Rifles are a tough sell for Smith & Wesson. NEW YORK (CNNMoney)
The gun maker said Tuesday that quarterly sales were down by $39.2 million, pulled down by a shrinking demand for rifles. It made a $14.6 million profit, falling 45% from the prior year.
Shares plunged as much as 15% in after-hours trading.
Summer is typically a slow time for the industry, said CEO James Debney on a call with investors, and sales actually met the company's expectations.
Related: Smith & Wesson hit for overseas bribes
Still, Smith and Wesson (SWHC) lowered overall guidance for the year. Executives now expect sales to come in between $530 million and $540 million. In June, they predicted sales would be between $585 million and $600 million at the end of the fiscal year, which ends in April.
In the past couple of years, the gun industry saw an intense run-up in demand, fueled by concerns of more rigorous gun restriction. But President Obama has failed to get a bill through Congress that increases regulation and Americans are buying fewer guns.
Shares of rival gun maker Sturm Ruger (RGR) also fell Tuesday, but its drop was less dramatic.
First Published: August 26, 2014: 6:01 PM ET
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