Net income improved by 20% in the fourth quarter to $38,121,000 from $31,713,000, but sales inched down 1% to $168,041,000 from $169,260,000 as Ruger worked to build up its own stocks and refill the long-depleted distributor channel. The top line decline was the first in eight quarters. Now that consumer demand has slowed somewhat, RGR’s finished goods inventory ended with 11,800 units, an improvement but still significantly below historical levels. Distributor inventories increased to 125,000 units, still below the level needed to support rapid fulfillment of retailer orders. Gross margin in the quarter narrowed by 20 basis points to 37.7%.

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