King’s Outdoor World Blog

Hunting Industry Doing Well

March 21st, 2006 David King - King's Outdoor World

There have been many reports in the news lately about the positive growth of many companies within the hunting industry. I have compiled a list of some news bits that I have been reading the last few months and thought it would give a good indication of some of the companies and the industry as a whole on how things are going.

EQUIPMENT SALES UP 8 PERCENT IN ’04 . . . Hunting-related equipment sales saw the highest percentage increase of all athletic and sports equipment in 2004, according to new data from the National Sporting Goods Association (NSGA). NSGA’s report “The Sporting Goods Market in 2005″ estimates sales of hunting-related equipment totaled $2.8 billion in 2004, up 8 percent from the previous year. The next-highest category was tennis-related equipment sales, which rose 5 percent. Archery increased 4 percent, camping 3 percent, golf 3 percent, bowling 3 percent, fishing 2 percent, and baseball/softball 2 percent.
Within the hunting-related equipment category, firearms saw a 9.5 percent sales increase in 2004 to $1.9 billion, according to the report. Rifle sales ($722 million) showed a 16.5 percent increase, handgun sales ($524 million) increased 10.4 percent, shotgun sales ($534 million) were up 1.9 percent and air gun sales ($120 million) rose 3 percent. At $2.8 billion in total sales, hunting-related equipment ranked third among all athletic and sports equipment categories in 2004, with only golf ($3.1 billion) and exercise equipment ($5 billion) ranking higher.

SMITH & WESSON SALES JUMP 24% . . . Smith & Wesson Holdings Corp. on Wednesday reported sales of $38.6 million in the third quarter, a 24 percent jump over the previous year. It was the highest quarterly revenue in the company’s history. “This has been a good quarter for us,” said Michael Golden, president and CEO. “In addition to achieving 24 percent sales growth, attaining profitability versus breakeven for the same quarter one year ago, and establishing a record level of revenue, we also achieved some significant milestones in our strategy to grow our core handgun business, to diversify the company, and to enter into new markets with new products.” The company expects fiscal 2006 sales to increase by 19 to 20 percent from 2005. Smith & Wesson is traded on the American Stock Exchange under the ticker symbol SWB.

GANDER MOUNTAIN 4Q PROFIT SOARS . . . Outdoor retailer Gander Mountain Co. on Wednesday reported fourth-quarter profit increased 26 percent over the previous year. At $22.2 million, or $1.45 per share, net income for the quarter topped Wall Street expectations. With the help of strong equipment and fieldwear sales during the hunting seasons and solid sales during the holidays, sales were up 18 percent to $280.8 million during the fourth quarter, the company said. “The record fourth quarter results reflect our ability to manage our business profitably,” said Mark Baker, president and CEO. “We are encouraged by the early results from initiatives we launched in 2005 that gained traction in the fourth quarter. We look forward to a balance of growth and improved profitability in 2006.” Gander Mountain is traded on the NASDAQ National Market under the ticker symbol GMTN.

FINAL SHOT SHOW NUMBERS . . . This year’s SHOT Show in Las Vegas was the largest in its 28-year history. Final figures for the Feb. 9-12 show reveal there were 24,366 buyers, 14,753 exhibiting personnel from 1,846 companies, 1,385 members of the press and 388 guests for a record total attendance of 40,892. The show encompassed 616,300 square feet of exhibit space, surpassing last year’s mark of 569,030. Owned and sponsored by NSSF, SHOT Show is the world’s largest showcase of firearms, hunting and outdoor products.

STRONG EARNINGS FOR CABELA’S . . . Cabela’s Inc. on Thursday reported that revenue rose nearly 17 percent in the fourth quarter to a record $675.4 million, compared to $579.1 million in the same period in 2004. The results topped Wall Street expectations. Total revenue for the 2005 fiscal year increased 15.7 percent to a record $1.8 billion. “We are extremely pleased with our record fourth quarter results, which represent a strong finish to another solid year,” said Dennis Highby, Cabela’s president and CEO. “The positive momentum we experienced during the holiday season gives us a heightened degree of confidence as we head into 2006.” Cabela’s is traded on the New York Stock Exchange under the ticker symbol CAB.

JULY-SEPT. INCREASE A WELCOME SIGN . . . Excise taxes collected on firearms and ammunition from July to September were up slightly when compared to the same period in 2004. The increase indicates a slight rise in sales, a welcome sign for the firearms industry. Excise taxes collected totaled $60.3 million during the quarter, up from $60 million last year, according to the U.S. Treasury Department. The totals point to an estimated $557.9 million in sales of firearms and ammunition for manufacturers during the quarter. From January to September, $169.3 million in excise taxes was collected on all firearms and ammunition, an increase of 3.8 percent over 2004.

WINCHESTER AMMO SALES UP . . . Olin Corp., makers of Winchester Ammunition, reported ammunition sales totaled $80.7 million in the fourth quarter of 2005, up slightly from $78.7 million in the same period the previous year. The company reported overall revenue of $604.1 million in the fourth quarter, a 24 percent increase from last year. In addition to manufacturing Winchester sporting ammunition, canister powder, reloading components, small caliber military ammunition and industrial cartridges, Olin is a manufacturer of metals and chemicals. The company is traded on the New York Stock Exchange under the ticker symbol OLN.

HOLIDAY GUN SALES HELP UTAH BREAK RECORDS . . . ‘Tis the season for Utah gun shops to sell 12,728 guns, breaking sales records for the Christmas season and for the year. Holiday sales were up 17 percent over 2004. Annual sales have been inching upward nearly every year, reaching this year’s new record of 72,000 rifles, shotguns and handguns sold, a 10 percent increase over 2004. Part of the increases are attributed to a new Cabela’s store in Lehi, Utah.

Entry Filed under: News and Stuff