In an effort to break further into the outdoor living and accessories market, a longtime mainstay in the firearms industry is changing it’s name.
Smith and Wesson will become American Outdoor Brands and the stock symbol will change to AOBC from SWHC. Here’s the weird thing, the company makes 86% of it’s money from selling guns, whereas accessories make up a small fraction of overall sales.
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The company’s chief executive officer, James Debney, said the name change will better reflect the growing business as a whole. He called American Outdoor Brands “a name that truly represents our broad and growing array of brands and businesses.”
Moving forward, Smith & Wesson will operate as a subsidiary of American Outdoor Brands and remain the title of the conglomerate’s firearm division. The name change and trading stock symbol “AOBC” will go into effect Jan. 1.
Since 2014, the company has acquired a number of brands that include outdoor and gun related companies, and launched four separate divisions. In addition to a firearms branch, it is comprised of a manufacturing services division, electro-opitcs and accessories.
Massachusetts-based manufacturer saw a dramatic drop in price per share at the beginning of the month when Debney unveiled plans to shift focus toward the rugged, outdoor and accessories market. During a quarterly conference call, he tried to sway investors that the future lies outside of just handguns and rifles, and offer assurances that the strategy would work as the country settles in with a pro-gun administration.
Yet, the company reported a $26 million increase in second quarter earnings with $233.5 million in sales and $32 million in profits. Firearm sales made up $233.5 million in quarterly revenue while the outdoor and accessories division pulled in just $39 million.