Question · Q2 2026
Alex Jernigan inquired about the impact of input costs, including steel, components, and tariffs, on gross margins for the upcoming quarters, referencing an 80 basis point headwind in the current quarter. He also asked about the sustainability of current operating expense levels, particularly G&A, and sought early insights into the Q4 outlook given positive Q3 guidance.
Answer
President and CEO Mark Smith noted that tariff impacts might increase in the back half of the year but are not expected to materially affect profitability. EVP, CFO, and Treasurer Deana McPherson added that increased operating days and production would lead to favorable absorption, helping to offset tariff costs and improve gross margins. Mark Smith indicated that operating expenses are generally consistent year-over-year, with an expected increase in Q3 due to the SHOT Show, advising reference to past Q3 and Q4 OPEX performance. He expressed satisfaction with Q2 and first-half performance, driven by brand strength and successful new products, expecting this momentum to continue into Q3 and anticipating Q4, historically the strongest quarter, to achieve high single-digit to low double-digit growth over Q3.
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