Smith & Wesson Brands, Inc. (NASDAQ: SWBI) announced financial results for the fourth quarter and full year fiscal 2020, ended April 30, 2020.
Quarterly net sales were $233.6 million compared with $175.7 million for the fourth quarter last year, an increase of 32.9%. It should be noted that a change required by the Tax and Trade Bureau related to the timing of federal excise tax assessment within the company’s Firearms segment favorably impacted net sales in the quarter by $16.7 million. That change had no impact on gross margin dollars or operating expenses.
Full the full year, net sales were $678.4 million compared with $638.2 million last year, an increase of 6.3% from the prior year. The change related to the timing of federal excise tax favorably impacted net sales in the year by $37.5 million. That change had no impact on gross margin dollars or operating expenses.
Mark Smith, co-President and co-Chief Executive Officer, commented, “Strong consumer demand for firearms, as reflected by adjusted National Instant Criminal Background Check System (“NICS”) results, combined with a consumer preference for our innovative products, helped us deliver growth and market share gains in our firearms business in fiscal 2020. Our results were favorably impacted by changes in the timing of our excise tax assessment, as well as strong consumer acceptance of our M&P9 Shield EZ pistol, an expansion of our award-winning line of self-defense pistols in fiscal 2020. During our fourth quarter, we were able to keep our factories and distribution center operating, while our operational management teams implemented a broad range of safety procedures and cleaning protocols, which remain in place today, to significantly reduce risk of COVID-19 transmission and keep our employees safe. In addition, our internal inventory levels allowed us to address the sudden increase in customer demand for our firearms in the quarter, while we simultaneously engaged our component outsourcing partners and reactivated our flexible manufacturing model in preparation for ongoing strength in the consumer market for firearms.”
Smith & Wesson Brands, Inc. is a provider of quality products for shooting, hunting, and rugged outdoor enthusiasts in the global consumer and professional markets. The Company reports two segments: Firearms and Outdoor Products & Accessories.