— Alyssa Milano (@Alyssa_Milano) June 21, 2018
The story from The Hill:
American Outdoor Brands, which owns the gun line, reported that sales fell by 25 percent compared to last year’s fourth quarter, and profit dropped by more than 70 percent for the same quarter, according to CNN.
Sales fell by a third compared to the previous year, and profit sunk by 84 percent overall.
So sales are down. We know that.
American Outdoor Brands CEO James Debney said the company believes “it will return to slow growth over time” but that there are “still some market contractions we see on the horizon,” CNN reported.
There was a gun bubble because of Obama that turned into a super-bubble because everyone was predicting Hillary would win.
That burst. Retails sales are up but manufacturer sales are low.
The simple explanation for that is inventory. The manufacturers had made HUGE inventory when they though a ban was coming. Now that never materialized, manufacturers, distributors, and retailers are trying to lean out their inventory.
Also, the manufactures were selling a lot of high margin guns. Now low cost low margin guns are selling.
Shit happens when a bubble bursts, see the housing crisis of 2012.
The gun industry is not going anywhere. American Outdoor Brands might to a little internal restructuring.
A lot of manufacturer rebates will be put out to boost sales at the expense of margin.
The best way to describe the 2008 – 2018 is:
“I bought 10 handguns and five AR-15’s when I thought Hillary was going to get elected. I really don’t need another AR, maybe I’ll buy a cheap 22 if there is a good [insert holiday] sale at Cabela’s.”
That’s not winning in any definition of the word I know.