Smith & Wesson Brands Inc (SWBI) 2025 Q2 法說會逐字稿

Good day, everyone, and welcome to Smith & Wesson Brands second quarter fiscal 2025 financial results conference call. This call is being recorded. At this time, I would like to turn the call over to Kevin Maxwell, Smith and Wesson's General Counsel, who will give some information about today's call.

大家好，歡迎參加史密斯威森品牌 2025 財年第二季財務業績電話會議。此通話正在錄音。現在，我想將電話轉給 Smith and Wesson 的總法律顧問 Kevin Maxwell，他將提供有關今天電話會議的一些資訊。

Thank you and good afternoon. Our comments today may contain forward-looking statements. Our use of the words anticipate, project, estimate, expect, intend, believe, and other similar expressions are intended to identify forward-looking statements. Forward-looking statements may also include statements on topics such as our product development, objectives, strategies, market share, demand, consumer preferences, inventory conditions for our products, growth opportunities and trends, and industry conditions in general.

謝謝你，下午好。我們今天的評論可能包含前瞻性陳述。我們使用預期、預測、估計、期望、打算、相信和其他類似表達方式的目的是識別前瞻性陳述。前瞻性陳述還可能包括有關我們的產品開發、目標、策略、市場份額、需求、消費者偏好、我們產品的庫存狀況、成長機會和趨勢以及一般行業狀況等主題的陳述。

Forward-looking statements represent our current judgment about the future and are subject to risks and uncertainties that could cause our actual results to differ materially from those expressed or implied by our statements today. These risks and uncertainties are described in our SEC filings which are available on our website along with a replay of today's call. We have no obligation to update forward-looking statements.

前瞻性陳述代表了我們目前對未來的判斷，並受到風險和不確定性的影響，這些風險和不確定性可能導致我們的實際結果與我們今天的陳述所明示或暗示的結果有重大差異。這些風險和不確定性在我們的 SEC 文件中進行了描述，這些文件以及今天電話會議的重播可在我們的網站上查看。我們沒有義務更新前瞻性陳述。

We reference certain non-GAAP financial results. Our non-GAAP financial results exclude relocation expense and other costs. Reconciliations of GAAP financial measures to non-GAAP financial measures can be found in our SEC filings and in today's earnings press release, each of which is available on our website. Also, when we reference EPS, we are always referencing fully diluted EPS and any reference to EBITDAS is to adjusted EBITDAS.

我們參考了某些非公認會計準則財務表現。我們的非公認會計準則財務表現不包括搬遷費用和其他成本。GAAP 財務指標與非 GAAP 財務指標的對帳可在我們向 SEC 提交的文件和今天的收益新聞稿中找到，每份報告均可在我們的網站上找到。此外，當我們引用每股收益時，我們始終引用完全稀釋的每股收益，並且任何提及息稅折舊攤銷前利潤(EBITDAS) 的內容都是調整後的息稅折舊攤銷前利潤(EBITDAS )。

Before I hand the call over to our speakers, I would like to remind you that when we discuss NICS results, we are referring to adjusted NICS, a metric published by the National Shooting Sports Foundation based on FBI NICS data. Adjusted NICS removes those background checks conducted for purposes other than firearms purchases. Adjusted NICS is generally considered the best available proxy for consumer firearm demand at the retail counter. Because we transfer firearms only to law enforcement agencies and federally licensed distributors and retailers, and not to end consumers, NICS generally does not directly correlate to our shipments or market share in any given time period, we believe mostly due to inventory levels in the channel.

在將電話交給發言人之前，我想提醒您，當我們討論 NICS 結果時，我們指的是調整後的 NICS，這是國家射擊運動基金會根據 FBI NICS 數據發布的一項指標。調整後的 NICS 取消了為槍支購買以外的目的進行的背景調查。調整後的 NICS 通常被認為是零售櫃檯消費者槍枝需求的最佳可用指標。由於我們僅將槍支轉讓給執法機構和聯邦許可的分銷商和零售商，而不是最終消費者，NICS 通常與我們在任何給定時間段內的發貨量或市場份額沒有直接關聯，我們認為這主要是由於渠道中的庫存水準。

Joining us on today's call are Mark Smith, our President and CEO, and Deana McPherson. Our CFO with that, I will turn the call over to Mark.

加入我們今天電話會議的有我們的總裁兼執行長馬克史密斯 (Mark Smith) 和迪安娜麥克弗森 (Deana McPherson)。我們的財務官，我會將電話轉給馬克。

Thank you, Kevin, and thanks everyone for joining us today. Second quarter results came in below our expectations as overall demand for firearms normalized late in the quarter. Despite these headwinds, we continued to outperform the market and believe we gained share led by our best-in-class innovation with new products representing 44% of our sales in the period, which I'll cover in more detail in a few moments.

謝謝你，凱文，也謝謝大家今天加入我們。由於槍支的整體需求在本季末恢復正常，第二季的業績低於我們的預期。儘管存在這些不利因素，我們的表現仍繼續跑贏市場，並相信我們憑藉一流的創新贏得了市場份額，新產品占我們同期銷售額的 44%，稍後我將對此進行更詳細的介紹。

From a profitability standpoint, as we've detailed many times before, our unique flexible manufacturing model is designed to quickly react to the volatility that is typical in the firearms industry. And as always, our team executed very well in response to the slowdown enabling us to again deliver solid adjust EBITDAS.

從獲利能力的角度來看，正如我們之前多次詳述的那樣，我們獨特的靈活製造模式旨在快速應對槍械行業典型的波動性。像往常一樣，我們的團隊在應對經濟放緩方面表現出色，使我們能夠再次提供穩健的調整後息稅折舊攤銷前利潤 (EBITDAS)。

Looking at the overall firearms market as measured by FBI background checks for firearms purchases, adjusted NICS was up 1.1% for our second quarter but deteriorated significantly as the quarter progressed, including a 5% decline in October. Overall for Smith & Wesson, our units shipped into the channel increased by 8.7%. While distributor and strategic retail account inventories largely held flat with only a 2.7% increase indicating strong share growth despite a challenging market.

從 FBI 槍支購買背景調查衡量的整體槍支市場來看，調整後的 NICS 在第二季度增長了 1.1%，但隨著季度的進展顯著惡化，其中 10 月份下降了 5%。整體而言，Smith & Wesson 進入頻道的單位數量增加了 8.7%。儘管市場充滿挑戰，但分銷商和戰略零售客戶庫存基本上持平，僅增長 2.7%，顯示份額增長強勁。

Breaking those numbers down by category, handgun NICS was flat in Q2, while long gun NICS was up 3.6%. For Smith & Wesson, our handgun shipments were up 19.2%, significantly outperforming the market due mostly to very strong demand for our new products led by the entry level price, Bodyguard 2.0. On long guns, our shipments were down 26.4%. However, I will note that this is largely due to timing associated with channel fill shipments and out-performance of new products in the comparable quarter last year.

按類別細分這些數字，手槍 NICS 在第二季度持平，而長槍 NICS 則上漲 3.6%。對於 Smith & Wesson 來說，我們的手槍出貨量成長了 19.2%，明顯優於市場表現，這主要是由於入門價格 Bodyguard 2.0 帶動的對我們新產品的強勁需求。長槍方面，我們的出貨量下降了 26.4%。然而，我要指出的是，這主要是由於與通路填充出貨量相關的時間安排以及去年同期新產品的出色表現。

Removing these outliers, shipments of our core long gun line were down only 4.8% which is typical this quarter, which is the strongest quarter for hunting products. And since we are just beginning to enter the hunting category with our lever action rifles, the benefit was less impactful on our results.

除去這些異常值，我們核心長槍系列的出貨量僅下降 4.8%，這是本季度的典型情況，這是狩獵產品最強勁的季度。由於我們剛開始使用槓桿式步槍進入狩獵類別，因此這種好處對我們的結果影響較小。

We believe that the primary driver of the demand pressure continues to be inflation. The consumer cautiousness with discretionary spend that we observed in recent quarters was more pronounced during Q2 than we anticipated. I will also note that this continued until November, as evidenced by the recent NICS results. Lower or opening price point product is generally performing better which is evidence of trade down activity.

我們認為，需求壓力的主要驅動因素仍然是通膨。我們在最近幾季觀察到的消費者對可自由支配支出的謹慎態度在第二季比我們的預期更加明顯。我還要指出的是，這種情況一直持續到 11 月，最近的 NICS 結果證明了這一點。較低或開盤價格點的產品通常表現較好，這是交易下降活動的證據。

We are well positioned to navigate this challenging demand environment as we have many times before. By remaining focused on executing against our flexible manufacturing model, we expect to preserve profitability and a strong balance sheet. Additionally, we expect to maintain and gain share through innovation.

正如我們之前多次遇到的那樣，我們已經做好了應對這種充滿挑戰的需求環境的準備。透過持續專注於執行我們的靈活製造模式，我們預計將保持獲利能力和強勁的資產負債表。此外，我們希望透過創新來維持並獲得份額。

Highlighting this point, our new Bodyguard 2.0 chambered in 380 which we launched in July has quickly become one of the most sought after concealed carry crystals in the industry. And we are proud to have won best new handgun of 2024 from the National Association of Sporting Goods Wholesalers, which represents our largest channel customers, and also 2024 Handgun of the Year from Guns and Ammo magazine, one of the most popular firearm consumer publications.

突出這一點的是，我們於 7 月推出的 380 腔室的新型 Bodyguard 2.0 迅速成為業內最受追捧的隱藏式攜帶水晶之一。我們很榮幸贏得了代表我們最大通路客戶的全國運動用品批發商協會頒發的2024 年最佳新型手槍，以及最受歡迎的槍枝消費者出版物之一《槍枝與彈藥》雜誌頒發的2024 年度最佳手槍。

Additionally, our 1854 lever action rifle continues to perform well. And with our planned expansion of this popular line throughout the second half of FY25, we expect this momentum to build even further as the year progresses.

此外，我們的 1854 槓桿式步槍仍然表現良好。隨著我們計劃在 2025 財年下半年擴展這條受歡迎的產品線，我們預計隨著時間的推移，這種勢頭將進一步增強。

Smith & Wesson has proven to be a leader in innovation. With a very strong pipeline and new products, an award-winning engineering and design team, and core value of operational excellence in quality and manufacturing efficiency, innovation will continue to be a strong driver of success.

事實證明，史密斯威森是創新領域的領導者。憑藉強大的產品線和新產品、屢獲殊榮的工程和設計團隊，以及在品質和製造效率方面卓越營運的核心價值，創新將繼續成為成功的強大推動力。

Moving now to average selling prices. Overall ASPs were down 8% versus a year ago driven by mix factors as well as increased promotional activity. Handgun ASPs declined 11% reflecting strong sales of the Bodyguard 2.0 which has a retail price of around $400 combined with lower sales than revolvers. In contrast, long gun ASPs increased 11% due to the increased sales of lever action rifles relative to the remainder of the long gun line.

現在轉向平均售價。受多種因素以及促銷活動增加的推動，整體平均售價較去年同期下降 8%。手槍平均售價下降了 11%，反映出 Bodyguard 2.0 的強勁銷售，其零售價約為 400 美元，且銷量低於左輪手槍。相較之下，由於槓桿式步槍的銷售量相對於長槍系列的其餘產品有所增加，長槍的平均售價增加了 11%。

Additionally and as expected, the market has become increasingly competitive with substantial promotional activity across the board. With our strong balance sheet, we are able to carefully evaluate our participation in promotions and we'll continue to do so thoughtfully, but we do anticipate sustained pressure on ASPs throughout the remainder of the fiscal year from promotional spending.

此外，正如預期的那樣，市場競爭日益激烈，全面開展大量促銷活動。憑藉我們強大的資產負債表，我們能夠仔細評估我們對促銷的參與，並且我們將繼續深思熟慮地這樣做，但我們確實預計促銷支出將在本財年剩餘時間內對平均售價造成持續壓力。

In summary, our disciplined approach to managing the business continues to deliver solid profitability and a strong balance sheet no matter the market conditions. We remain committed to our capital allocation strategy of returning value to the stockholders, as evidenced by our very healthy quarterly dividends and our repurchase of 1.6 million shares since the beginning of this fiscal year with 754,000 of those shares purchased in Q2.

總而言之，無論市場狀況如何，我們嚴格的業務管理方法都能繼續提供穩健的獲利能力和強勁的資產負債表。我們仍然致力於為股東回報價值的資本配置策略，我們非常健康的季度股息以及自本財年開始以來回購了160 萬股股票（其中754,000 股是在第二季度購買的）就證明了這一點。

Finally, and as always, I just want to thank our entire team of dedicated Smith & Wesson employees for tirelessly putting their skills to work every day to make us successful. With that, I'll turn the call over to Deana to cover the financials.

最後，像往常一樣，我只想感謝我們整個史密斯威森員工團隊，感謝他們每天不知疲倦地將自己的技能運用到工作中，使我們成功。這樣，我會將電話轉給迪安娜，詢問財務狀況。

Thanks, Mark. Net sales for our second quarter of $129.7 million were $4.7 million, or 3.8%, above the prior year comparable quarter on the strength of our new Bodyguard 380 pistol and lever action rifles. During the quarter, inventory in the distribution channel grew slightly in terms of actual units, but declined significantly in terms of weeks outstanding as expected due to increased volume. Handgun ASPs declined significantly from Q1 levels reflecting volume growth in the Bodyguard combined with additional promotions.

謝謝，馬克。由於我們新型 Bodyguard 380 手槍和槓桿式步槍，第二季的淨銷售額為 1.297 億美元，比去年同期增加了 470 萬美元，即 3.8%。本季度，分銷管道的庫存按實際單位數計算略有增長，但由於數量增加，按未償週數計算，按預期大幅下降。手槍平均售價較第一季大幅下降，反映出「保鑣」銷量的成長以及額外的促銷活動。

As expected, ASPs for long guns returned to Q4 levels. As a reminder, Q1 long gun ASPs were disproportionately high due to the mix of higher priced products and lower overall volume. Gross margin of 26.6% was 1.2% above the comparable quarter last year due to a onetime accrual in the prior year quarter for a legal settlement. Excluding this onetime accrual, the prior year margin would have been 28% or 1.3% higher than the current year. The current year margin was negatively impacted by the lower average handgun selling prices and higher labor and overhead costs.

正如預期，長槍的平均售價回到了第四季的水平。提醒一下，由於價格較高的產品和較低的整體銷量，第一季長槍的平均售價不成比例地高。由於上一季度的法律和解一次性應計費用，毛利率為 26.6%，比去年同期高 1.2%。排除此一次性應計費用，上一年的利潤率將比本年度高出 28% 或 1.3%。本年度的利潤率受到手槍平均售價下降以及勞動力和管理成本上升的負面影響。

Operating expenses of $27.6 million for our second quarter were $400,000 lower than the prior comparable quarter, with higher R&D costs and legal expenses being more than offset by the absence of costs associated with the Maryville grand opening event last year. The increased sales volume and related margin resulted in the income of $4.1 million, or $0.09 per share. On a non-GAAP basis, income from share was $0.11.

第二季的營運費用為 2,760 萬美元，比上一季減少了 40 萬美元，研發成本和法律費用的增加被去年瑪麗維爾盛大開幕活動相關費用的缺失所抵消。銷量和相關利潤的增加帶來了 410 萬美元的收入，即每股 0.09 美元。以非 GAAP 計算，股票收益為 0.11 美元。

Cash used in operations for the second quarter was $7.4 million compared with $2.9 million in the prior year comparable quarter due to a larger increase in net working capital in the current quarter, partially offset by increased net income. We spent $3.3 million on capital projects this quarter compared with $34.9 million in the prior year comparable quarter, primarily due to lower investment in the current year related to the relocation. We expect our capital spending for the year to be between $25 million and $30 million.

第二季營運中使用的現金為 740 萬美元，而去年同期為 290 萬美元，原因是本季淨營運資本增加較多，但部分被淨利增加所抵銷。本季我們在資本項目上的支出為 330 萬美元，而去年同期為 3,490 萬美元，這主要是由於本年度與搬遷相關的投資減少。我們預計今年的資本支出將在 2,500 萬美元至 3,000 萬美元之間。

In September, our board approved a new $50 million share repurchase authorization effective when the prior authorization expired. Also, during the quarter, we signed a new unsecured $175 million line of credit. This new line increased our total available borrowing by $75 million and extended the maturity to October 2029.

9 月份，我們的董事會批准了一項新的 5,000 萬美元股票回購授權，該授權在先前授權到期後生效。此外，在本季度，我們簽署了新的 1.75 億美元無擔保信貸額度。這項新額度使我們的可用借款總額增加了 7,500 萬美元，並將期限延長至 2029 年 10 月。

This new unsecured line of credit as nearly identical terms as our prior line that was set to expire in August 2025 and shows the continued support that we have from our banking partners.

這筆新的無擔保信貸額度與我們原定於 2025 年 8 月到期的先前額度幾乎相同，這表明我們得到了銀行合作夥伴的持續支持。

During the quarter, we repurchased approximately 754,000 shares at an average price of $12.94 for a total of $9.8 million. We paid $5.8 million in dividends and ended the quarter with $39.1 million in cash and $100 million in borrowings on our line of credit, which we expect to pay down in the second half.

本季度，我們以平均價格 12.94 美元回購了約 754,000 股股票，總金額為 980 萬美元。我們支付了 580 萬美元的股息，並在本季結束時擁有 3,910 萬美元的現金和 1 億美元的信貸額度借款，我們預計將在下半年償還。

Finally, our Board has authorized our $0.13 quarterly dividend to be paid to stockholders of record on December 19, with payment to be made on January 2.

最後，我們的董事會已授權於 12 月 19 日向登記在冊的股東支付 0.13 美元的季度股息，並於 1 月 2 日支付。

Looking forward to our third quarter, based on the softer demand trends we've seen across the industry in recent months, we have reduced our expectations for the second half of fiscal 2025 and now expect full year revenue to be 5% to 10% lower than fiscal 2024.

展望第三季度，基於近幾個月來整個行業的需求疲軟趨勢，我們降低了對 2025 財年下半年的預期，現在預計全年收入將下降 5% 至 10%比 2024 財年。

Although we are experiencing very strong support for our new products, we are also seeing a more visible impact from inflation on consumer behavior, including trading down to lower price products for many of our core products. In addition, promotional activity has increased significantly due to market dynamics, creating incremental margin pressure that we expect to result in our full-year margins being in line or even slightly below fiscal 2024.

儘管我們的新產品得到了非常強大的支持，但我們也看到通貨膨脹對消費者行為產生了更明顯的影響，包括我們的許多核心產品降價到價格較低的產品。此外，由於市場動態，促銷活動大幅增加，從而產生了增量利潤壓力，我們預計這將導致我們的全年利潤率與 2024 財年持平甚至略低於 2024 財年。

Channel inventory is expected to remain stable and we believe that the distribution channel remains cautious and will continue to manage their inventory carefully.

預計渠道庫存將保持穩定，我們相信分銷渠道仍保持謹慎態度，並將繼續謹慎管理庫存。

For our third quarter, we expect our top line to be approximately 10% to 15% lower than fiscal 2024, with margins of few points lower than the prior year quarter due to increased promotions and lower ASPs. We also expect to see operating expenses at 5% to 10% above the prior year comparable quarter due to investments in research and development, promotions, and marketing programs to drive volume-related market share.

對於第三季度，我們預計我們的營收將比 2024 財年下降約 10% 至 15%，由於促銷活動增加和平均售價下降，利潤率比去年同期低幾個百分點。我們還預計，由於在研發、促銷和行銷計劃方面的投資，以推動與銷售相關的市場份額，營運費用將比去年同期增長 5% 至 10%。

Our effective tax rate is expected to be approximately 25%.

我們的有效稅率預計約為 25%。

Due to the changes in the market and the share repurchases that we've already completed, we now expect to end the year with debt levels similar to or slightly above last year with roughly an equivalent amount of cash on hand.

由於市場的變化和我們已經完成的股票回購，我們現在預計今年年底的債務水平與去年相似或略高於去年，手頭現金數量大致相當。

Although we expect that cash generation will be lower than our annual target of $75 million, our capital spending needs are also lower due to the completion of the relocation and our focus on internal projects. This will allow us to repay a large portion of our outstanding revolver while still investing in our business. As a reminder, our capital allocation plan continues to be: invest in our business, remain debt free, and return cash to our stockholders.

儘管我們預計現金產生量將低於 7500 萬美元的年度目標，但由於搬遷的完成以及我們對內部項目的關注，我們的資本支出需求也較低。這將使我們能夠償還大部分未償還的左輪手槍，同時仍投資於我們的業務。提醒一下，我們的資本分配計劃仍然是：投資我們的業務，保持無債務，並向股東返還現金。

With that operator, can we please open the call to questions from our analysts?

那位接線生可以請我們打開電話，詢問我們分析師的問題嗎？

(Operator Instructions)

（操作員說明）

Steve Dyer, Craig-Hallum.

史蒂夫戴爾，克雷格哈勒姆。

Hi, guys. This is Matthew Raab on for Steve, just one for me. Thanks for all the color on the puts and takes in the model. Just on ASPs, it sounds like there's a little bit more pressure in the second half. Do you think you can kind of hold the Q2 levels or do you think it's going to come down a little bit more than that across both handguns and long guns?

嗨，大家好。這是馬修·拉布（Matthew Raab）為史蒂夫（Steve）做的，也只是為我做的。感謝模型中放置和取出的所有顏色。僅就平均售價而言，聽起來下半年的壓力更大一些。你認為你可以保持第二季的水平還是你認為它會比手槍和長槍的下降幅度更大一些？

Yeah, good question. As I -- this is Mark, as I covered in the, in the prepared remarks, we will be seeing some pressure from probably some a little bit increased promotional activity, just do the competitive market. But we do believe that that's going to be more than offset by mix associated with some new products that we'll be launching here in the beginning of our third quarter. So overall for the second half, I think you can kind of anticipate that Q3 will be largely flat on handguns up a little bit on the long guns. And then overall for the second half will be actually be up slightly on ASPs for both.

是的，好問題。正如我——這是馬克，正如我在準備好的演講中所提到的，我們將看到一些壓力，這些壓力可能來自一些可能增加的促銷活動，只是在競爭激烈的市場上。但我們確實相信，這將被我們將在第三季初在這裡推出的一些新產品相關的組合所抵消。因此，總體來說，下半年，我認為你可以預期第三季手槍的表現將基本持平，而長槍的表現會略有上升。下半年總體而言，兩者的平均售價實際上都會略有上升。

Okay, got that. And then just on the channel, you covered it in the comments. But it seems to be mostly the finished goods, what's the confidence level bringing down inventory in the second half in the backdrop of a cooling off gun market?

好的，明白了。然後就在頻道上，你在評論中談到了它。但似乎大部分都是成品，在槍枝市場降溫的背景下，下半年庫存下降的信心水準如何？

Yeah, I mean, obviously the inventory rose a little bit more than anticipated, just simply related to the fact that the market was a little bit softer than we anticipated specifically in the back half of September and into October. But we have a pretty robust sales and operations planning process that we go through on monthly basis to make sure that our production is aligned with sales volume.

是的，我的意思是，顯然庫存增幅比預期要高一些，這只是與市場比我們預期的要軟一些（特別是在 9 月下旬和 10 月份）有關。但我們有一個相當強大的銷售和營運計劃流程，我們每月都會執行該流程，以確保我們的產量與銷售保持一致。

So feel pretty comfortable with the with being able to bring that inventory, back down. And again, strong balance sheet for the company, the core focus of ours and so, no rush there. There's no need to kind of jerk the manufacturing plant around. We'll kind of ramp that down and feel very comfortable with the inventory reduction by the end of the year.

因此，對於能夠降低庫存量感到非常滿意。再說一次，公司的資產負債表強勁，是我們的核心焦點，所以，不必急。沒有必要攪動製造工廠。我們會在年底前逐步降低庫存，並對庫存減少感到非常滿意。

Okay, great. That's it for me, thanks.

好的，太好了。對我來說就是這樣，謝謝。

Rommel Dionisio, Aegis Capital.

隆美爾·迪奧尼西奧，宙斯盾資本。

Good afternoon, thanks for taking my question. With regards to new product launches, obviously, this is the time of year where the industry is going to aggressively launch and I will leave you guys. I wonder Mark if you could just give us an initial feel for -- I realize it's early, it's still early December, but just maybe give us an initial feel for the proclivity of retailers and distributors to take on inventory, given the backdrop of somewhat challenging inflationary environment. Thanks.

下午好，感謝您提出我的問題。關於新產品的發布，顯然，這是一年中該行業將積極推出的時候，我將離開你們。我想知道馬克，你能否給我們一個初步的感覺——我意識到現在還早，現在還是12 月初，但也許可以讓我們對零售商和分銷商接受庫存的傾向有一個初步的感覺，因為在某種程度上充滿挑戰的通膨環境。謝謝。

Sure. Yeah, good question Rommel.

當然。是的，隆美爾問得好。

I think in this environment, I don't think the firearms market is unique in this for consumer goods, but it's all going to be about innovation and Smith & Wesson, I think we've proven over the last couple of years, we definitely are the leader in the marketplace on innovation and where that's going to continue to be a focus area of ours. So that -- the proclivity of the retailers and the channel partners to bring on inventory there, that's what they're looking for.

我認為在這種環境下，我不認為槍支市場在消費品方面是獨一無二的，但這一切都將與創新和史密斯威森有關，我認為我們在過去幾年中已經證明，我們絕對是創新市場的領導者，這將繼續成為我們的重點領域。因此，零售商和通路合作夥伴傾向於在那裡增加庫存，而這就是他們所尋找的。

They're looking for new products. That's where the volume is right now. I mean, the two kind of real nice bright spots for us in the second quarter were that Bodyguard 380 that we want in July. That's quickly become the number one concealed carry pistol in the in the marketplace. And the Lever Action continues to perform well. So as we continue to keep up that cadence of new product introduction in the back half, we're pretty optimistic that those are going to be a nice bright spot for us.

他們正在尋找新產品。這就是現在的音量。我的意思是，第二季對我們來說兩個真正好的亮點是我們想要在 7 月推出的 Bodyguard 380。它很快就成為市場上排名第一的隱藏式手槍。槓桿行動持續表現良好。因此，當我們繼續保持下半年推出新產品的節奏時，我們非常樂觀地認為這些將成為我們的一個不錯的亮點。

Maybe just a quick follow up if I could. I noticed obviously the softening consumer demand primarily cited inflation. There was weather a factor, it seemed like it was a really warm fall early start this hunting season and a lot of key markets in the country. So was there any impact from that, would you say?

如果可以的話，也許只是快速跟進。我注意到消費者需求的疲軟顯然主要是由通貨膨脹引起的。天氣是一個因素，這個狩獵季節似乎是一個非常溫暖的秋天，該國的許多主要市場都開始了。那麼您認為這有什麼影響嗎？

No, I wouldn't say so. Actually, Rommel our August was very strong. August was strong, beginning of September was strong, and it kind of started to slow down there second half of September into October. So I really do think it's as we covered in the prepared remarks and we believe it's really just related to inflation and just the pressure on the discretionary spend with consumers’ wallets. And so that really is the primary driver there.

不，我不會這麼說。事實上，我們的八月隆美爾非常強大。八月強勁，九月初強勁，九月下半月到十月開始放緩。因此，我確實認為這正如我們在準備好的發言中所討論的那樣，我們認為這實際上與通貨膨脹以及消費者錢包可自由支配支出的壓力有關。所以這確實是主要驅動力。

Okay, fair enough, Thanks so much.

好的，很公平，非常感謝。

Mark Smith, Lake Street Capital Markets.

馬克史密斯，湖街資本市場。

Hi, guys, handful of questions for me today. First, I just wanted to walk through the guidance to make sure that I kind of caught everything right here. Just for the year on revenue, you said down 5% to 10% I believe and margins similar to last year. Just correct me if I'm wrong on either of those. But then I missed kind of your operating expense guidance for the year.

大家好，今天有幾個問題想問我。首先，我只是想瀏覽一下指南，以確保我掌握了這裡的所有內容。就今年的收入而言，我相信您說下降了 5% 到 10%，利潤率與去年相似。如果我在其中任何一個方面都錯了，請糾正我。但後來我錯過了你們今年的營運費用指引。

We didn't give operating expense guidance for the year, we only gave for the quarter. Quarter will be up 5% to 10%.

我們沒有給出當年的營運費用指引，只給了季度的營運費用指引。一季將上漲5%至10%。

Perfect, that's what I missed. Thank you.

完美，這就是我所錯過的。謝謝。

Mark just wanted to jump back in on ASPs, primarily looking at handgun but, but maybe kind of across the board in products. Can you talk about how much ASPs maybe was under pressure due to the success of a Bodyguard and maybe the mix of a lower priced item versus maybe just general consumer pull back and them gravitating towards lower priced items, maybe trading out into other brands that aren't that maybe cater to a budget price handgun. As well as kind of any thoughts that you have around, used firearm market and how that's maybe showing NICS a little bit higher but, but maybe not as relevant to NICS, maybe less relevant to what your business is in?

馬克只是想重新關注 ASP，主要專注於手槍，但也許是全面的產品。您能否談談，由於保鑣的成功，ASP 可能承受了多大的壓力，也許是價格較低的產品與普通消費者的退縮，他們傾向於購買價格較低的產品，也許會轉而購買其他品牌的產品。以及您對二手槍枝市場的任何想法，以及這如何可能顯示 NICS 稍高一些，但可能與 NICS 不相關，可能與您的業務不太相關？

Sure. Yeah, I think it's probably a little bit of a combination of both Mark on the ASPs in terms of trading down to lower price products and the success of the Bodyguard 380. For us, I think, as I covered in the remarks, we took share specifically in handguns. And so, I think in terms of the trade down -- I mean, sorry, the trading out for other brands, I don't think that frankly for us as a factor.

當然。是的，我認為這可能是 ASP 上的馬克在低價產品交易和 Bodyguard 380 的成功方面的結合。對我們來說，我認為，正如我在演講中所提到的，我們特別在手槍領域佔據了份額。因此，我認為就交易下降而言 - 我的意思是，抱歉，換成其他品牌，坦率地說，我不認為這對我們來說是一個因素。

I think, the bigger factor was just the success of that Bodyguard, which is great, that's what we want. We want innovation to be driving the bus right now. When it's a challenging environment, whoever's got the best new products is going to win. Right now, we're winning, so that's good. On the used gun market, any time the firearms market kind of starts off like this. Used gun market does tend to pick up a little bit and so just like it always has, it is picking up a little bit right now.

我認為，更重要的因素是保鑣的成功，這很棒，這就是我們想要的。我們希望創新能立即推動公車的發展。當環境充滿挑戰時，誰擁有最好的新產品，誰就能獲勝。現在，我們正在獲勝，所以這很好。在二手槍市場上，任何時候槍枝市場都是這樣開始的。二手槍市場確實會有所回升，所以就像往常一樣，現在正在回升。

Okay. And then, you talked about promotional environment a little bit, maybe give us any indication of how you feel about the rebate programs that you guys kind of ran. It seems like later in the quarter, but still some current ones out there. If you feel like you're getting kind of the bang for your buck on those, how successful that's been kind of response from consumers.

好的。然後，您談到了促銷環境，也許可以告訴我們您對您們所進行的回扣計畫有何看法。似乎是在本季度晚些時候，但仍然有一些當前的情況。如果你覺得這些東西物超所值，那麼消費者的反應就是多麼成功。

Yeah. As I said in the remarks, we're pretty thoughtful about it. We're not -- with the balance sheet strength that we have, we don't have to be reactionary. So we really make sure we take our time and and evaluate it and make sure we're getting -- we're going to get a return for that dollar spent on rebates and on promotions, whether it be within the channel or targeted towards the consumer.

是的。正如我在評論中所說，我們對此進行了深思熟慮。我們不是－憑藉我們擁有的資產負債表實力，我們不必做出反應。因此，我們確實要確保我們花時間進行評估，並確保我們得到——我們將獲得花在回扣和促銷上的美元的回報，無論是在通路內還是針對消費者消費者。

And as far as the two that are active right now, they're doing really well for us. They're exceeding or meeting expectations. So it's working for us to sit back and kind of make sure we take a pretty measured approach to that. That said as we go forward, we're going to need to continue -- we're likely going to need to continue to participate there just because it's a more competitive environment.

就目前活躍的兩個人而言，他們對我們來說做得非常好。他們超出或達到了預期。因此，我們應該坐下來，確保我們採取相當謹慎的方法來解決這個問題。也就是說，隨著我們前進，我們將需要繼續參與——我們可能需要繼續參與那裡，只是因為這是一個更具競爭性的環境。

Okay. Looking broadly at the industry, we've talked a bit about your kind of inventory levels. Is there any fear or how do you feel about kind of industry inventory levels? Are you seeing kind of stockpiling by retailer distributors, things kind of backing up an inventory getting jammed higher than it should be within the industry or is the industry being thoughtful, I guess around inventory?

好的。縱觀整個行業，我們已經討論了一些庫存水準。您對行業庫存水準是否有任何擔憂或感覺如何？您是否看到零售商分銷商囤積庫存，導致庫存積壓超過行業內應有的水平，或者行業是否考慮周全，我猜是圍繞庫存？

Yeah, I, actually, it's the opposite. They're being very thoughtful. They're not stockpiling at all. We're very comfortable with the inventory levels we see in the channel. I think as you know, we measure on a very frequent basis, we're looking at distributor inventory levels, and measuring where they're at, and making sure they're not getting out of their SKUs. And they're not the inventory levels out there are very healthy, we're very comfortable with where they're standing.

是的，事實上，我恰恰相反。他們想得非常周到。他們根本不囤貨。我們對渠道中看到的庫存水準感到非常滿意。我想如您所知，我們非常頻繁地進行衡量，我們正在查看分銷商的庫存水平，衡量他們的庫存水平，並確保他們不會耗盡他們的 SKU。那裡的庫存水準並不是非常健康，我們對他們的現狀感到非常滿意。

Excellent. And I think the last one for me, maybe a tough one to answer because you can't quantify it. But it's -- we think about just big picture here and kind of outlook for shooting sports, the firearm industry here over the next year or two. You are -- is there a reason to think that we're maybe past or beyond fear-based buying that we saw kind of in the past?

出色的。我認為最後一個問題對我來說可能很難回答，因為你無法量化它。但這是——我們在這裡考慮的是大局，以及未來一兩年射擊運動和槍支行業的前景。您是否有理由認為我們可能已經過去或超越了我們過去看到的基於恐懼的購買？

We saw kind of a weaker demand into the election that we've seen in the past, obviously a lot of firearms purchased over the last four, five years here. Just given the mix of kind of government and courts, do you feel like maybe we're past that, big spikes in demand just as people fear any increased regulations?

我們看到選舉需求比過去有所減弱，顯然過去四、五年在這裡購買了許多槍支。考慮到政府和法院的混合，你是否覺得我們可能已經過去了，需求大幅飆升，就像人們擔心任何加強的監管一樣？

Yeah, I think -- look, I think the primary driver obviously right now is just the fact that the consumer's wallet and discretionary spend is being pinched by the state of the economy and inflation, etcetera and, the price of groceries and all the other necessities that the consumers are having to buy and our customers are having to buy.

是的，我認為 - 看，我認為現在的主要驅動因素顯然是消費者的錢包和可自由支配支出受到經濟狀況和通貨膨脹等因素以及雜貨價格和所有其他因素的擠壓。必需品，我們的客戶也必須購買的必需品。

So obviously that outweighed any fear-based buying around regulation in this election cycle. However, I think there is still that driver out there of the primary drivers the move to personal protection. So that definitely is a factor we continue to look at. But I think you're accurate in saying that the fear-based buying around gun control regulation has abated.

顯然，這超過了本次選舉週期中任何基於恐懼的圍繞監管的購買行為。然而，我認為在主要驅動因素中仍然存在推動個人防護的因素。所以這絕對是我們繼續關注的因素。但我認為你準確地說，圍繞槍支管制法規的基於恐懼的購買行為已經減弱。

Very helpful. Thank you, guys.

非常有幫助。謝謝你們，夥計們。

Thank you. There are no further questions at this time. I would like to hand the floor back over to Mark Smith for any closing comments.

謝謝。目前沒有其他問題。我想將發言權交還給馬克史密斯（Mark Smith）以徵求結束意見。

Thank you, operator. And thanks everyone for joining us today and your interest in Smith & Wesson. We look forward to speaking with you all again next quarter.

謝謝你，接線生。感謝大家今天加入我們以及您對 Smith & Wesson 的興趣。我們期待下個季度再次與大家交談。

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束。此時您可以斷開線路。感謝您的參與。