Reminder: Shot Show Is Happening This Week

Why Shot Show Is Important

Many companies unveil new products ahead of the show so that these can be exhibited during the event. The show should provide a boost for the industry, which is expected to a see a slowdown in sales following the "unusually high growth" in 2016.

The strong growth in 2016 reflected demand pulled forward from 2017 to 2016, as retailers and distributors received elevated orders prior to the election on fears that a Democratic victory could result in tightening of gun legislation. Terror strikes and mass shootings also played out in the minds of buyers, as they scrambled to buy firearms.

Competition Heating Up

In a note released in December, Wunderlich's analyst Rommel Dionisio noted that American Outdoor Brands Corp AOBC's competitors have unveiled new products for 2017. American Outdoor Brands is the new moniker for Smith & Wesson Holding.

American Outdoor Brands' competition includes Sturm Ruger & Company Inc RGR, Dicks Sporting Goods Inc DKS, Cabelas Inc CAB and Vista Outdoor Inc VSTO.

The analyst believes the new product introductions in two of the fastest growing categories in the firearms segment, modern sporting rifles (MSRs) and compact/concealed carry handguns, could challenge the company's market share, which had been increasing meaningfully over the past several years.

Meanwhile, Wunderlich also said its firearms distributor contacts believed American Outdoor Brands would also soon unveil the second generation of its popular M&P pistol.