Net income was down 59% to $6,233,000 in the second quarter from $15,189,000 last year on 25% lower revenues of $96,329,000 vs. $128,411,000 lapping the bump in firearms demand last year in the aftermath of the Parkland shooting. Gross margin contracted 530 basis points to 23.2%, mostly from deleveraging of fixed costs such as depreciation, maintenance, indirect labor and engineering. The results were lower than expected, especially following American Outdoor Brands’ strong results last month, sending RGR shares down almost 20%.
RGR warned that 2019 has been more challenging than expected, and that overall demand for new guns may have declined ... Log in to view full article.