What’s The Impact of Gun Debate on Gun Sales?

It can be negative for sure in the long run, in case the authorities reach agreement on assault weapon ban. So far, though, people are rushing to stores to buy new guns.

Sturm, Ruger & Co., which is one of the nation’s leading gun makers, exceeded analysts’ expectation of 82 cents per share earning in the last quarter of 2012 and reported $1 per share earning on the sales of $141.8 million. The sales increase has specifically been intense in 2013.

For now shares of Sturm, Ruger & Co. (RGR) are up at least 3% and this is hardly the case for only this gun maker: In the period following Sandy Hook elementary school mass-shooting in the U.S., gun retailers have been struggling to keep up with the new demand for firearms. Some analysts point to the psychological effect of the gun control debate on consumer behavior: The customers fear that such incidents lead to more strict measures in the gun sales and ownership process and want to take advantage of the loose situation now; Gun sales had already been on the rise since President Obama’s reelection in November 2012 as it was suspected that the Democratic nominee would take a harder stand on guns compared to Republicans.