SMITH & WESSON Sales Jump 32% as Q1 Swings to Profit
Firearm maker posted $112.6 million in fiscal Q1 net sales and $0.06 EPS versus a loss a year ago, and guided to roughly 10% sales growth in Q2.
Smith & Wesson Brands (SWBI) reported fiscal first-quarter net sales of $112.6 million for the quarter ended July 31, 2026, up $27.5 million, or 32.3%, from the same period last year. The company swung to GAAP net income of $2.6 million, or $0.06 per diluted share, from a net loss of $3.4 million, or $0.08 per share, a year earlier.
Gross margin came in at 28.7%, up from 25.9% a year ago. The company said it received $2.9 million in tariff refunds during the quarter, which lifted gross margin by roughly 260 basis points and represented what it called a non-recurring benefit.
Non-GAAP Adjusted EBITDAS was $13.8 million, or 12.2% of net sales, compared with $7.4 million, or 8.7%, in the comparable quarter. Operating income turned positive at $4.2 million versus an operating loss of $3.0 million last year, with total operating expenses rising to $28.1 million from $25.0 million.
Chief Executive Mark Smith said the company is off to an excellent start to fiscal 2027, citing demand in both consumer and professional channels, and said he expects the second quarter to significantly outperform last year on both the top and bottom lines.
Chief Financial Officer Deana McPherson guided to second-quarter sales roughly 10% above last year and reiterated full-year fiscal 2027 revenue growth of approximately 5% to 7% over fiscal 2026. The board authorized a quarterly dividend of $0.13 per share, payable October 1, 2026 to holders of record on September 17, 2026.
On the balance sheet, cash and equivalents fell to $18.7 million from $28.2 million at April 30, while inventories rose to $180.7 million from $156.3 million and notes and loans payable increased to $39.2 million from $19.1 million. Total assets stood at $523.3 million.
The company also changed its Adjusted EBITDAS methodology beginning in the fourth quarter of fiscal 2026 to adjust for interest income as well as interest expense, which reduced the current quarter figure by $547,000 and the year-ago figure by $632,000 versus the prior approach.
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