Wednesday, February 26, 2014

Ruger Clears $678 Million in Sales for 2013

It was a banner year for many firearms manufacturers, which was certainly the case for Ruger with a 40% increase in Net Firearms Sales from 2012 to 2013, finishing of the year with a total of $678 Million. Previously they had a 50% increase from 2011 to 2012, however sustaining growth in combination with booming firearms sales and stiff competition is quite impressive. With new manufacturing in Mayodan, North Carolina there is plenty of upside as they can keep up with demand and recognize sales much faster with increased production capacity. 

Ruger is quite the force to be reckoned with. Their market cap is double that of Smith and Wesson. At $1.32 Billion Dollar Market Value, they surpass Freedom Groups previous purported price tag of $1 Billion, which may have been undervaluing themselves at the time all things considered or simply a rumor perpetuated by media. The product lines run the gamut and point out that new product introductions drove sales making up 29% of total firearms. Obviously, these innovative firearms also draw attention to the brand as a whole. Earnings were up 55% for the year, so compared to sales growth, they are improving their overall business efficiency.

Ruger SR-762
From pistols to rifles and shotguns, we can see Ruger looking to make new offerings across the board to keep things interesting. Even with their new acquisitions, they have the cash on hand to drive R&D and even consider acquisitions to further broaden their business model. One of the most interesting figures they point out is the 18% increase in units sold to Retailers from Distributors, whereas the total increase in NICS Background Checks was only 7% across the market.  Perhaps there are some other variables to make up for some of that differential including Ruger inventory on hand, but we can see this as a very impressive figure when comparing Ruger's prowess compared to other firearms manufacturers. 

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