Net income dropped 21% to $17,560,000 from $22,286,000 as sales fell 8% to $140,872,000 from $153,657,000 in the second quarter ended June 27. Gross margin expanded 166 basis points to 34.4% in the quarter. Inventories at distributors bulged by 63,500 units and RGR’s own finished goods inventory increased by 44,100 units, as distributors’ estimated sell-through decreased 22% sequentially from Q1 ’15, roughly tracking NICS background checks during the same period. Q2 sell-through from distributors to retailers fell 2% from Q2 ‘14, due to more conservative restocking behavior, RGR opined.
Ruger said its retailers are reporting that it has maintained market share, ... Log in to view full article.