Growing Personal Safety Concerns and Increasing Shooting Ranges Propelling Ammunition Market Growth
PALM BEACH, Fla., Feb. 1, 2022 /PRNewswire/ -- FinancialNewsMedia.com News Commentary - Ammunition is the object that can be shot from a weapon, such as bombs and bullets. It includes the propellant, a projectile, and a primer that ignites the propellant. It is manufactured using a variety of materials such as steel, brass, and others. The small and medium scale projectiles are majorly used for civilian use, such as shooting sports and self-defense. The large-caliber projectile is mostly used for military applications with the size of the caliber ranging from 50mm to 240mm. The rise in the procurement of ammo by the defense forces, border security forces, and local enforcement agencies, due to increasing terrorist activities, political unrest, and geopolitical tensions drive the market. Furthermore, the growing demand for small caliber projectile by civilians and the homeland security department due to lesser lethality would drive the market growth. A report from Fortune Business Insights projected that the global ammunition market size is projected to reach USD $29.96 billion by 2027, exhibiting a CAGR off 1.71%. The report said that: "Growing personal safety concerns and increasing shooting ranges is propelling market growth… Ammunition is mostly used in handguns, shotguns, and rifles with different calibers. Increasing procurement of small caliber ammo by civilians for personal safety and the growing number of shooting ranges would drive the growth of the market. Increasing terrorist activities and mass shooting incidence are leading to increased personal safety, which, in turn, is creating demand for handguns. Expansion of the shooting ranges industry due to fears of terrorism increased fears over stricter gun control laws, and political rhetoric would propel the growth of the market." Active companies in the markets today include: AMMO, Inc. (NASDAQ: POWW), Vista Outdoor Inc. (NYSE: VSTO), American Outdoor Brands, Inc. (NASDAQ: AOUT), Smith & Wesson Brands, Inc. (NASDAQ: SWBI), Sturm, Ruger & Company, Inc. (NYSE: RGR).
Fortune Business Insights continued: "Based on caliber, the market is segmented into small, medium, and large. Among these, the large caliber ammo segment holds the highest market share. Rising threats from terrorist organizations, growing political conflicts, and increasing defense expenditure are the key factors driving the growth of this segment. The small caliber segment is estimated to showcase significant growth during the forecast period. The growth is attributed to the increasing use of small caliber in a handgun as well as a rifle. Based on the application, the market is classified into military & homeland security and civil & commercial. The military & homeland security segment is anticipated to hold the largest market share in the global market during the forecast period. This growth is attributable to the growing demand for ammunition from military forces due to political unrest, cross-border conflicts, and military modernization initiatives in various countries across the globe."
AMMO, Inc. (NASDAQ: POWW) – BREAKING NEWS -AMMO, Inc. Provides 3rd Quarter Fiscal Year 2022 Guidance Reflecting a Year-Over-Year 288% Revenue Increase and 344% Increase Over the Prior Year Nine Months Period - AMMO, Inc. ("AMMO" or the "Company"), a leading vertically integrated producer of high-performance ammunition and components and owner of GunBroker.com, the largest online marketplace serving the firearms and shooting sports industries, with the strength of the ammunition industry and in its market place the Company, is pleased to provide guidance for the 3rd quarter of the 2022 fiscal year.
For the third quarter period ending December 31, 2022, the Company expects revenue to be approximately $64.5 million, an estimated 288% year-over-year increase compared to $16.6 million for the third quarter of fiscal 2021, and a 344% increase when compared to the nine months ending December 31, 2020.
Commenting on the guidance, Fred Wagenhals, AMMO's CEO said, "As we noted in our recent guidance for the full year of fiscal 2022, we see little or no slowdown in demand for our ammunition or growth in our Gunbroker.com marketplace and we continue to work diligently to meet the growing demand for all our products and services." CONTINUED… READ THIS AND MORE NEWS FOR AMMO BY VISITING: https://ammoinc.com/media/
In other outdoors recent news of interest:
Vista Outdoor Inc. (NYSE: VSTO), a leading global designer, manufacturer and marketer of products in the outdoor sports and recreation markets, recently announced the acquisition of Stone Glacier, a premium brand focused on ultralightweight, performance hunting gear designed for backcountry use. The addition of Stone Glacier to Vista Outdoor's portfolio of outdoor products and shooting sports brands will allow the company to enter the packs, camping equipment and technical apparel categories with a fast-growing brand and provide a foundation for Vista Outdoor to leverage camping category synergies.
"I am excited to welcome the Stone Glacier team into the Vista Outdoor family," said Vista Outdoor Chief Executive Officer Chris Metz. "Stone Glacier is an enthusiast brand that is fast-growing, well-managed and a great cultural fit. Our centers of excellence, brand portfolio and distribution network will support Stone Glacier as they reach their next level of awareness, maturity and growth. Stone Glacier enhances our ability to enter and leverage the camping category, which has exploded in popularity over recent years. The acquisition also further bolsters our reputation as the acquirer of choice in the outdoor industry."
American Outdoor Brands, Inc. (NASDAQ: AOUT), an industry leading provider of products and accessories for rugged outdoor enthusiasts, recently announced financial results for the second quarter fiscal 2022 ended October 31, 2021.
Net sales were $70.8 million for the second quarter of fiscal 2022, compared with net sales of $79.1 million for the second quarter of fiscal 2021, reflecting a decrease in traditional channel net sales, offset by increased e-commerce channel net sales. On a two-year basis, net sales grew 48.2% compared with the second quarter of fiscal 2020, reflecting growth in the traditional sales channel of 9.8%, and growth in the e-commerce channel of 228.9%.
Gross margin of 46.7% was a decrease of 20 basis points from the comparable quarter last year. Net income was $4.6 million, or $0.32 per diluted share, compared with net income of $7.3 million, or $0.52 per diluted share, for the comparable quarter last year.
Smith & Wesson Brands, Inc. (NASDAQ: SWBI), a U.S.-based leader in firearm manufacturing and design, recently announced financial results for the second quarter of fiscal 2022, ended October 31, 2021. Unless otherwise indicated, any reference to income statement items refers to results from continuing operations.
Mark Smith, President and Chief Executive Officer, commented, "Throughout the past 18 months of unprecedented demand levels for our industry, our focus has continued to be on the long term – and our team has been hard at work positioning Smith & Wesson for continued impressive operating results and maintaining our market leadership regardless of market conditions. During our second quarter, as demand levels eased from historical highs experienced during the height of the pandemic, the results of those efforts and our flexible model were evident. Despite a year over year revenue decline, our operations team actually delivered higher gross profit, more than offsetting the decrease in the top line. Our sales, marketing, and new product teams continued our steady cadence of new product introductions, with the most recent being our brand new M&P 10MM introduced last month and we have great confidence going forward to continue being the brand of choice at retail by connecting with both the millions of new firearms owners and our loyal long time enthusiasts in new and innovative ways, continuing to introduce exciting new products, and leveraging our unique ability to adjust rapidly to market dynamics through our flexible manufacturing model."
Sturm, Ruger & Company, Inc. (NYSE: RGR) recently announced that for the third quarter of 2021 the Company reported net sales of $178.2 million and diluted earnings of $1.98 per share, compared with net sales of $145.7 million and diluted earnings of $1.39 per share in the third quarter of 2020. For the nine months ended October 2, 2021, net sales were $562.7 million and diluted earnings were $6.64 per share. For the corresponding period in 2020, net sales were $399.6 million and diluted earnings were $3.31 per share.
The Company also announced that its Board of Directors declared a dividend of 79¢ per share for the third quarter for stockholders of record as of November 15, 2021, payable on November 30, 2021. This dividend varies every quarter because the Company pays a percentage of earnings rather than a fixed amount per share. This dividend is approximately 40% of net income.
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