Smith & Wesson Brands Inc (SWBI) 2026 Q4 法說會逐字稿

Good day, everyone, and welcome to the Smith & Wesson Brands fourth-quarter and full fiscal 2026 financial results conference call. This call is being recorded.

各位好，歡迎參加 Smith & Wesson Brands 2026 會計年度第四季及全年財務業績電話會議。本次電話會議將被錄音。

And 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.

現在，我想把電話交給 Smith & Wesson 的總法律顧問 Kevin Maxwell，由他向我們提供一些關於今天電話會議的資訊。

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, strategies, market share, demand, consumer preferences, inventory conditions for our products, growth opportunities and trends, and industry conditions in general.

謝謝，大家下午好。我們今天的發言可能包含前瞻性陳述。我們使用「預期」、「推估」、「估計」、「預計」、「打算」、「相信」以及其他類似用語，旨在識別前瞻性陳述。前瞻性陳述也可能包括關於我們的產品開發、策略、市占率、需求、消費者偏好、我們產品的庫存狀況、成長機會與趨勢，以及整體產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.

前瞻性陳述代表我們目前對未來的判斷，並受風險與不確定性影響，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內容存在重大差異。這些風險與不確定性已在我們向 SEC 提交的文件中說明；相關文件可在我們網站上取得，並可一併取得今日電話會議的重播。我們沒有義務更新前瞻性陳述。

We reference certain non-GAAP financial results. 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.

我們會提及某些非 GAAP 財務結果。GAAP 財務衡量指標與非 GAAP 財務衡量指標之間的調節表，可在我們的 SEC 申報文件以及今日的財報新聞稿中找到，兩者皆可於我們網站取得。此外，當我們提及 EPS 時，一律指完全稀釋後 EPS；任何提及 EBITDAS 皆指調整後 EBITDAS。

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.

我想提醒各位，當我們討論 NICS 結果時，我們指的是「調整後 NICS」，這是一項由美國全國射擊運動基金會（National Shooting Sports Foundation）根據 FBI NICS 資料發布的指標。調整後 NICS 會剔除非為購買槍枝目的而進行的背景審查。

Adjusted NICS is generally considered the best available proxy for consumer firearms 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.

調整後 NICS 通常被認為是在零售端衡量消費者槍枝需求的最佳可得替代指標。由於我們僅將槍枝移轉給執法機關以及聯邦許可的經銷商與零售商，而非終端消費者，因此我們認為 NICS 一般不會在任何特定期間與我們的出貨量或市占率直接相關，主要原因在於通路中的庫存水位。

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.

今天與會的有我們的總裁兼執行長 Mark Smith，以及我們的財務長 Deana McPherson。接下來，我把電話交給 Mark。

Thank you, Kevin, and thanks, everyone, for joining us today. Our excellent fourth-quarter and full-year fiscal 2026 results showcase our team's remarkable execution on our strategic priorities and the enduring power of our iconic brand. Fueled by strong consumer demand for our products and our ability to leverage our flexible manufacturing operations, we are sustaining our market share growth momentum, and our Q4 performance surpassed our expectations on every key metric.

謝謝你，Kevin，也感謝各位今天加入我們。我們在 2026 會計年度第四季及全年取得的優異成果，展現了團隊在策略重點上的卓越執行力，以及我們經典品牌的持久力量。在消費者對我們產品的強勁需求，以及我們善用彈性製造營運能力的帶動下，我們持續維持市占率成長動能，而第四季在每一項關鍵指標上的表現都超出我們的預期。

Net sales increased nearly 27% year over year, adjusted EBITDAS increased 31.7%, and adjusted EPS was up nearly 77%. We also delivered another strong quarter of cash generation, with cash from operations increasing by nearly $34 million compared to last year. These numbers are a direct result of the team's focus on our clearly defined strategy of growing market share through innovation and operational execution.

淨銷售額年增近 27%，調整後 EBITDAS 成長 31.7%，調整後 EPS 則上升近 77%。我們也再度交出強勁的現金創造表現，營運活動現金流量較去年增加近 3,400 萬美元。這些數字直接反映團隊專注於我們清晰界定的策略：透過創新與營運執行來提升市占率。

For the full fiscal year, our top-line revenue was up over 10% year over year, adjusted EPS increased more than 25%, and adjusted EBITDAS was up 7%. We also continued to fortify our balance sheet, generating over $114 million in cash from operations, retiring $60 million in debt on our credit facility, and closing the year with just $20 million in debt versus $80 million at the end of fiscal 2025.

就全年而言，我們的營收（top-line）年增超過 10%，調整後 EPS 增加逾 25%，調整後 EBITDAS 成長 7%。我們也持續強化資產負債表，營運活動產生超過 1.14 億美元現金，償還循環信貸額度下 6,000 萬美元債務，並在年度結束時僅剩 2,000 萬美元債務，相較於 2025 會計年度末的 8,000 萬美元。

Throughout the past year, we have been highlighting the tremendous results that we've been achieving in market share growth, and this momentum certainly continued in our fourth quarter. On the Handgun side, our unit shipments into the sporting goods channel surged 23% versus a NICS increase of only 1.1%, while channel inventory remained flat, indicating strong consumer demand for our products is driving excellent sell-through and substantial market share capture at the retail counter.

在過去一年中，我們一直強調我們在市占率成長方面所取得的卓越成果，而這股動能在第四季也確實延續。在手槍方面，我們對運動用品通路的出貨量年增 23%，而 NICS 僅增加 1.1%；同時通路庫存維持持平，顯示消費者對我們產品的強勁需求正帶動優異的終端銷售（sell-through），並在零售端大幅取得市占。

We continue to lead the concealed carry market with our Bodyguard 2.0 and Shield Pistol lines. And with the introduction of our newest M&P pistols from the HD Steel to Competitor to the Carry Comp series, we are now rounding out the innovation across the categories within the semi-auto pistol market, which is only accelerating our market share growth.

我們以 Bodyguard 2.0 與 Shield Pistol 產品線持續領先隱蔽攜帶（concealed carry）市場。隨著我們最新 M&P 手槍系列的推出，從 HD Steel、Competitor 到 Carry Comp 系列，我們如今已在半自動手槍市場各細分類別中完善創新布局，進一步加速我們的市占率成長。

On the Revolver side, we are the market leader and have been for years. But true to our disciplined focus on the long term, the team has been hard at work on renewing and revitalizing the line to maintain our leadership position. And we are seeing tremendous success with our new product launches, particularly our No Lock series, Mountain Guns, and UC J-Frames.

在左輪手槍方面，我們是市場領導者，而且多年來一直如此。但秉持我們對長期的紀律性專注，團隊一直努力更新並振興產品線，以維持我們的領導地位。我們的新產品上市取得了極大成功，尤其是 No Lock 系列、Mountain Guns，以及 UC J-Frames。

In Long Guns, our unit shipments into the sporting goods channel increased 28.7% versus NICS rising 3.5%. In particular, we saw strong growth in the MSR category in Q4. As a reminder, Long Guns represent a relatively small portion of our overall sales, only approximately 17% in fiscal 2026. That said, we continue to build momentum in the Hunting segment and will continue to look for opportunities to fill in this white space.

在長槍方面，我們對運動用品通路的出貨量增加 28.7%，而 NICS 上升 3.5%。尤其在第四季，我們在 MSR 類別看到強勁成長。提醒一下，長槍在我們整體銷售中占比相對較小，在 2026 會計年度僅約 17%。即便如此，我們仍持續在狩獵（Hunting）細分市場累積動能，並將持續尋找機會填補這一市場空白（white space）。

So the net result for the year - Smith & Wesson far outpaced the broader market, with our total shipments into the channel up by 14.7% for the full fiscal year, while NICS decreased by 2.3%. And I'll just highlight that in that same time period, channel inventory remained flat. Again, these impressive numbers are a direct result of our purposeful focus and execution on innovation, marketing, operational excellence, and, of course, the power of the iconic Smith & Wesson brand.

因此，全年淨結果是——Smith & Wesson 的表現遠超整體市場：我們全年對通路的總出貨量成長 14.7%，而 NICS 則下降 2.3%。我也要特別指出，在同一期間，通路庫存維持持平。再次強調，這些亮眼數字直接來自我們在創新、行銷、營運卓越，以及當然還有經典 Smith & Wesson 品牌力量上的明確聚焦與執行。

Just to underscore that point, new products accounted for nearly 38% of our shipments during Q4 and 38% for the full fiscal year. I'm exceptionally proud of our talented product management, engineering, design, and production teams who consistently create and reliably manufacture products that resonate with our customers while upholding the world-class quality and dependability that they expect from us.

為了進一步強調這一點，新產品在第四季占我們出貨量近 38%，全年也達到 38%。我對我們才華洋溢的產品管理、工程、設計與生產團隊感到無比自豪；他們持續打造並可靠地製造能引起客戶共鳴的產品，同時維持客戶對我們所期待的世界級品質與可靠性。

And meeting those expectations for innovation and quality allows us to not only take a unit share but maintain strong average selling prices. Sequentially in Q4, Handgun ASPs were up 4.3%, and Long Gun ASPs increased 4.5%.

而滿足市場對創新與品質的期待，使我們不僅能取得單位市占，亦能維持強勁的平均銷售價格。按季比較，第四季手槍ASP上升4.3%，長槍ASP上升4.5%。

Turning now to inventory, we closed Q4 with $156 million in internal inventory, down from $190 million a year ago. Our strong balance sheet and robust sales and operations planning process, which aligns production to forward forecasts across each of our product lines, has positioned us exceptionally well as we enter fiscal 2027.

接著談庫存，我們在第四季結束時的內部庫存為1.56億美元，低於一年前的1.90億美元。我們強健的資產負債表與穩健的銷售與營運規劃流程（將各產品線的生產與前瞻預測對齊），使我們在邁入2027會計年度時具備極佳的有利位置。

As I spoke about earlier, channel inventory remains flat in units relative to both Q3 and last year, again signaling healthy sell-through at retail and a very clean position as we enter FY27. Looking forward, we expect a positive momentum to carry into FY27. While we anticipate and are experiencing a typical summer season from a demand perspective, we're continuing to see relatively strong demand for our products, and therefore expect our Q1 to significantly outperform last year, as Deana will cover in a few minutes.

如我先前提到的，通路庫存以單位數計相較第三季與去年皆持平，再次顯示零售端銷售去化健康，且在進入FY27時處於非常乾淨的狀態。展望未來，我們預期正向動能將延續至FY27。雖然從需求角度來看，我們預期並且正在經歷典型的夏季淡季，但我們仍持續看到對我們產品相對強勁的需求，因此預期第一季將顯著優於去年，Deana將在幾分鐘後說明。

I want to emphasize that we believe the market share gains we've secured are the product of years of methodical execution of our innovation strategy, marketing, sales relationships, and focus on operational excellence, as well as our commitment to creating products that meet and surpass consumer expectations. We remain focused on preserving this momentum and maintaining our leadership position in the market.

我想強調，我們認為已取得的市占提升，是多年來有條不紊地執行創新策略、行銷、銷售關係與營運卓越聚焦的成果，同時也來自我們致力於打造符合並超越消費者期待的產品。我們仍將專注於維持這股動能，並保持我們在市場中的領導地位。

Given what we see on the horizon, we are planning to make investments in our Springfield facility during fiscal 2027, which will increase our capital spend this year as compared to our historical averages. This represents a strategic investment concentrated on expanding our capacity and increasing operational efficiency.

基於我們對未來趨勢的觀察，我們計畫在2027會計年度對Springfield廠進行投資，這將使我們今年的資本支出高於歷史平均水準。這是一項策略性投資，重點在於擴充產能並提升營運效率。

We've consistently delivered high returns on our investments in the business and are confident this latest initiative will do so as well, along with further strengthening our foundation for sustained long-term growth.

我們一向在對業務的投資上交出高報酬，並有信心這項最新計畫也將如此，同時進一步強化我們持續長期成長的基礎。

In closing, fiscal 2026 was an outstanding year for Smith & Wesson. We delivered strong results across every dimension of our business, from revenue to profitability, and from cash flow to debt reduction. We outperformed our competitors in our core categories and achieved meaningful progress in segments that we hadn't historically competed in.

總結而言，2026會計年度對Smith & Wesson而言是非常出色的一年。我們在業務各個面向都交出強勁成果，從營收到獲利能力，從現金流到負債降低。我們在核心品類中表現優於競爭對手，並在過去並非我們傳統競爭領域的細分市場取得了具體進展。

We launched our state-of-the-art Smith & Wesson Academy, further strengthening our commitment to our professional customers and providing world-class training to our consumers. We introduced dozens of new products, which were enthusiastically received by our customers.

我們推出最先進的Smith & Wesson Academy，進一步強化我們對專業客戶的承諾，並為消費者提供世界級訓練。我們推出數十款新產品，並獲得客戶熱烈回響。

We're making significant investments back into the business to optimize operations. And as I said earlier, this momentum continues into FY27. The combined strength of our brand, our team, our disciplined strategic focus, and our strong balance sheet puts us in an excellent position to continue creating long-term value for our stockholders.

我們正將大量投資回饋到業務中，以優化營運。而如我先前所說，這股動能將延續至FY27。我們品牌、團隊、嚴謹的策略聚焦與強健資產負債表的綜合實力，使我們處於極佳位置，得以持續為股東創造長期價值。

Finally, I cannot stress enough that all of this is only possible through the amazing team of employees that work tirelessly every day of the year across every function of our business. As always, I want to thank them, each and every one, for their unwavering dedication and for applying their skills every single day to drive our success.

最後，我再怎麼強調都不為過：這一切之所以可能，完全仰賴我們優秀的員工團隊，一年365天在公司各項職能上不懈努力。一如既往，我要感謝他們每一位，感謝他們堅定不移的投入，並每天運用專業技能推動我們的成功。

With that, I'll turn the call over to Deana to review the financials.

接下來我把電話交給Deana，請她回顧財務表現。

Thanks, Mark. Please note that all comparisons are between the fourth quarter of fiscal 2026 and the fourth quarter of fiscal 2025, unless otherwise stated.

謝謝你，Mark。請注意，除非另有說明，所有比較皆為2026會計年度第四季與2025會計年度第四季之間的比較。

Net sales of $178.4 million were $37.6 million, or 26.7% above the prior year, with new products making up 37.5% of total revenue for the quarter. As Mark noted, our outperformance was mostly driven by Handgun shipments, which represented over 80% of our units shipped.

淨銷售額為1.784億美元，較去年增加3,760萬美元（或26.7%），其中新產品占本季總營收的37.5%。如Mark所提，我們的優於預期表現主要由手槍出貨帶動，手槍出貨占我們出貨單位數的80%以上。

Our Handgun unit sales into the sporting goods channel increased 23.2% over the prior year, while NICS increased only 1.1%, with nearly no change in channel inventory, demonstrating strong consumer preference for our products. We also benefited in Q4 from a short-term increase in Long Gun demand, although the volumes there are much lower than in our Handgun line.

我們在運動用品通路的手槍單位銷售量較去年成長23.2%，而NICS僅成長1.1%，且通路庫存幾乎沒有變化，顯示消費者對我們產品的偏好強勁。第四季我們也受惠於長槍需求的短期上升，儘管其量體遠低於我們的手槍產品線。

Gross margin of 29.8% was 1 percentage point above last year, reflecting a 23% increase in production volume, lower promotions, and a 2% to 3% price increase from January, partially offset by increased volume-related spending, tariffs and inventory reserves. Operating expenses of $31.7 million for our fourth quarter were $4.3 million higher than the prior year due to increased profit-related compensation costs, including profit-sharing and incentives, increased freight-related costs, and higher R&D costs.

毛利率為29.8%，較去年高出1個百分點，反映生產量增加23%、促銷減少，以及自1月起2%至3%的漲價；但部分被與出貨量相關的支出增加、關稅與存貨備抵所抵銷。第四季營業費用為3,170萬美元，較去年增加430萬美元，主因為與獲利相關的薪酬成本增加（包含分紅與獎勵）、運費相關成本增加，以及研發成本提高。

Net income of $16.2 million in the fourth quarter was $7.6 million more than the prior year due to a combination of higher net sales and gross margin, partially offset by increased profit-related compensation costs. Earnings per share of $0.36 was above the prior year of $0.19.

第四季淨利為1,620萬美元，較去年增加760萬美元，主要來自淨銷售與毛利率提升的綜合影響，部分被與獲利相關的薪酬成本增加所抵銷。每股盈餘為0.36美元，高於去年的0.19美元。

Turning to cash flows, during the quarter we generated $74.6 million in cash from operations and spent $4.8 million on capital projects, resulting in net free cash of $69.7 million. We paid $5.8 million in dividends and repaid $55 million on our revolving line of credit. We ended the quarter with $28.2 million in cash and $20 million in borrowings on our line, representing a net cash position of $8.2 million.

接著看現金流，本季我們自營運產生7,460萬美元現金，並在資本專案上支出480萬美元，淨自由現金為6,970萬美元。我們支付580萬美元股利，並償還循環信用額度55百萬美元。本季末現金為2,820萬美元，信用額度借款2,000萬美元，淨現金部位為820萬美元。

During our full fiscal year, we generated $114 million in cash from operations and spent $23.7 million in capital projects, resulting in net free cash generated of $90.4 million. Our Board has authorized our quarterly dividend of $0.13 to be paid to stockholders of record on July 1, with payment to be made on July 15.

在整個會計年度內，我們自營運產生1.14億美元現金，並在資本專案上支出2,370萬美元，淨自由現金產生為9,040萬美元。董事會已核准每季股利0.13美元，將於7月1日對在冊股東發放，並於7月15日支付。

Looking forward to fiscal 2027, we expect firearm industry demand in fiscal 2027 to continue to be healthy and slightly higher than in fiscal 2026. Combined with our market share growth, we expect our full fiscal 2027 revenue to grow in mid-single digits compared to full fiscal 2026. We believe our first-quarter revenues will be approximately 15% to 20% higher than last year, with margins a point or two higher on increased volume. As a reminder, our prior results were negatively impacted by a reduction in channel inventory, which we are not anticipating this year.

展望2027會計年度，我們預期2027會計年度槍械產業需求將持續健康，並較2026會計年度略為提高。結合我們的市占成長，我們預期2027會計年度全年營收相較2026會計年度全年將以中個位數百分比成長。我們認為第一季營收將較去年約高出15%至20%，在出貨量增加帶動下，毛利率也將提高1到2個百分點。提醒一下，我們先前的業績曾受到通路庫存下降的負面影響，而今年我們不預期會出現此情況。

With regard to average selling prices, we expect our first quarter to be sequentially lower, in the 5% range, with the decline in Handguns being partially offset by an increase in Long Guns, both due to mix of products sold. Operating expenses for the first quarter are expected to be approximately 20% higher than last year's first quarter due to volume and profit-related costs, such as freight, customer marketing allowances, and profit sharing. Finally, our effective tax rate is expected to be approximately 30%, which is higher than in fiscal 2026 due to prior-year favorable adjustments that impacted 2026.

就平均售價（ASP）而言，我們預期第一季將較上一季下滑，約在 5% 的幅度；其中手槍（Handguns）的下滑將因長槍（Long Guns）的增加而部分抵銷，兩者皆主要受已售產品組合影響。第一季的營業費用預期將較去年第一季高出約 20%，主要因出貨量與獲利相關成本增加所致，例如運費、客戶行銷補貼，以及利潤分成。最後，我們的有效稅率預期約為 30%，高於 2026 會計年度，原因是前一年度的有利調整影響了 2026 年。

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

那麼，麻煩接線員，請開放讓分析師提問。

(Operator Instructions) Mark Smith, Lake Street Capital.

(接線員指示) Mark Smith，Lake Street Capital。

I want to ask first off, you guys had mentioned meaningful progress in segments you haven't historically competed in. Can you elaborate a little bit more on where all you saw incremental growth?

我想先問一下，你們提到在過去歷來未曾競爭的細分領域取得了顯著進展。能否再多說一些，你們在哪些方面看到了增量成長？

Hey Mark, yeah, so obviously the biggest one is in the 1854 with the entry into that Hunting category that we traditionally had not participated in. So continuing to see a really nice market share there for a product that we just introduced within the last 18 months. So continues to do really well for us, really pleased with the progress there.

嗨 Mark，是的，最主要的當然是在 1854，因為我們進入了狩獵（Hunting）這個我們傳統上未曾參與的品類。我們持續看到這款在過去 18 個月內才推出的產品取得非常不錯的市占率。所以它對我們來說表現持續很好，我們也對那裡的進展非常滿意。

And then also on the Long Gun side, on the carbine side, continue to do really well really well with that FPC. So just some new entrants into some of the categories that we do play in, but I guess a subcategory within the carbines and then just brand new category for us in the Hunting side.

另外在長槍方面、在卡賓槍（carbine）這一側，我們的 FPC 也持續表現非常、非常好。所以這算是我們既有參與品類中的一些新進入者——我想是在卡賓槍裡的一個子類別——以及在狩獵端對我們而言則是全新的品類。

Perfect. And then looking at gross profit margin, I know you discussed it a little bit on the call, but I wanted to dig in more on that, just on kind of what helped drive the gross profit margin improvement in fourth quarter, maybe how much of that was just volume versus the 2% to 3% price increase or any other moving parts that help drive some of that outperformance?

很好。再來看毛利率，我知道你們在電話會議中稍微談到，但我想再深入一點：第四季毛利率改善主要是哪些因素帶動？其中有多少只是出貨量因素，多少來自 2% 到 3% 的漲價，或還有其他變動因素促成這樣的優於預期表現？

Yeah. I mean, there's going to be some tailwinds and headwinds there, obviously. Headwinds continue to be the, you know, the tarriffs. But tailwinds there, obviously margin. I think you well know that as a major manufacturing operation, more volume drives more absorption. And then obviously that 2% to 3% price increase that went through very smoothly back in December obviously helped there as well. So a little bit of combination of all of those.

是的。我的意思是，顯然會同時有順風與逆風。逆風仍然是——你知道——關稅（tariffs）。但順風方面，當然是毛利率。我想你很清楚，作為大型製造營運，產量越高就能帶來更高的固定成本吸收。另外，12 月那次 2% 到 3% 的漲價推行得非常順利，也明顯有所助益。所以是上述因素的綜合。

I think you'll remember, Mark, that in fiscal '27 -- fiscal '25, we were pulling down inventory, so production levels were quite a bit lower. And we sort of got to a place in fiscal '26 where we were comfortable with inventory, and then we were increasing inventory to match. I think we talked about that maybe in the last couple of quarters. So that really increase in -- introduction in volume really gave us a lift on the margin side.

Mark，我想你會記得，在 2027 會計年度——呃，在 2025 會計年度，我們在去化庫存，所以生產水準低了不少。到了 2026 會計年度，我們的庫存水位已經達到我們覺得舒適的程度，接著我們開始增加庫存以匹配需求。我想我們在過去幾季可能也談過。因此，這樣的——產量提升、出貨量增加——確實在毛利率端給了我們助力。

Okay. And then just looking at the price increases that were taken in January. Any thoughts on kind of how those were received by distributors? And then just --

了解。再來看 1 月採取的漲價。你們對經銷商對此的接受度有什麼看法？然後就是--

Yeah, the price increase in January. Sorry, go ahead.

是的，1 月的漲價。抱歉，你繼續。

Go ahead.

你先說。

Price increase in January went through really, Mark, without any fanfare whatsoever. So I think that just kind of speaks to again as we talk about a lot to power of the brand and that innovation strategy of introducing new products that are going to resonate with that consumer and that's just those two things together really hold those ASPs up nicely, so.

Mark，1 月的漲價基本上沒有引起任何波瀾就順利通過了。我想這也再次說明——就像我們常談的——品牌的力量，以及我們以創新策略推出能與消費者產生共鳴的新產品；這兩者結合起來，確實能很好地支撐平均售價（ASP），所以。

Okay perfect. And yeah, new products was kind of my other part of that question, just how much of that was kind of driven by new products and versus kind of across the board, price increases?

好的，很好。是的，新產品其實是我那個問題的另一部分：其中有多少是由新產品帶動的，而不是全面性的漲價所驅動？

Yeah. I think it's important to note that the new products also help the core line because it just elevates the overall perception with the consumer of the brand itself. So you know that the -- a lot of those new products, I think you've seen them out there, the HD, the Competitor, I mentioned some of them on the prepared remarks.

是的。我認為重要的是，新產品也會帶動核心產品線，因為它會提升消費者對品牌本身的整體觀感。所以你知道——很多新產品，我想你也在市場上看到了，像是 HD、Competitor，我在準備好的發言中也提到了一些。

But you know it's just -- and of course the marketing power that we have with our team here and really being the number one voice in the firearms industry really helps the overall brand. So it's not just new products, it helps the core line as well.

但你知道，這就是——當然，我們團隊在行銷上的能量，以及我們確實是槍械產業中最具影響力的第一聲量，對整體品牌也很有幫助。所以不只是新產品，它也同樣能帶動核心產品線。

Okay. I think the last one for me. Just you guys did a good job cleaning up the balance sheet here, paying down debt, curious your thoughts around capital allocation. It sounds like some investments back into to Springfield, but then maybe how you weigh the dividend, buybacks, or any other investments as we look forward here to fiscal '27?

好的。我這邊最後一題。你們在改善資產負債表、償還債務方面做得很好，我想了解你們對資本配置的想法。聽起來會有一些回投到 Springfield 的投資，但往前看 2027 會計年度，你們如何權衡股利、庫藏股回購，或其他投資？

Sure, yeah. I'll take that in a couple of sections. The investments back into Springfield I think it's just a reflection of the business and our comfort level with how sustainable that growth is. I think you know our flexible manufacturing model, we've always got a mix of internal and external machining capacity. So as we look at the performance of the core line and the products that we have out there in the marketplace today, market share growth, how sustainable that is, and then we're looking down the line at that new product pipeline, we're always looking at what is the optimal balance of internal versus external there.

當然。我會分幾個部分回答。回投 Springfield 的投資，我認為反映了我們對業務的看法，以及我們對這種成長可持續性的信心程度。我想你知道，我們的彈性製造模式一直都是內部與外部加工產能並存的組合。因此，當我們觀察核心產品線與目前在市場上的產品表現、市占成長及其可持續性，同時再往後看新產品管線時，我們一直在評估內部與外部之間的最佳平衡。

So to the extent we see that being sustainable, we're going to make the investments internally to be able to increase our capacity. And then also some of the new products coming down the line, we need some additional capabilities as well. So just give you a little color there.

因此，只要我們認為這樣的趨勢具有可持續性，我們就會在內部進行投資，以提升產能。另外，隨著一些新產品陸續推出，我們也需要一些額外的能力。以上提供你一些補充說明。

We're, right now, the initial phase is about 20 new CNC machines. You can expect about half of those will be online this summer, and the remaining throughout the rest of this calendar year. So by the end of the calendar year, they should all be operational. And then the impact to the CapEx spend for this year, I think, Mark, you can expect another probably an additional about $20 million above our usual $25 million to $30 million.

我們目前正處於初期階段，約有 20 台新的 CNC 機台。您可以預期其中大約一半會在今年夏天上線，其餘則會在本曆年剩餘時間陸續上線。因此到本曆年年底，它們應該都會投入運作。至於今年資本支出（CapEx）的影響，我想，Mark，您可以預期大概會比我們一貫的 2,500 萬至 3,000 萬美元再多增加約 2,000 萬美元。

So with that said, back to the capital allocation that you just mentioned, we've always talked about capital allocation priorities is first and foremost invest back in the business where we see the best return. And obviously, this is going to have a pretty healthy return for us.

因此，回到您剛提到的資本配置，我們一直談到資本配置的優先順序，首要是把資金再投回業務中、投向我們看到報酬最佳的地方。而很明顯地，這項投資將為我們帶來相當可觀的回報。

So that's going to be the focus this year. But we still do have authorization on the buyback from the Board. So we'll continue to be opportunistic there if there's an opportunity, it's still on the table. And then the dividend, as Deana just covered, we still remain committed to the dividend.

所以今年的重點會放在這裡。不過，我們仍然獲得董事會授權進行庫藏股回購。因此若有機會，我們仍會把握時機、採取機會主義式的回購；這仍在考量範圍內。至於股利，如同 Deana 剛剛說明的，我們仍然致力於維持股利政策。

Rommel Dionisio, Aegis Capital Corporation.

Rommel Dionisio，Aegis Capital Corporation。

Did I hear you say correctly that much of the capital expansion or capital expenditure this year would be in Springfield and not in Tennessee? I wonder if you could just clarify that and just maybe the thought behind kind of reinvesting in Springfield as opposed to the newer facility?

我是否聽您說得沒錯：今年大部分的產能擴張或資本支出會在 Springfield，而不是在田納西州？我想請您澄清一下，並談談為何選擇再投資 Springfield，而不是較新的廠房？

Sure. Thanks, Rommel. So as -- I think you're probably aware, our Springfield facility is really our machining center of excellence, where we've got all of our skilled labor there, a great team there that they make all of the -- they do all the machining work there in Springfield. And then this facility here in Tennessee is kind of our state-of-the-art facility where we're doing distribution, we're doing assembly, doing some finishing operations, plastic injection molding and obviously the headquarters.

當然。謝謝你，Rommel。如同——我想你可能也知道，我們的 Springfield 廠其實是我們的加工卓越中心（machining center of excellence），那裡有我們所有的熟練技術人力，也有一支很棒的團隊；所有的——他們在 Springfield 進行所有的加工工作。而田納西州這座廠則是我們的最先進設施，我們在那裡做配送、組裝、一些後段加工（finishing）作業、塑膠射出成型，當然也包括總部。

So -- and that is going to be the plan going forward is that Springfield is going to be the machining center and then Tennessee is going to be the headquarters and all the operations I just mentioned. So the investment in capacity is happening in Springfield because that's the machining center where that capacity is going to be planned to be for -- the machining is going to be planned to be forever. So that facility is going to continue to be part of our plans for the future.

所以——未來的規劃就是：Springfield 會是加工中心，而田納西州會是總部，以及我剛提到的所有營運項目。因此，產能投資會發生在 Springfield，因為那裡是加工中心，而那個產能將會規劃用於——加工將會被規劃為長期、永久地在那裡進行。所以該設施將會持續納入我們未來的規劃之中。

Okay, great. That's helpful. And maybe just to follow-up on the new products that you already talked about a little bit. I don't mean to beat it to death, but just on the Handgun side, could you just comment on some of the most recent introductions, which maybe didn't necessarily impact the quarter you just reported, like Bodyguard 38 2.0, and I guess you've had the Shield X for several months now. But yeah, I wonder if you could just comment on the most recent introductions in Handguns and obviously the impact that that's having in helping to drive the significant share gains you're seeing?

好的，很好。這很有幫助。另外想就你們已稍微談到的新產品再追問一下。我不想過度追問，但就手槍（Handgun）這一塊，能否請你評論一下最近的一些新品推出？這些可能不一定影響你們剛報告的那一季，例如 Bodyguard 38 2.0；另外我想 Shield X 也推出好幾個月了。不過，是的，我想請你談談手槍最新的產品導入，以及這些新品在推動你們所看到的顯著市占提升方面，究竟帶來了什麼影響？

Sure. Yeah, I mean, I think if we're going to point to one thing that's kind of driving the share gains, I think it is new product and it's Handgun new products. So it's just been, frankly, one home run after another. The Bodyguard 38 that you just mentioned, that, as you know, was just introduced very recently within the last few weeks, that's doing very well for us. The Bodyguard 380 pistol continues to be a very successful product for us, one of the leading, if not the leading concealed carry pistol on the market.

當然。是的，我的意思是，如果要指出一個推動市占提升的關鍵，我想就是新產品，而且是手槍的新產品。坦白說，這一路就是一支接一支的全壘打。你剛提到的 Bodyguard 38，如你所知，是在最近幾週才剛推出，對我們來說表現非常好。Bodyguard 380 手槍也持續是我們非常成功的產品，是市場上領先、甚至可能是最領先的隱蔽攜行（concealed carry）手槍之一。

The Shield X, doing very well for us as well. So -- and also, I'll just mention on the, as I mentioned in the prepared remarks, it's not just on the -- all of those are kind of concealed carry guns. We're really rounding out the line to the entire semi-auto pistol line with the Competitor, the HD series.

Shield X 的表現對我們也非常好。所以——另外我也想補充一下，正如我在事先準備的發言中提到的，不只是——上述那些多半屬於隱蔽攜行槍款。我們也正把產品線擴展得更完整，涵蓋整個半自動手槍產品線，包括 Competitor、HD 系列。

So really, all of those new products are doing very well for us. And as I mentioned earlier, really just helping to elevate the brand in general, right? It's just the consumer's perception of the brand is already good and only getting better with all these new products in production. So they're really doing what we expected.

所以，這些新產品整體而言對我們都表現得非常好。而且如我先前提到的，它們確實有助於整體提升品牌形象，對吧？消費者對品牌的觀感本來就不錯，而隨著這些新產品投入量產，只會變得更好。所以它們確實達到了我們的預期。

Thank you, and with that, there are no questions at this time. I would like to turn the forward back to Mark Smith for any closing remarks.

謝謝你；目前沒有其他問題。我想把會議交回給 Mark Smith，請他做結語。

Well, I just want to thank you, operator, and thank you, everybody, for joining us today and your interest in our company and Smith & Wesson. Look forward to speaking with you all again next quarter.

好的，我只想感謝你，接線員，也感謝各位今天參與，以及各位對我們公司與 Smith & Wesson 的關注。期待下個季度再與各位交流。

Thank you. And with that, ladies and gentlemen, this does conclude today's teleconference. We thank you for your participation. You may disconnect your lines at this time and have a wonderful rest of your day.

謝謝。那麼，各位女士、先生，今天的電話會議到此結束。感謝各位的參與。您現在可以掛斷電話線，祝您今天剩餘時間愉快。