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Smith & Wesson Holding grows 27.4% in first quarter of 2006
16 Jun '06
9 min read
"We delivered excellent results for fiscal 2006 in both the international and consumer markets. We continued to establish the Smith & Wesson brand, and our products with military and law enforcement agencies around the world, with international sales increasing by 58.7 percent for the year.
On the consumer front, we transitioned from a sales network of independent manufacturer's representatives to a directly employed, Smith & Wesson sales force. Consumer sales grew 32 percent in the fourth quarter of fiscal 2006 and were up 19 percent for the fiscal year. We attribute growth in both of these key markets to a strong and expanding product portfolio, combined with a sales force dedicated to selling only Smith & Wesson products,"added Golden.
Diversification & The Brand
Golden continued, "Our strategy calls for diversification into new markets with new products. Market research indicated that our strong Smith & Wesson brand could be successfully transferred into new markets, including the long gun market for tactical rifles, hunting rifles and shotguns. We responded quickly by introducing our new M&P tactical rifle series in January 2006. Shortly after the new product launch, we received an initial order from the Las Vegas Police Department and we continue to receive strong support from the sporting goods channel.
"The core of our diversification strategy lies in the strength of our Smith & Wesson brand. With a brand name that is recognized throughout the world, we continue to secure new opportunities to leverage that brand in licensing agreements and signed three new licensing partners in fiscal 2006 for apparel, gun safes, and gun cleaning equipment. We continue to refine our portfolio of licensing partners to insure that only high-quality, value-aligned products carry and build upon the strong Smith & Wesson brand name."
On the consumer front, we transitioned from a sales network of independent manufacturer's representatives to a directly employed, Smith & Wesson sales force. Consumer sales grew 32 percent in the fourth quarter of fiscal 2006 and were up 19 percent for the fiscal year. We attribute growth in both of these key markets to a strong and expanding product portfolio, combined with a sales force dedicated to selling only Smith & Wesson products,"added Golden.
Diversification & The Brand
Golden continued, "Our strategy calls for diversification into new markets with new products. Market research indicated that our strong Smith & Wesson brand could be successfully transferred into new markets, including the long gun market for tactical rifles, hunting rifles and shotguns. We responded quickly by introducing our new M&P tactical rifle series in January 2006. Shortly after the new product launch, we received an initial order from the Las Vegas Police Department and we continue to receive strong support from the sporting goods channel.
"The core of our diversification strategy lies in the strength of our Smith & Wesson brand. With a brand name that is recognized throughout the world, we continue to secure new opportunities to leverage that brand in licensing agreements and signed three new licensing partners in fiscal 2006 for apparel, gun safes, and gun cleaning equipment. We continue to refine our portfolio of licensing partners to insure that only high-quality, value-aligned products carry and build upon the strong Smith & Wesson brand name."
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