In this article, we will discuss the 5 biggest gun companies in the world. If you want to read our analysis of the gun industry, you can head on to the 15 biggest gun companies in the world.
5. Remington Outdoor Company, Inc.
2021 annual revenue: $865.1 million
Founded in 1816, Remington Outdoor Company, Inc. is one the oldest gun manufacturers. In 2016, the company celebrated its 200th Anniversary, becoming the Oldest gunmaker in America. The company provides its products to law enforcement organizations and hunters. The company’s most popular products are Remington RP, Model 783, Model 1911 R1 CARRY, Remington RM380, and Remington R51, Model 700. In 2015, Remington Outdoor Company, Inc. was acquired by the Freedom Group. The company employs about 3,000 people.
In 2021, Remington Outdoor Company, Inc., posted a revenue of $865.1 million in 2021. Moreover, the company has also announced a plan to relocate its headquarters to Georgia and to invest $100 million in the operation. The CEO of the company stated that with the launch of its new products and extensive investment in R&D, the company is moving into a new era.
4. Beretta Holding S.A.
2021 annual revenue: €958.0 million
Founded in 1526, Beretta Holding S.A. is one the oldest gun manufacturers in the world. The company has its headquarters in Gardone Val Trompia, Italy, and has over 2,962 employees worldwide. Beretta Holding S.A. manufactures revolvers, semi-automatic pistols, shotguns, rifles, and sub-machine guns and supplies to civilians and military organizations around the world.
The company generated sales of €958.0 million in 2021, with a majority of the sales coming from the North American region. Some of the company’s widely selling products include Beretta 70 Series, Beretta Mx4 Storm, Beretta Laramie, M1915, and Beretta ARX 160.
3. Smith & Wesson Brands, Inc. (NASDAQ:SWBI)
2021 annual revenue: $1.1 billion
Founded in 1852 and headquartered in Springfield, Smith & Wesson Brands, Inc. (NASDAQ:SWBI) is engaged in the business of firearms manufacturing. The company is considered an industry leader in firearm manufacturing. Firearms is the only reportable segment of Smith & Wesson Brands, Inc. (NASDAQ:SWBI), and its product portfolio entails an extensive range of both handguns and long guns, suppressors, handcuffs, and other ammunition-related essentials. The company has three manufacturing facilities in the US, all of which are ISO 1900 certified.
On September 09, 2022, Mark Smith, an analyst at Lake Street, reduced his price target on Smith & Wesson Brands, Inc. (NASDAQ:SWBI) to $22. The analyst currently has a Buy rating on the stock, and although he has revised his price target downwards due to normalized demand, the long-term outlook remains positive as the company continues to execute its plans for growth.
The company’s revenue increased substantially during the middle of the COVID-19 pandemic, from Q4 2022. The demand for the company’s products remained at high levels till the first quarter of the fiscal year 2022. However, the demand has started to normalize, as evidenced by the company’s last quarter result, with revenue declining by 69% YoY.
2. Sportsman’s Warehouse Holdings, Inc. (NASDAQ:SPWH)
2021 annual revenue: $1.5 billion
Founded in 1986, Sportsman’s Warehouse Holdings, Inc. is an outdoor sporting goods designer and seller. The company operates in 29 states in the United States, operating 122 stores in the country. The company produces high-quality hunting and shooting equipment, including firearms, reloading equipment, shooting gear, and archery items which accounted for 54.2% of the company’s 2021 sales.
Sportsman’s Warehouse Holdings, Inc. posted revenue of $1.5 billion in the fiscal year 2021, up 3.7% compared to $1.4 billion in the fiscal year 2020. The company’s strategic plan includes opening up 190-210 stores and achieving revenue in the range of $1.8 billion to $2 billion by the fiscal year 2025.
Here is what Merion Road Capital has to say about Sportsman’s Warehouse Holdings, Inc. (NASDAQ:SPWH) in its Q1 2022 investor letter:
During the quarter I added to Sportsman’s Warehouse (“SPWH”). SPWH is an outdoor sporting goods retailer with about half of their revenue coming from hunting & shooting products (guns, ammo). I initiated our position back in December following their failed merger with Great Outdoors on the grounds of anti‐trust concerns. It appeared that the stock was being sold off indiscriminately by merger arbitrageurs and valuation seemed attractive, particularly after adjusting for the receipt of a $55mm termination payment and unwind of excess inventory.
While the dust has largely settled from an investor base perspective, SPWH remains attractively priced with a few upcoming catalysts. Fundamentally the company is well positioned. Following the tragic Parkland school shooting two large competitors to SPWH, Dicks Sporting Goods and Walmart, made the decision to exit the category; their absence makes the competitive landscape for SPWH a lot more favorable than in prior years. Furthermore, it is no surprise that gun and ammo sales during covid experienced tremendous growth. Unlike prior cycles, however, this wave saw an increase in new gun buyers rather than purchases by existing owners. SPWH estimates that over the past 18 months the industry created 12mm new firearm owners; using a prior base of 100mm, this implies an increase to their addressable market of 12%. The company is executing on many other internal initiatives including store expansion, omni‐channel growth (e‐comm up to 15% of revenues), loyalty programs (at 3mm members) and new co‐branded credit cards… (Click here to see the full text)
1. Vista Outdoor Inc. (NYSE:VSTO)
2021 annual revenue: $2.2 billion
Based in Minnesota, United States, Vista Outdoor Inc. (NYSE:VSTO) designs and develops outdoor sports and entertainment equipment. It has 26 manufacturing plants across the United States, Mexico, Canada, and Puerto Rico. The firm divides its operations into two primary segments: Shooting Sports and Outdoor products. The United States is a key geographic location for the company in terms of its sales, and during the fiscal year 2022, only about 14% of the company’s sales came from outside the U.S. According to the company Vista sold its firearm brands in 2019, but Vista is still the parent company of ammunition brands Federal, Speer, Estate Cartridge, Hevi-Shot, CCI and Remington ammunition. So, this isn’t a pure play ammunition company and probably wouldn’t be #1 on our list if it divested its non-ammunition businesses.
The outbreak of COVID-19 created demand for Vista Outdoor Inc. (NYSE:VSTO) products as the company posted sales of $3.0 billion during the fiscal year 2022, recording an impressive growth of 36.8% from $2.2 billion in the fiscal year 2021. Vista Outdoor Inc. (NYSE:VSTO) is continuing on its growth trajectory in the current year and expects revenue for the fiscal year 2023 to be in the range of $3.20 to $3.33 billion.
Here is what ClearBridge Investments has to say about Vista Outdoor Inc. (NYSE:VSTO) in its Q2 2021 investor letter:
Our Strategy outperformed with strong results from consumer discretionary stocks like Vista Outdoor. Vista Outdoor, a manufacturer of a wide range of products serving the outdoor sports and recreation markets, also performed well in the period on continued demand and growing margins.
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