American Outdoor Brands, owner of Smith & Wesson, saw a 90 percent decrease in quarterly profits compared to the same period last year, dropping from $32 million to $3.2 million. Overall sales are also down from last year by 36 percent.
"Total revenue for the quarter faced a challenging comparison to last year, when we believe strong consumer demand was driven by personal safety concerns and pre-election fears of increased firearm legislation," said CEO James Debney, in a statement.
Fears that a Hillary Clinton presidency might be on the horizon, gun enthusiasts stocked up on firearms last year; but President Trump's victory abated concerns that tougher gun regulations would come to fruition.
"The firearms industry is still suffering from continued malaise in retail sell-through due to the Trump slump," said Rommel Dionisio, a gun industry analyst for Aegis Capital Corp. He said manufacturers and retailers are still dealing with an inventory backlog, because they stocked up prior to the election expecting stronger sales.