Ammo Sales Are Up At Winchester

Olin Corporation released their second quarter 2015 results yesterday. I doubt anyone who reads this blog cares what they made on their sales of chlor alkali and caustic soda. However, their results from their Winchester division are interesting.


Winchester second quarter of 2015 sales were $194.2 million compared to $181.0 million in the second quarter of 2014. The increase in second quarter of 2015 sales compared to the second quarter of 2014 reflects increased shipments to commercial, law enforcement and military customers. Winchester’s second quarter 2015 segment earnings were $33.9 million compared to $33.1 million in the second quarter of 2014. The increase in segment earnings reflects the impact of lower commodity and material costs and lower manufacturing and other costs, partially offset by a less favorable product mix.

As I read this, and I’m not an accountant, both their gross sales and net revenues from ammo sales are up. However, their net margins have dropped from 18.29% in 2014 to 17.04% in 2015. Given that they have lower commodity/material costs combined with lower manufacturing costs in 2015, the fact that their net margins have dropped would be something I’d want to keep an eye on.

I’m thinking that either Walmart is really pushing them on price or that push is coming from their governmental bulk sales. This is all just a guess on my part.

6 thoughts on “Ammo Sales Are Up At Winchester”

  1. The 'less favorable product mix' and increase in contract (gov, LEO) pretty much gives it away.

    I would not worry about keeping an eye on it, though. Government sales can be like an annuity: you won't make much, but the returns can be steady. That has not exactly held true for everyone in the Obama years (see: my firm's revenues), but unless Olin adds significant new capacity just to service the gov work they are pretty safe. The upshot is that servicing .gov increases carryover commercial capacity for anything they buy.

    I just wish .gov would buy more .22lr.

  2. Winchester could make a lot more money if they would drop the STUPID "LEO Only" requirement on Ranger ammo.
    Only the person who has never shopped online thinks that you have to be a LEO to buy Ranger T ammo. The distributors have to say it on their site or they can get spanked by Win but why not just drop the whole 'wink, wink, nudge nudge' BS.

  3. Do you have an idea what portion of sales comes from ammunition versus firearms for Winchester? thanks

    1. Winchester Firearms are actually a division or brand of FNH-USA. Winchester ammo is a division of Olin Corporation. Olin sold their firearm division many, many years ago.

Comments are closed.