Posted November 2, 2017 7:30 am by Comments

By Christen Smith

Ruger’s third quarter profits declined 53 percent over 2016, the biggest year on record for gun sales. (Photo: Ruger/Facebook)
Sturm, Ruger and Company’s top executive blamed the usual suspects this week for the gun maker’s second consecutive quarter of double digit earnings slide: weak demand, excess inventory and promotional overload.
CEO Chris Killoy told investors Wednesday the 53 percent decline in net profits — and the rest of Ruger’s financial statement, for that matter — proved just how “challenging” the third quarter was for the company, with little reprieve in sight.
“We offered more promotions that were moderately more aggressive than last year, but we did not chase our competitors’ offerings to achieve better short-term results,” he said. “We will continue to take a measured and thoughtful approach to sales promotions and rebate opportunities considering both the short-term benefits and the potential longer term implications both financial and reputational.”
The dismal results come after a strong first quarter for the company, which reported $167.4 million in sales — a 3 percent decline over first quarter 2016. Sales fell more than 35 percent to $104.8 million in the third quarter ending on Sept. 30, according to the company’s earnings reports. Second quarter sales likewise plummeted 22 percent. Overall, Ruger’s gun sales trail

Source: Guns.com

Leave a Reply

Your email address will not be published.