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Of the $72m in S&W's firearms revenue, $64m is through sporting goods distributors and retailers, who take a healthy chunk of the margin. Although the unquestioned market leader in past years, S&W's market share in the more lucrative government market is now small compared to Glock, for example. (Glock is private, but there are estimates that it sells $50m in the U.S., probably as much, or more, overseas.)
If I were the president of S&W, I would concentrate on moving my existing products, like the M&P, to government. They had a big management shake up a couple weeks ago, and an new VP-Sales was promoted. He should be focused on governmental sales. If they held their own in the retail channel, and got half of Glock market share in gov. sales, they would increase sales 25% and profitability would at least double.
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