Smith & Wesson expects sales of $825.2 million, a 20% rise from predictions in early March, according to Bloomberg.
But Remington Arms Co., which faced costly civil judgments after the Sandy Hook Elementary School massacre in 2012, is on the brink of Chapter 11 bankruptcy, The Wall Street Journal reported last week.
Why we picked this story
At our morning team huddle, we discuss stories that are “talkers.” People are primed to look for driving forces in the world, ones that we can explain through our collective experience. This is one example.
Investment analysts expect the current run on guns to continue strongly due to ongoing protests and the prospect of Democrat Joe Biden winning the November election, which could pave the way to gun control reform, Bloomberg reported.
In another example of spiking sales, Bob’s Gun Shop in Norfolk, Virginia, saw sales triple since mid-March, and an estimated 35% of those buyers were getting a gun for the first time, according to Bloomberg.
Gun sales commonly spike during election years, “particularly in the fall as we get closer to the election,” said Peter Keith, an analyst at investment bank Piper Sandler, who spoke to Bloomberg. “I think you’ll probably see continued strong demand around the civil unrest and the defund-the-police theme for July and August.”