Sturm, Ruger & Company, Inc. reported a decline in financial performance for the fiscal year ending December 31, 2024, with total net sales of $535.6 million, down 1.5% from $543.7 million in 2023. The company's net firearms sales decreased by 1.5% to $532.6 million, while net casting sales remained stable at $3.0 million. The gross profit for the year was $114.4 million, reflecting a 14.4% decrease from the previous year's gross profit of $133.6 million, resulting in a gross margin of 21.4%, down from 24.6% in 2023. The decline in profitability was attributed to decreased sales, unfavorable fixed cost leverage due to lower production, and a shift in product mix towards lower-margin items.
In terms of operational metrics, the company experienced a 3% increase in unit shipments, totaling 1,407,800 firearms in 2024 compared to 1,367,500 in 2023. New product introductions contributed significantly, accounting for $159.3 million or 32% of total firearms sales, up from 23% in 2023. The estimated sell-through of products from independent distributors to retailers increased by 5%, despite a 4% decrease in adjusted National Instant Criminal Background Check System (NICS) checks, indicating a potential shift in consumer demand dynamics.
Strategically, Sturm, Ruger has made notable changes in its leadership, with Christopher J. Killoy set to step down as President and CEO on March 1, 2025, transitioning to a Special Advisor role until his retirement in May 2025. Todd W. Seyfert will succeed him as President and CEO. The company also reported a reduction in its workforce, with approximately 80 employees laid off, which contributed to an increase in general and administrative expenses due to severance costs.
The company maintained a strong liquidity position, with cash and cash equivalents of $10.0 million and $95.5 million in short-term investments as of December 31, 2024. It also has a $40 million unsecured revolving line of credit that remains undrawn. Looking ahead, Sturm, Ruger anticipates capital expenditures of approximately $20 million in 2025, primarily for tooling and equipment upgrades, while continuing to focus on new product development and market expansion. The company remains cautious about potential impacts from legislative changes regarding firearms, which could affect future sales and operational strategies.
About STURM RUGER & CO INC
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