(ed: kinda counter-intuitive – to think that gun sales would fall under trump – but the stats don’t lie..)
After a golden era of sales under Barack Obama America’s gun manufacturers are in trouble.
Sales have tumbled – leaving the companies with too much stock on their hands and falling revenues.
The crunch claimed its biggest victim this week when Remington filed for bankruptcy.
The move does not mean the end.
Remington is using the US’s chapter 11 bankruptcy law to offload $700m of its $950m in debt and to restructure the company.
But it does underscore the level of distress in the industry.
In December American Outdoor Brands – the owner of Smith & Wesson – reported that its profits had fallen 90% year over year – from $32m to just $3.2m.
Sales fell 36%.
Last October Sturm Ruger – the US’s largest firearm manufacturer – announced its quarterly revenues had fallen 35%.
Both companies will report their latest results shortly but neither is expected to announce a dramatic increase in sales.
‘They call it the Trump slump’ said Robert Spitzer – a professor at the State University of New York at Cortland and the author of five books on guns.