Arms Manufacturing Company “Smith & Wesson” Changes Its NameScreen Shot 2016-12-15 at 11.39.39 AM
On Tuesday, Smith & Wesson’s stockholders voted to change the holding company’s name to “American Outdoor Brands Corporation.” James Debney, the company’s chief executive officer, said the name change will better reflect the growing business as a whole. He called American Outdoor Brands “a name that truly represents our broad and growing array of brands and businesses.”
Smith & Wesson will function as a subsidiary of American Outdoor Brands and remain the title of the conglomerate’s firearm division. The name change and trading stock symbol “AOBC” will go into effect Jan. 1. This has been something that has been fairly common lately for the company who has launched several brands including outdoor and gun related companies, for a total of four separate divisions. Also, a manufacturing services division, electro-opitcs and accessories currently make up the company.
Smith & Wesson, which is a Massachusetts-based manufacturer, experienced a significant drop in price per share at the beginning of the month when Debney announced plans to focus on the rugged, outdoor and accessories market. During his conference call announcement, Debney pleaded with investors and said that the future lays outside of just handguns and rifles. He offered assurances that the strategy would work as the country settles in with a pro-gun administration.
Nonetheless, the company reported a $26 million increase in second quarter earnings with $233.5 million in sales and $32 million in profits. Firearm sales made up $233.5 million in quarterly revenue while the outdoor and accessories division reported just $39 million.