Smith & Wesson Brands Inc (NASDAQ: SWBI) shares are trading lower in Thursday's after-hours session after the company reported worse-than-expected financial results.
Smith & Wesson said fiscal first-quarter revenue decreased 69.3% year-over-year to $84.4 million, which missed average analyst estimates of $129.78 million, according to Benzinga Pro. The company reported quarterly earnings of 11 cents per share, which missed average analyst estimates of 34 cents per share.
Gross margins fell to 37.3% during the first quarter compared to 47.3% in the prior year's quarter.
"As expected, our first quarter results reflected a return to a normal demand pattern at the retail counter for firearms combined with temporary headwinds from inventory corrections within the channel," said Mark Smith, president, and CEO of Smith & Wesson.
"With a pickup in order rates over the past few weeks and a significant drop in unit inventory levels within the channel, we believe the inventory correction should now largely be in the rearview mirror," Smith added.
The company's board also authorized a 10 cents per share quarterly dividend, which will be paid on Oct. 6 to stockholders of record on Sept. 22.
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SWBI Price Action: Smith & Wesson is making new 52-week lows in after-hours Thursday.
The stock was down 7.82% in after-hours at $12.38 at the time of publication.
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