In California, Gov. Brown vetoed about half of legislation with comments like"more regulation will not reduce crime rates." The gun market went completely soft. AR-15's are now in every gun store sitting on the shelf at $1000 each. Without fear of taking away guns and ammo, the public will not buy. Law enforcement will not carry the crazy margin expansion at SW. SW kept raising prices all year and now is forced to give concessions just to get stores to take inventory. Backlog has evaporate as double and triple orders were cancelled. This quarter will be weak but next quarter will be dismal.
Last weekend at the Walmart sponsored gun turn in, 900 guns were tendered for $100 each gift card. Six months ago only 198 guns were turned in. The scare is over and sales will be down and margins will collapse.