TheStreet RealMoney
Insiders Reload on Sturm, Ruger

By Jonathan Moreland

About this article:
Retail in general has confounded the skeptics, but it's not just teen apparel and discounted bargain fare that are flying off the shelves. Better-than-expected sales at Sturm, Ruger in its last quarter indicate that consumers have been serious about exercising their right to bear (and buy) arms. Sturm, Ruger is a major manufacturer of firearms for the commercial and sporting markets. The company installed new management in 2006, which has improved its manufacturing efficiencies while also introducing new products. Already rebounding shares of Sturm, Ruger were given an additional lift after the company released solid fourth-quarter financial results on Feb. 24. For all of 2009, Sturm, Ruger's sales surged 49%, to $271 million. The gross profit margin reached 32.3%, fully 9 points higher than in 2008. Investments in manufacturing efficiencies are obviously paying off. And with operating expenses not growing as quickly as revenue, EPS was able...

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