More guns, less butter?

October 21, 2009

Sorry — the economics major in me came out in the headline. But it’s the first thing that I thought about after skimming the S-1 that Freedom Group filed earlier today. You can read news reports of the filing here and here.

We’ve only skimmed the filing, but just like Smith & Wesson, Freedom Group claims that the change is administrations has prompted a mini-boomlet of sorts in gun sales. Here’s a snip:

Our industry has experienced a significant increase in certain firearms and ammunition demand since late 2008. We believe a number of consumers have been concerned about increased firearms and ammunition regulations as a result of the new administration in connection with the 2008 Presidential election. We view these increases in demand as having significant long-term benefits, including expanding the popularity of shooting sport categories, as well as providing an opportunity to cultivate new, and renew existing, long-term customer relationships across our portfolio of products and brands. These increases have resulted in sales growth of 47.2% and 38.7% in our firearms and ammunition segments, respectively, during the three months ended June 30, 2009 versus the three months ended June 30, 2008, and sales growth of 41.6% and 27.1%

It’s pretty much the same thing that the company said back in late March (and which we wrote about here. Of course, back then, Remington not being publicly traded didn’t really provide such detailed numbers as they did in today’s filing.

We also think it’s interesting that we’re starting to see a lot more IPOs lately from all sorts of companies.

Image source: Dollars & Sense

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