Sturm, Ruger & Company, Inc. (NYSE:RGR) Q3 2023 Earnings Call Transcript

Christopher Killoy: Well, one of the things is that’s in the current quarter. So we typically don’t talk about current quarters or future events from a financial standpoint. Again, we are seeing those same media reports, like I mentioned, our distributors and manufacturers in the 2-step model were a little bit removed from it. We’ve seen reports of increased sales at retail. But at least as of last week, we hadn’t seen a lot of that moving back upstream to the manufacturers. But there are still a lot of goods in inventory, particularly at the retail level and wholesale level to work through. So there may be some good demand signals coming for all the wrong reasons perhaps, but we’re watching that very closely. And our sales force is in the field every day, every week, modern in-store sales. So we get a pretty good read from them on what’s moving and what’s not. So I think we’ll be well positioned to capitalize on any increased bump in sales if and when that occurs.

Joshua Kurzban: And would you expect that increase to be more enduring than what happened in the wake of COVID, given that this is a new population. And a related question to that, and this is more theoretical, Obviously, the left has been anti [indiscernible] a while. Would you expect some of those people to be less adverse to protective measures being taken by families? Do you think the political pressure is going to be turned down a bit?

Christopher Killoy: That’s a hard one to say. We saw with COVID and some of the things going on in 2020, 2021. It did bring a lot of new customers into the fold. And that’s always helpful in terms of the ability to get those new customers to go from being a one gun purchase to a potentially a multi-gun purchase and try to get into segments of the shooting sports that they can enjoy long-term. For example, using our 10/22 rifle or Mark IV family of pistols,they could really take it up in a range and enjoy it. And so our goal is always, when we get the opportunity, to get new shooters into the business to try to welcome them with open arms, of course, and then also to get them to understand how broad and deep the firearms community is and how much enjoyment they can have out of the range, taking their family out and learning how to shoot safely.

And as far as they’re changing their political views, it’s hard to say. I don’t think I could adequately comment that. I’d like to think it wakes people up to the idea that while they may not have considered a firearm purchase in the past, now they have and they realize that second amendment rights are worth supporting, and maybe they do reconsider some of their previous political beliefs.

Joshua Kurzban: When would you get the background check data for October?

Christopher Killoy: Pretty quickly. I would expect probably maybe late today or tomorrow. It’s a fairly fast turnaround these days as far as seeing that. And then the National Shooting Sports Foundation turns around pretty quickly with their adjustments that they make to it to account for permits and things of that nature.

Joshua Kurzban: And what are your expectations on that?

Christopher Killoy: For the month of October, to be candid, I don’t recall where October last year was. So I wouldn’t hazard a guess.

Operator: And our next question comes from the line of Ryan Hamilton with Morgan Dempsey Capital. Looks like Ryan seems to be having some technical difficulties. So with that, I’ll now hand the call back over to President and CEO, Chris Killoy for any closing remarks. .