Shares of Smith & Wesson fall after gun maker reports drop in demand

After the company said demand for its guns was back to pre-pandemic levels, its shares fell.

The firearms maker's net sales for the first quarter were $84.4 million, a decrease of 69% from the same time a year ago.

Smith said that the industry had its first normal summer slowdown in three years. He said that manufacturer orders were artificially depressed as partners sold through existing inventories.

Civil unrest related to police killings of black people and the presidential election led to a surge in demand for guns.

Analysts were in agreement with Smith's assessment.

Although disappointed with results that missed our estimates, we think the company remains disciplined in its approach to long-term growth and prudent management of channel inventory

Lawmakers criticized the way gun manufacturers marketed their products to young men.

The company had a net income of $76.9 million in the year-ago period.

The company's stock was down in the morning. As of Thursday, the company's shares were down 25%.