Shares of American Outdoor Brands (NASDAQ: AOBC) — formerly known as Smith & Wesson — crashed in early Friday trading after the gunsmith reported a small per-share loss for its fiscal first-quarter 2018. As of 11 a.m. EDT, the stock was down a good 15.5%.
First-quarter sales plunged 37.7% at American Outdoor Brands, landing with a thump at $129 million. Gross margins fell off a cliff, down an astounding 1,080 basis points to 31.5%. Given the magnitude of these declines, the fact that American Outdoor lost only $0.04 per share almost comes as a relief.