Smith & Wesson Brands Inc (SWBI) 2026 Q1 法說會逐字稿

Good day, everyone and welcome to Smith & Wesson Brands Inc, first quarter fiscal 2026 financial results conference call. This call is being recorded.

大家好，歡迎參加史密斯威森品牌公司2026財年第一季財務業績電話會議。本次通話正在錄音。

At this time, I would like to turn the call over to Kevin Maxwell, Smith & Wesson's General Counsel, who will give us some information about today's call.

此時，我想把電話交給史密斯威森公司的總法律顧問凱文·麥克斯韋爾，他將向我們介紹一下今天電話會議的情況。

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，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」等詞語以及其他類似表達方式，旨在識別前瞻性陳述。前瞻性陳述可能還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、產品庫存狀況、成長機會和趨勢以及行業整體狀況等主題的陳述。

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.

前瞻性陳述代表我們目前對未來的判斷，但存在風險和不確定性，可能導致我們的實際結果與我們今天陳述中明示或暗示的結果有重大差異。這些風險和不確定性已在我們的美國證券交易委員會文件中進行了描述，這些文件以及今天電話會議的錄音都可以在我們的網站上找到。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. 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 to adjusted EBITDAS.

我們引用了一些非GAAP財務表現。我們的非GAAP財務表現不包括搬遷費用。GAAP財務指標與非GAAP財務指標的調節表可在我們提交給美國證券交易委員會的文件和今天的盈利新聞稿中找到，這兩份文件均可在我們的網站上查閱。此外，當我們提到每股盈餘 (EPS) 時，我們始終指的是完全稀釋後的每股盈餘；而任何提到 EBITDAS 的地方都指的是調整後的 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 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.

在將電話交給各位發言人之前，我想提醒大家，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 數據制定的一項指標。調整後的NICS系統取消了購買槍支以外的其他目的進行的背景調查。調整後的NICS數據通常被認為是零售櫃檯消費者槍支需求的最佳替代指標。由於我們只向執法機構和聯邦許可的分銷商和零售商轉讓槍支，而不向最終消費者轉讓，因此在任何給定的時間段內，NICS 通常與我們出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平。

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.

今天參加電話會議的有我們的總裁兼執行長馬克史密斯，以及我們的財務長迪娜麥克弗森。接下來，我將把電話交給馬克。

Thank you, Kevin, and thanks everyone for joining us today. First quarter results came in better than expected with sales of $85.1 million and EBITDAS of $8 million reflecting robust demand for our new products and continued strong market share for a broader portfolio in every firearms category in which we compete.

謝謝你，凱文，也謝謝今天所有到場的各位。第一季業績優於預期，銷售額達 8,510 萬美元，EBITDAS 達 800 萬美元，反映出市場對我們新產品的強勁需求，以及我們在所競爭的每個槍械類別中，更廣泛的產品組合繼續保持強勁的市場份額。

Our performance during the seasonal slow period for firearms demonstrates the strength of our brand and the ongoing success of our innovation strategy. During the first quarter, our performance in handguns was exceptional, with our shipments into the sporting goods channel increasing just over 35% year-on-year versus NICS being down 2.4%. These results were driven by strength across several product lines, including BODYGUARD, SHIELD, and M&P showing the power of the Smith & Wesson brand, supported by our incredibly passionate and loyal customers.

我們在槍枝銷售淡季期間的表現證明了我們品牌的實力和我們創新策略的持續成功。第一季度，我們在手槍業務方面表現出色，對體育用品管道的出貨量年增超過 35%，而 NICS 則下降了 2.4%。這些業績得益於多個產品線的強勁表現，包括 BODYGUARD、SHIELD 和 M&P，展現了史密斯威森品牌的強大實力，也離不開我們熱情忠誠的客戶的支持。

In long guns, our shipments into the sporting goods channel were down 28.1% year-over-year versus NICS being down 7.8%. However, this reflects the divergent conditions between the shotgun and bolt action rifle markets where we do not play meaningfully and the MSR and lever action markets, where we continue to maintain a very strong market position.

在長槍方面，我們向體育用品通路的出貨量年減了 28.1%，而 NICS 的出貨量較去年同期下降了 7.8%。然而，這反映了霰彈槍和栓動步槍市場（我們並未真正參與其中）與 MSR 和槓桿步槍市場（我們繼續保持非常強大的市場地位）之間的差異。

As expected, average selling prices trended lower in the first quarter, declining 6.1% sequentially. Handgun ASPs were down 4% while long guns declined 13% due to mix. While the market remains highly promotional, our focus on new products, strong marketing campaigns such as the red, white, and big blue campaign we ran throughout July, and continued consumer preference for our brand have allowed us to participate in promotions more selectively. As a result, we maintained relatively healthy ASPs throughout the summer. With the typically busy fall and winter seasons now upon us, we continue to expect to maintain strong ASPs throughout fiscal 2026.

如預期，第一季平均售價呈下降趨勢，季減 6.1%。手槍平均售價下降了 4%，長槍平均售價下降了 13%，原因是槍枝種類混雜。儘管市場促銷活動仍然十分活躍，但我們專注於新產品，開展了強有力的營銷活動，例如我們在整個 7 月份開展的紅、白、藍主題活動，並且消費者對我們品牌的持續偏好，這使我們能夠更有選擇地參與促銷活動。因此，我們整個夏季都保持了相對健康的ASP（亞洲大豆種群）。隨著通常繁忙的秋季和冬季到來，我們預計在 2026 財年將繼續保持強勁的平均售價。

Moving now to market conditions, we continue to view the market as relatively quote unquote normal. It remains cyclical and reflects traditional seasonality throughout the year. While the current environment is more challenging than a few years ago, as we have seen many times before during these market cycles, underlying consumer demand is above what we saw before the last surge, as we now have more consumers who are participating in the category.

現在來看市場狀況，我們仍然認為市場相對正常。它保持週期性，並反映出全年傳統的季節性規律。雖然目前的市場環境比幾年前更具挑戰性，正如我們在以往的市場週期中多次看到的那樣，但潛在的消費者需求高於上次激增之前的水平，因為現在有更多的消費者參與到這個品類中來。

Through all the ups and downs of the market over time, our leadership position in key categories has endured, and feedback from our distributor and retail partners supports the view that our disciplined execution of our strategy continues to position Smith & Wesson at or near the top in the categories in which we compete.

儘管市場經歷了多年的起伏，但我們在關鍵品類中的領導地位依然穩固。經銷商和零售合作夥伴的回饋也印證了這一點：我們嚴格執行策略，使史密斯威森在所競爭的品類中始終處於領先地位或接近領先地位。

Innovation remains a cornerstone of that strategy, with new products accounting for 37.3% of sales in the first quarter. Underscoring this, we've seen a very positive initial reception to our SHIELD X, which we introduced in late July. And as I've said many times before, our award-winning engineering and design teams consistently deliver products that resonate with consumers. With a strong pipeline of new products upcoming, we will continue to invest in innovation to keep the line fresh and ensure that we maintain our leadership position.

創新仍然是該策略​​的基石，新產品在第一季的銷售額佔比高達 37.3%。由此可見，我們在 7 月下旬推出的 SHIELD X 獲得了非常積極的初步反響。正如我之前多次說過的那樣，我們屢獲殊榮的工程和設計團隊始終如一地交付能夠引起消費者共鳴的產品。隨著一系列新產品即將上市，我們將繼續投資創新，保持產品線的新鮮感，並確保我們保持領先地位。

Looking at inventory levels in the channel, distributor inventory is very healthy, with strong sell through of our products. Distributor inventory was down more than 13,000 units at the end of July compared with the end of fiscal 2025 and down more than 17,000 units year-over-year, which indicates strong demand for our products at the retail counter. Due to this clean inventory position, we are well placed to quickly convert incremental demand into shipments as we enter the typically busy firearm season.

從通路庫存水準來看，經銷商庫存狀況良好，我們的產品銷售情況強勁。截至 7 月底，經銷商庫存比 2025 財年末減少了 13,000 多件，比上年同期減少了 17,000 多件，這表明零售櫃檯對我們的產品有強勁的需求。由於庫存充足，我們能夠迅速將新增需求轉化為出貨，迎接通常繁忙的槍支銷售旺季。

As we now prepare for the traditionally stronger second half of the year, we remain disciplined in managing our business and our capital allocation strategy is unchanged: invest in our business, maintain our strong balance sheet and return value to stockholders.

現在，我們正為歷來較為強勁的下半年做準備，我們將繼續保持嚴謹的業務管理，我們的資本配置策略也保持不變：投資於我們的業務，保持我們強勁的資產負債表，並為股東創造價值。

In fiscal 2026, our internal investments continued to prioritize leveraging our state of the art facility in Tennessee, optimizing and modernizing several value added elements of our facility in Massachusetts, and investing in special initiatives to further enhance our brand and support our customers.

在 2026 財年，我們的內部投資繼續優先考慮利用我們在田納西州的先進設施，優化和現代化我們在馬薩諸塞州的設施的幾個增值要素，並投資於特別舉措，以進一步提升我們的品牌並支持我們的客戶。

On that note and before I hand the call over to Deana, I want to provide an update on a very special project that the team has been hard at work on at our Tennessee facility. For decades prior to its closure several years ago, the Smith and Wesson Academy in Springfield, Massachusetts was an industry staple, providing training for countless law enforcement officers, consumers, and agencies around the world.

說到這裡，在把電話交給迪安娜之前，我想向大家報告一下我們田納西工廠團隊一直在努力開展的一個非常特殊的項目。在幾年前關閉之前，位於馬薩諸塞州斯普林菲爾德的史密斯威森學院在幾十年間一直是行業支柱，為世界各地無數的執法人員、消費者和機構提供培訓。

Today, I'm thrilled to announce that the Smith & Wesson Academy is back and better than ever. This state of the art facility encompasses nearly 30 acres of purpose-built ranges, training facilities, fitness equipment to allow training under physical duress, classrooms, and even a two-story modular building rated for simunition live fire to allow situational training for law enforcement and military customers.

今天，我很高興地宣布，史密斯威森學院回歸了，而且比以往任何時候都更好。這座最先進的設施佔地近 30 英畝，包括專門建造的靶場、訓練設施、健身器材（可在身體壓力下進行訓練）、教室，甚至還有一座兩層模組化建築，可用於模擬實彈射擊，以便為執法和軍事客戶提供情境訓練。

The academy will be run by Mark Cochiolo, a true American hero. Mark is a retired US Navy SEAL veteran and firearms training expert. After proudly serving our country for 25 years, including with the prestigious SEAL Team 6, he spent the next 13 years of his career as one of the top firearms instructors at Basic Underwater Demolition Seal training, or BUDS, in San Diego, where he helped revamp the firearm training curriculum and train nearly 4,000 Navy Seal candidates.

這所學院將由真正的美國英雄馬克·科奇奧洛 (Mark Cochiolo) 負責營運。馬克是美國海軍海豹部隊退役老兵，也是一名槍械訓練專家。在為國家光榮服役 25 年（包括在著名的海豹突擊隊第 6 隊服役）之後，他在接下來的 13 年職業生涯中，擔任聖地亞哥基礎水下爆破海豹突擊隊訓練（BUDS）的頂級槍械教官之一，在那裡他幫助改進了槍械訓練課程，並訓練了近 4000 名海豹突擊隊候選人。

The goal with this new facility will be to provide yet another advantage to our current and prospective law enforcement, federal agency, and military customers who will all have access to Mark and his team's knowledge and our facilities free of charge.

這個新設施的目標是為我們現有和潛在的執法部門、聯邦機構和軍方客戶提供另一個優勢，他們都可以免費獲得馬克及其團隊的知識和我們的設施。

In addition, and in keeping with our goal to promote responsible firearms ownership, we aim to enhance the firearms proficiency of our loyal consumers who will be able to sign up for a variety of courses custom designed for any skill set from beginners to experts, and come to Smith & Wesson to learn from the best of the best. All of course while showcasing our world class firearms. We'll be hosting a grand opening celebration next Friday on September 12, and we're excited to share more details as we begin leveraging this amazing asset.

此外，為了貫徹我們促進負責任的槍支擁有的目標，我們致力於提高忠實消費者的槍支熟練程度，他們可以報名參加各種課程，這些課程是為從初學者到專家的任何技能水平量身定制的，他們可以來到史密斯威森公司向最優秀的人學習。當然，這一切都是為了展示我們世界一流的槍械。我們將於下週五，也就是 9 月 12 日，舉辦盛大的開幕慶典，我們很高興能與大家分享更多細節，因為我們將開始利用這項了不起的資產。

Finally, and as always, I just want to thank our entire team of talented Smith & Wesson employees for their tireless dedication to our brand and in putting their skills to work each and every day to make us successful. With that I'll turn the call over to, Deans to cover the financials.

最後，一如既往，我要感謝我們史密斯威森公司所有才華橫溢的員工，感謝他們為我們的品牌不懈努力，每天都運用他們的技能使我們取得成功。接下來我將把電話交給迪恩斯，由他來介紹財務狀況。

Thanks, Mark. Net sales for our first quarter of $85.1 million were $3.3 million or 3.7% below the prior year comparable quarter. During the quarter, inventory at distributors declined by over 10% from the end of the prior quarter and over 13% compared with the end of July 2024 in terms of actual units, indicating positive sell through of our products at retail and a good position for us as we look forward to the coming months.

謝謝你，馬克。第一季淨銷售額為 8,510 萬美元，比去年同期減少了 330 萬美元，降幅為 3.7%。本季度，經銷商的庫存量較上一季末下降超過 10%，較 2024 年 7 月底實際庫存量下降超過 13%，顯示我們的產品在零售通路銷售情況良好，展望未來幾個月，我們處於有利地位。

As expected, handgun ASPs declined slightly from Q4 levels due to promotions and continued strong demand for our lower priced products. Long gun ASPs decreased due to the mix of lower priced products and lower overall volume.

正如預期的那樣，由於促銷活動和市場對我們低價產品的持續強勁需求，手槍平均售價較第四季略有下降。由於低價產品組合和整體銷售下降，長槍平均售價下降。

Gross margin of 25.9% was 1.5% below the comparable quarter last year due primarily to decreased absorption on lower production and a 120 basis point negative impact from tariffs stemming primarily from steel, partially offset by lower promotion costs and lower federal excise taxes as a result of the favorable outcome of a recent audit.

毛利率為 25.9%，比去年同期下降 1.5%，主要原因是產量下降導致吸收率降低，以及主要來自鋼鐵的關稅造成了 120 個基點的負面影響，但促銷成本降低以及由於最近審計結果有利而導致的聯邦消費稅降低部分抵消了這些負面影響。

Operating expenses of $25 million for our first quarter were $680,000 lower than the prior year comparable quarter, with increases in R&D being more than offset by lower selling and marketing costs due to lower promotional costs and the absence of costs related to the NRA show, which was held in Q4 of last fiscal year.

第一季營運支出為 2,500 萬美元，比去年同期減少了 68 萬美元。研發支出的增加被銷售和行銷成本的降低所抵消，這主要得益於促銷成本的降低以及與上個財年第四季度舉辦的 NRA 展會相關的成本的減少。

The lower revenue and associated margin combined with an increase in interest expense due to higher outstanding borrowing, resulted in a $3.4 million net loss or an $0.08 loss per share. Cash used in operations for the first quarter was $8.1 million compared with $30.8 million in the prior year comparable quarter due to a net working capital decrease of $24 million.

收入和相關利潤率下降，加上未償借款增加導致利息支出增加，最終造成淨虧損 340 萬美元，即每股虧損 0.08 美元。由於淨營運資本減少了 2,400 萬美元，第一季營運活動所用現金為 810 萬美元，而去年同期為 3,080 萬美元。

Inventory increased $13.3 million during the current quarter versus $29.3 million in the prior year comparable quarter. As a reminder, we typically level load our factories and build inventory in our first quarter. We spent $4.3 million on capital projects this quarter compared with $4.7 million in the prior year comparable quarter and expect our capital spending for the year to be between $25 million, $30 million dollars. We paid $5.9 million in dividends and ended the quarter with $21 million in cash and investments and $95 million in borrowing on our line of credit.

本季庫存增加 1,330 萬美元，去年同期為 2,930 萬美元。再次提醒大家，我們通常會在第一季均衡安排工廠的生產負荷並建立庫存。本季我們在資本項目上花費了 430 萬美元，而去年同期為 470 萬美元，預計今年的資本支出將在 2,500 萬美元至 3,000 萬美元之間。我們支付了 590 萬美元的股息，本季末現金和投資總額為 2,100 萬美元，信貸額度借款額為 9,500 萬美元。

Finally, our Board has authorized a $0.13 quarterly dividend to be paid to stockholders of record on September 18 with payment to be made on October 2nd. Looking forward to our second quarter, we expect a normal seasonal environment, causing our second fiscal quarter sales to grow significantly over the first quarter and to land roughly at 3% to 5% below our Q2 fiscal 2025.

最後，董事會已批准向 9 月 18 日登記在冊的股東派發每股 0.13 美元的季度股息，股息將於 10 月 2 日支付。展望第二季度，我們預期正常的季節性環境將導致第二財季銷售額較第一財季大幅成長，並比 2025 財年第二季低 3% 至 5%。

With channel inventory at healthy levels, we don't expect inventory to have an impact positively or negatively on our second quarter. Although we remain cautious regarding the full fiscal year, due to macroeconomic conditions, we believe that our current product line up and planned new product introductions will allow us to maintain or expand our market share in the foreseeable future.

由於通路庫存處於健康水平，我們預期庫存不會對我們第二季的業績產生正面或負面的影響。儘管由於宏觀經濟狀況，我們對整個財政年度仍持謹慎態度，但我們相信，我們目前的產品陣容和計劃推出的新產品將使我們能夠在可預見的未來保持或擴大市場份額。

With the extended shutdown in August that we discussed last quarter resulting in lower absorption, combined with the impact of steel tariffs, we expect Q2 gross margin to be in line with Q1 gross margin. Operating expenses in Q2 will likely be about 20% higher than Q1, with half of that increase driven by profit sharing.

由於我們上季度討論過的 8 月的長期停工導致吸收率下降，再加上鋼鐵關稅的影響，我們預計第二季毛利率將與第一季毛利率持平。第二季的營運費用可能比第一季高出約 20%，其中一半的成長是由利潤分成造成的。

In addition, costs associated with the grand opening of the Smith & Wesson Academy combined with promotions, sales activity, and distribution costs associated with the increased volume will make up the remainder of the increase. Our effective tax rate is expected to be approximately 33%.

此外，史密斯威森學院盛大開幕的相關費用，以及與銷售增加相關的促銷、銷售活動和分銷成本，將構成剩餘的成長部分。我們的實際稅率預計約為 33%。

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

這位接線員，我們能否開放通話，接受我們分析師的提問？

(Operator Instructions) Mark Smith, Lake Street Capital.

（操作說明）馬克史密斯，湖街資本。

Hi guys. I wanted to ask first about ASPs, kind of both in hand gun and long gun just given kind of the competitive dynamics, but more so kind of where the consumer is, how do you feel about your pricing today on products, and do you feel there's any shifting that potentially could happen as we look through the rest of the year?

嗨，大家好。我首先想問一下關於平均售價（ASP）的問題，包括手槍和長槍，考慮到競爭格局，但更重要的是消費者的心理，您對目前產品的定價有何看法？您認為在今年剩餘的時間裡，定價是否有可能改變？

Hey Mark, yeah. We're pretty pleased with the ASPs, throughout the summers that's our typically slow season, throughout the year and firearms and, we were able to kind of maintain that, the promotional environment still remains fairly robust out there, but for us, as I said in the prepared remarks, with the innovation making up a significant portion of our pipeline of products and the strength of the -- even the core portfolio, we were able to be pretty selective. We did participate, but we were able to maintain those ASPs and as we now, go into the busy season, I think that goes pretty well for us to be able to hold those up throughout the rest of the year.

嘿，馬克，是的。我們對平均銷售價格 (ASP) 相當滿意。夏季通常是我們的淡季，而我們全年都保持著銷售淡季，槍支銷售也一直保持著淡季。促銷環境仍然相當強勁，但正如我在準備好的發言稿中所說，由於創新產品在我們產品線中佔據了相當大的比例，而且我們的核心產品組合也很強大，因此我們能夠非常謹慎地進行選擇。我們確實參與了，但我們能夠保持這些平均銷售價格 (ASP)，而且現在我們即將進入旺季，我認為這對我們來說非常有利，使我們能夠在一年中的剩餘時間裡保持這些價格。

Okay, and then I want to ask about the long gun business, you talked about, some markets where you don't really participate or have products, what opportunities do you have in expanding your product offerings maybe to hit some of these segments.

好的，接下來我想問您提到的長槍業務，您提到了一些您尚未涉足或沒有產品的市場，您有哪些機會可以拓展產品線，以打入這些細分市場？

Yeah. I mean, I think we've been, well, we have definitely been very successful with the 1854, entering into that lever action market, and I think that's kind of paved the way for us to continue expanding into more of the white space for us in the industry that we don't play in.

是的。我的意思是，我認為我們憑藉 1854 型步槍進入槓桿式步槍市場，取得了巨大的成功，我認為這為我們繼續拓展我們尚未涉足的行業空白領域鋪平了道路。

So, we're we continue, we're still expanding that, lever action platform, there's two more calibers that we're still kind of working on filling out and those will be coming here very shortly. But, and then after that it's, on to the next thing.

所以，我們繼續，我們仍在擴展槓桿式步槍平台，還有兩種口徑我們正在努力完善，它們很快就會面世。但是，之後就又要去做下一件事了。

Perfect. And the last one for me is just as we look out to changes in regulations with the recent tax law. Is there opportunities for some NFA items, potentially, suppressors and SBRs, for some higher demand as we move into January.

完美的。最後一點，也是我們關注近期稅法所帶來的監管變化時需要考慮的一點。隨著一月份的到來，一些 NFA 物品（例如消音器和短管步槍）的需求可能會增加，這是否會帶來一些機會？

Yeah, good question. For sure, I think there's a lot of pent up demand there in the suppressor market as folks are kind of waiting for that law to go into effect in January, so I think from a long term perspective bodes very well for us, with the Gemtech brand. So we're already seeing some movement there with some promotions on, early discounts and on the tax stamp and some promos that we're running with some of our some of our firearm or our suppressor retailers and, I think that's an early indication that should be a pretty healthy market coming in.

嗯，問得好。當然，我認為消音器市場存在很大的潛在需求，因為大家都在等待這項法律在 1 月生效，所以從長遠來看，這對我們 Gemtech 品牌來說是個非常好的預兆。所以我們已經看到一些動向，例如一些促銷活動、早鳥折扣、稅票優惠，以及我們與一些槍支或消音器零售商合作開展的一些促銷活動，我認為這預示著一個相當健康的市場即將到來。

Excellent. Thank you.

出色的。謝謝。

Steve Dyer, Craig Hallam.

史蒂夫戴爾，克雷格哈勒姆。

Hey, thanks. This is Matthew Robb on for Steve. I just want to hone in on the legacy products, on my math legacy products were actually up very slightly year over year in the quarter. I guess, two sort of questions there. One, what do you credit the better performance to in the quarter and then two, how do you feel about getting through the rest of that inventory as we look towards the back half of the year?

嘿，謝謝。這裡是馬修羅布，替史蒂夫為您報道。我只想專注於傳統產品，根據我的計算，傳統產品在本季實際上比去年同期略有成長。我想，這裡有兩個問題。第一，您認為本季業績改善的原因是什麼？第二，展望下半年，您對消化剩餘庫存有何看法？

Thanks Matthew. Yeah, the legacy products did very well for us, we continue to gain share there. I think, that's a combination of, the strength of the brand, we are definitely taking share in that category, of the more in line products, including the new stuff. And we continue to see that we have more runway there to go as we go through the rest of the year. And then from an inventory perspective, that we're hyper focused on that this year and kind of, bringing our internal inventories, kind of back down again. Just to be completely honest, we ended last year with maybe a little bit more than we wanted, and that I'll just remind you that for us in the firearms industry that's not necessarily a concern. We obviously have a strong balance sheet and we're able to -- we're able to kind of navigate the ups and downs of the of the marketplace pretty well I think we've proven over time and for us now that just means you know again these products, there's no expiration date on our inventory and make some adjustments to the production run rate and bring that down throughout the rest of the year.

謝謝你，馬修。是的，傳統產品表現非常好，我們繼續擴大市場份額。我認為，這是品牌實力和我們在該類別（包括新產品）中佔據市場份額共同作用的結果。而且我們預計，在今年剩下的時間裡，我們還有更多的發展空間。從庫存的角度來看，我們今年格外關注這一點，並努力將內部庫存降低迴來。坦白說，我們去年的表現可能比預期略好一些，但我只想提醒大家，對於我們槍械行業來說，這並不一定是一個令人擔憂的問題。我們顯然擁有強勁的資產負債表，而且我們能夠——我們能夠很好地應對市場的起伏，我認為我們已經隨著時間的推移證明了這一點，對我們來說，這意味著，你知道，這些產品，我們的庫存沒有有效期，我們可以對生產運行速度進行一些調整，並在今年剩餘的時間裡降低生產速度。

Sure, that's great. And then just on promos, really thinking about the back half of the year, should we expect promo activity to accelerate to aid the inventory reductions, or should we expect promos to remain pretty rational, and then maybe comparing that cadence to last year would be helpful. I mean it sounds like you're being pretty thoughtful about promos in the near term, but any other thoughts there would be great.

當然，那太好了。然後，就促銷而言，認真考慮下半年的情況，我們是否應該預期促銷活動會加速以幫助減少庫存，還是應該預期促銷活動會保持相當理性？然後，將這種節奏與去年進行比較可能會有所幫助。我的意思是，聽起來你對近期促銷活動考慮得相當周全，但如果還有其他想法，那就太好了。

Yeah. On the promotional side, I don't foresee any need for us to be leaning in there any more than we already have throughout the summer as I mentioned, we are participating, we're just doing a very thoughtful manner. A lot of conversations internally about, maybe a couple pockets here and there where we want to, promote, but I think you can kind of expect that our ASPs will kind of hold up throughout the rest of the year, we'll participate, but I think we're probably in a little bit better position, just given the strength of the brand and, again, strong balance sheet where we can kind of be a little bit more measured and in our participation. So we'll participate but I don't think you should expect that we're going to have a significant increase as we go through the back half.

是的。在宣傳推廣方面，我預計我們沒有必要比整個夏天已經投入的精力更多，正如我之前提到的，我們正在參與，只是我們採取了一種非常謹慎的方式。內部有很多關於推廣的討論，也許我們會在一些特定領域進行推廣，但我認為大家可以預期，我們的平均售價在今年餘下的時間裡會保持穩定，我們會參與其中，但我認為鑑於我們強大的品牌實力和穩健的資產負債表，我們現在的處境可能會更好一些，這讓我們在參與推廣方面可以更加謹慎。所以我們會參加，但我認為你們不應該指望我們在下半程會有顯著的成長。

Okay, that's great. Thank you very much.

好的，太好了。非常感謝。

Thank you. And we have reached the end of the question and answer session, and I would like to turn the floor back to Mark Smith for closing remarks.

謝謝。問答環節到此結束，現在我想把發言權交還給馬克史密斯，請他作總結發言。

Thank you, operator and thanks everyone for joining us today and your interest in our company. We look forward to speaking with everybody again next quarter.

謝謝操作員，也謝謝各位今天蒞臨現場，感謝你們對我們公司的關注。我們期待下個季度再次與大家交流。

Thank you. This concludes today's conference and you may disconnect your line at this time. Thank you for your participation. Have a great day.

謝謝。今天的會議到此結束，您可以斷開線路了。感謝您的參與。祝你有美好的一天。