Soft consumer demand and retailer destocking hit the top and bottom line, with net income plunging 67% to $10,199,000 from $23,515,000 on a 21% sales decline to $131,854,000 from $167,944,000 in the second quarter ended Jun. 30. RGR shares traded 10% lower on the news. Gross margin fell 730 basis points to 26.5% from fixed manufacturing cost deleverage on the lower sales with some promotional activity added. The loss included a $2.5 million expense for the recall of the Mark IV pistols to repair safeties on early models.

After a first quarter in which it defied market forces better than most, ... Log in to view full article.