacity expansion initiatives in addition to new product development. This expansion aims to enable higher production volumes and, consequently, increased sales.
3. Market Share Maintenance and Expansion: Despite challenging market conditions, Smith & Wesson anticipates that its current product lineup and forthcoming new product introductions will allow it to maintain or even expand its market share. This strategic focus on retaining and growing its share within the firearms market is crucial for sustaining and increasing revenue.
4. Strategic Initiatives and Brand Engagement: The reopening of the Smith & Wesson Academy is a strategic move aimed at enhancing relationships with both law enforcement and consumers. Such initiatives can foster brand loyalty, drive demand from professional markets, and generate consumer interest, indirectly contributing to revenue growth.
5. Pricing Power from Brand Strength: The company's iconic brand is expected to enable it to maintain strong average selling prices (ASPs), even amidst a tough market environment. While there have been fluctuations in ASPs, the inherent consumer loyalty to the brand helps in maintaining pricing power, which is vital for revenue stability and growth.

Share Repurchases

• Smith & Wesson Brands authorized a new share repurchase program of up to $50 million in September 2024, valid through September 20, 2025.
• The company executed significant share repurchases in prior fiscal years, including approximately $50 million in January 2021, $59.94 million in April 2021, and $40 million in July 2021.
• In fiscal year 2024 (ending April 2024), SWBI repurchased $10.2 million in common stock, and in fiscal year 2025, repurchased $25.5 million.

Share Issuance

• The number of common shares outstanding for Smith & Wesson Brands has decreased by 2.77% in one year as of November 2025, indicating a net reduction in shares.

Capital Expenditures

• Capital expenditures were reported as -$21.19 million in the last 12 months.
• Historically, capital expenditures were $19.0 million in FY2025, $87.8 million in FY2024, $89.4 million in FY2023, and $23.8 million in FY2022.
• Forecasted capital expenditures are approximately $43 million for FY2026, with an expectation of $20 million to $30 million for the full year FY2025.