🔒CT gunmaker Sturm, Ruger posts 2Q loss amid new CEO’s restructuring efforts

Sturm, Ruger & Co. reported a steep second-quarter loss as the Southport-based firearms maker undergoes a restructuring under its new CEO. The company posted a $17.2 million (or $1.05 per share) net loss for the three-month period ending June 28, versus an $8.26 million (or 47 cents per share) profit for the same quarter in 2024. Net sales for the quarter came in at $133 million, up from $131 million a year earlier, but year-over-year cost of products sold increased to $127 million from $102 million. Meantime, the company recorded $26.4 million in one-time restructuring charges during the quarter. That included a $17 million charge for inventory and other related asset write-offs; $5.7 million for product rationalization and reduction; and $3.7 million for organizational realignment. Sturm, Ruger, which trades on the New York Stock Exchange under the ticker symbol RGR, saw its stock price Thursday morning decline by 2.3%, to $33.83 as of 11 a.m. “This quarter marks my first full quarter as CEO, and we took decisive steps to position Ruger for long-term success,” said Todd Syfert, who replaced Chris Killoy as CEO in January. “As part of this transition, we evolved our leadership structure and reorganized our operations to empower each business unit with greater flexibility and clearer ownership of results. We also brought our entire product strategy under one comprehensive team to sharpen our focus on future innovation and execution.” According to U.S. Securities and Exchange filings, Kevin B. Reid Sr. resigned as general counsel and corporate secretary on May 29, but he will remain vice president until June 30. He will keep working as senior counsel until he retires on June 30, 2026. Sarah F. Colbert assumed the role of general counsel and corporate secretary on May 29. According to a June SEC filing, CEO Todd Seyfert informed the company’s 1,780 full-time employees of a planned workforce reduction that would cost the company $3 million, though the filing did not say how many positions would be eliminated or when. Syfert also said in the letter that the company is reviewing its management of raw materials and product inventory. Syfert reaffirmed that strategy in his comments on the company’s second-quarter results. “As part of these steps, the company conducted a thorough inventory rationalization, reassessing its raw materials, work-in-process, and finished goods to identify and reserve for excess, obsolete, or discontinued inventory,” he said. “This included legacy models at the end of their lifecycle, products no longer aligned with Ruger’s long-term strategy, and Marlin-related items not included in that brand’s future roadmap.” He said the company also repositioned its product portfolio to better match market conditions and give consumers their most wanted products at the best prices. “While these actions adversely impacted this quarter’s results, they strengthen Ruger’s ability to pursue growth and deliver stability through cyclical markets,” he said. He said the company’s previously announced acquisition of Kentucky firearms maker Anderson Manufacturing shows Ruger’s commitment to becoming the nation’s top gunmaker for the consumer market. Sturm, Ruger paid $16 million for the purchase, the company confirmed.