By Kelly Cloonan
Shares of firearms makers gained after Smith & Wesson Brands reported higher sales in its latest quarter and guided for continued gains ahead, forecasting stronger demand across the industry this year.
The stock climbed 17% to $16.04 on Thursday. The company's results and guidance helped lead an advance for other firearms makers, with Sturm Ruger up 5.1% and Outdoor Holding rising 6.4%. American Outdoor Brands ticked up 1.6%.
Smith & Wesson's sales gained 27% in the latest quarter, driven by handgun shipments. The company expects its double-digit growth to continue in the current quarter, guiding for a 15% to 20% increase, and forecasts mid-single-digit revenue growth for the full year.
"We expect firearm industry demand in fiscal 2027 to continue to be healthy and slightly higher than in fiscal 2026," Chief Financial Officer Deana McPherson said during a call with analysts.
Separately on Thursday, the Supreme Court ruled that Congress can't automatically bar all users of illegal drugs from having firearms, rejecting the prosecution of a Texas man who used marijuana and was convicted of violating a federal law that prohibits drug users from carrying guns.
The ruling further expands the scope of the Second Amendment right to bear arms, but the court didn't fully strike down the law, leaving open the possibility that it could be used to convict people who are addicted to drugs or who carry a gun while intoxicated. The court also said the law might still apply to drugs that pose a "special risk" of misusing firearms.
Write to Kelly Cloonan at kelly.cloonan@wsj.com
(END) Dow Jones Newswires
June 18, 2026 14:03 ET (18:03 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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