Tariffs are about to become a big problem for American Outdoor Brands, the maker of iconic Smith & Wesson firearms.
The company reported weaker than expected earnings Thursday because of a drop in gun sales. It also warned investors that it will take a $5 million hit to earnings in the second half of the fiscal year due to the impact of tariffs from the escalating US-China trade war.
On Friday, American Outdoor Brands stock dropped 22%, to 6.01 from 7.68 a day earlier.
The tariffs will mostly affect its outdoor products – hunting and fishing accessories that account for more than a quarter of its sales. Many of those products are made in China, and the company warned it has few alternatives other than to pay the cost of the tari