Smith & Wesson Brands sees Q1 pricing down 5% to down 10%

The company states: “Looking forward to fiscal 2026, we currently expect demand for firearms in fiscal 2026 to be similar to what we saw in fiscal 2025, remaining subject to economic headwinds such as inflation and the impact of tariff-related cost increases. Until such time as these issues begin to resolve, further speculation on full year results will not be discussed. With near-term demand remaining soft, we believe our first quarter could be approximately 10% lower than last year, with margins also lower due to promotions and increased costs due to tariffs on raw materials that are capacity constrained in the United States, such as steel. With regard to pricing and ASPs, we expect our first quarter to be sequentially lower in the 5% to 10% range, particularly impacting long guns due to mix with handguns on the lower end due to promotions. We expect margins will remain under pressure due to low volume and cost increases, resulting in the loss of a few percentage points from last year. Operating expenses for the first quarter are expected to remain roughly flat to last year.” Comments taken from Q4 earnings conference call.