Smith & Wesson stock drops 12% after missing earnings, tariff uncertainty, and macroeconomic headwinds

From Nasdaq: 2025-06-21 10:14:00

Shares of Smith & Wesson Inc. (NASDAQ: SWBI) dropped 12% after reporting fourth quarter earnings for fiscal year 2025. Revenue was $140.76 million, missing expectations of $153.41 million and down 18% from last year. Earnings per share of 20 cents missed expectations of 23 cents and were 55% lower year-over-year.

Tariff uncertainty led Smith & Wesson to withhold full-year guidance for fiscal year 2026, impacting SWBI stock. The company reported strong free cash flow, minimal debt, and anticipated demand to remain steady in the next 12 months, particularly in longarm sales.

The stock downturn erased prior gains post-earnings, with options data showing a mix of calls and puts at various strike prices. Traders may be exiting before a holiday, setting the stage for potential volatility ahead of the market’s “triple witching day” on June 20.

Smith & Wesson’s earnings report highlighted ongoing challenges of excess inventory and margin compression due to slowing consumer demand. Despite a recent rally around $8.50, the company faces macroeconomic headwinds affecting consumer discretionary stocks, potentially impacting the stock’s value.

Three signals point to potential upside for SWBI stock, including concerns over stricter regulation, economic uncertainty, and civil unrest boosting handgun sales. Recent events and societal trends indicate sustained anxiety and potential for increased violence, factors that could impact firearm sales and stock performance.



Read more at Nasdaq:: Smith & Wesson Stock Falls on Earnings Miss, Tariff Woes