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Gun sales shoot up as proposed regs loom, consumer demand spikes

Gun retailer expects big sales surge due to consumer safety concerns and proposed regs coming into play.

January 5, 2016

Within a day of presidential action regarding greater gun sales restrictions a top gun maker is revising its quarterly sales forecast upward by 16 percent.

Smith & Wesson Holding, boasting its highest value in 17 years, reports handgun sales as of the most recent quarter, which ends Jan. 31, could hit $180 million. The spike in sales is due to consumer gun interest following the terrorist incident in San Bernardino, California, according to a Bloomberg report.

President Barack Obama announced new gun control measures Monday regarding licenses and background checks and was scheduled to provide insight on the proposals Tuesday.

The issue of gun control is a hot national topic given political debates and gun shooting incidents in the past few years, and the potential for more regulations typically can spur gun sales, notes an industry watcher.

"Based on the past multiple years, when gun control becomes a big political topic in the headlines, these stocks do well," Chris Krueger, an analyst at Lake Street Capital Markets, told Reuters. Krueger noted that consumers are inclined to buy firearms ahead of proposed new restrictions.