Net income declined by a third to $8,208,000 from $12,274,000 in the final quarter on 13% lower sales of $105,139,000 down from $121,121,000, in a period when NSSF-adjusted NICS checks increased by 5%. The fourth quarter got off to a slow start, but sales improved sequentially through the period. By December, RGR said that it was seeing sales pick up from distributors to retailers and also better sell through at retail. Gross margin was 23.6%, off 440 basis points, primarily due to deleveraging of fixed costs against the lower top line.

RGR described the firearms market as “reckless” with excessive discounting, ... Log in to view full article.