Welcome back to another episode of Gun Industry Insider—today is April 8, 2025. I’m your host, Ray Toofan. Today’s episode is packed with info for shop owners, reps, and gunsmiths. We’ll dive into Colorado Senate Bill 3, a new law that’s going to shake up the firearms industry in that state and might ripple out to your business, even if you’re not local. Then, we’ll break down the latest Q4 and full-year 2024 financials from Sportsman’s Warehouse, giving you a look at what their numbers mean for retail trends and your bottom line. If you’re in the trade, these are developments you can’t ignore—let’s get started.

First on the agenda, we’ll cover Colorado Senate Bill 3. It’s a new law that’s going to change things for anyone in the firearms industry in that state, and it might affect you even if you’re not based there. The bill passed both the Senate and House, got sent to the governor on April 3, and it’s set to kick in August 2026. If you’re a shop owner, rep, or gunsmith dealing with Colorado customers or operations, you need to know what this means for your business.

So, what does Senate Bill 3 do? It bans the manufacture, distribution, transfer, sale, or purchase of what they call “specified semiautomatic firearms.” That’s any semiautomatic rifle, shotgun, or gas-operated handgun with a detachable magazine, such as ARs and AKs. There are exceptions: law enforcement, military, and certain transfers like to heirs or out-of-state buyers are fine. But for regular sales to civilians, it becomes a pain. Buyers can still get these guns if they’re vetted by the county sheriff and complete up to 12 hours of training—either hunter education or a firearms safety course. That’s the workaround, but may not be simple depending on the county.

For manufacturers in Colorado, this is a direct hit. If you’re making these guns, you can’t sell them to civilians in-state unless the buyers decide to jump through these hoops. Most casual buyers won’t, the word casual being the key here—12 hours of training plus sheriff approval adds time and cost that they probably won’t bother with. That can potentially result in a significant drop in demand. Some companies might move out of state to avoid this, which means jobs leaving Colorado. If you’re a manufacturer shipping into Colorado, it’s the same deal—your market there shrinks unless customers qualify.

Retailers, this changes your game too. If you’ve got a shop in Colorado, you can’t sell these firearms without verifying buyers have that training and vetting. That’s extra work—checking eligibility cards, keeping records—and it’s on you to comply. If you mess up, it’s a class 2 misdemeanor first time, a class 6 felony after that, and the Department of Revenue can yank your business permit. Online sellers, you’re not off the hook. If you’re sending guns to Colorado customers, you’ll need to confirm they’re cleared, or you’re going to have to deal with returns. An informal survey of Colorado gun stores say that 60-75% of their inventory could be affected—popular stuff like ARs and tactical shotguns. Pivoting to bolt-actions, revolvers, or non-gas operated handguns may not be realistic to make up the lost revenue.

And of course, customers will feel it. That training requirement—four hours if they’ve got hunter education, 12 if not—plus sheriff vetting isn’t quick, and it probably won’t be cheap either. Some will do it, especially dedicated shooters, but others won’t put in the effort, or will procrastinate. You can be sure that before the ban hits in August 2026, and assuming there’s no injunction, there will be a buyer’s rush—people grabbing whatever they can while it’s easier. If you’re a rep, you could see a spike in orders early to mid-next year, then a steep drop-off afterwards. Gunsmiths, custom jobs for guns could pick up prior to the ban since there’s probably going to be restrictions on what can be done with firearms that will become prohibited under this bill.

The broader impact of this will mean fewer gun sales and less excise tax money for the Pittman-Robertson fund—Colorado got $24 million in 2023 for wildlife conservation. If sales tank, that funding takes a hit, which affects hunting and wildlife programs. Industry groups are already gearing up to fight this legally, saying it violates the Second Amendment under Heller and Bruen rulings. With a case like Snope v. Brown at the Supreme Court, this could get tied up in courts for years. That delay might give everyone breathing room, but it’s still uncertainty to plan around.

If you’re in Colorado, you may want to start considering how to adjust before the August 2026 deadline. Maybe consider what inventory you’ll need to stock for buyers without the training hassle, or build a system to handle the vetting process. Out-of-state, watch your Colorado sales—there will likely be a buyer’s rush of products that will become non-compliant. We’ll keep a watch on this bill to see how it proceeds.

Now, let’s talk about the latest numbers from Sportsman’s Warehouse. They released their Q4 and full-year 2024 financials on April 1, and if you’re in retail or dealing with outdoor gear and firearms, this can give insight. They’re a major player in hunting and shooting sports, so their results can show what’s happening industry-wide. Here’s what they reported and what it means for you.

For fiscal year 2024, ending February 1, 2025, net sales were about $1.2 billion. That’s 7.0% less than the roughly $1.29 billion from 2023. Last year had an extra week that added $16 million, so the drop isn’t unexpected—demand has been slowing since the pandemic, and people aren’t spending as much with inflation rising. Same-store sales fell 7.8% for the year. If your shop’s seeing fewer sales, this matches that pattern. Customers are holding back, especially on bigger purchases like firearms and bulk ammo.

In Q4, net sales were $340 million, down 8.1% from $370 million in Q4 2023. Same-store sales dropped 0.5% when comparing 13-week periods, which suggests things leveled off toward the end of the year. Gross profit in Q4 was about $103 million, or 30.4% of net sales, compared to $99 million and 26.8% in 2023. They’re making more per sale, probably by eliminating discounts or adjusting prices. If you’re a retailer, think about your margins—could you improve them by changing what you offer or how you price it?

The yearly net loss was $33.1 million, up from $29.0 million in 2023. After removing one-time costs, the adjusted net loss was $20.2 million, or $0.53 per share. In Q4, they lost $1.5 million, compared to a $1.9 million profit in Q4 2023, but adjusted EBITDA rose to $14.6 million from $5.3 million. They cut operating expenses by $20 million in 2024, which helped. If your costs are rising, look at where you can save—those savings kept them going despite lower sales.

Firearms and ammo sales declined, which they say comes from comparing to strong 2023 numbers when people were still buying heavily after COVID. They blame inflation and changing customer habits—people are spending less or picking cheaper options. But they also say they’re gaining market share, doing better than adjusted NICS data suggests. 

For 2025, they expect net sales between $1.19 billion and $1.24 billion—a 1% drop to a 3.5% increase from 2024. Adjusted EBITDA should be $33 million to $45 million, up from Q4’s $14.6 million if they keep margins strong. They plan to improve stores, focus on local products, and maintain those expense cuts. For your business, this points to a market that’s not growing fast but not collapsing either. Stocking practical items like concealed carry gear or affordable hunting supplies could match what customers want now.

Also, their inventory dropped to $342 million from $355 million, and net debt fell to $96 million. They’re keeping cash available, which is smart when sales are uncertain. If you’ve got too much stock, consider moving it—having cash on hand helps more than sitting on unsold items. 

This fits with what other companies are reporting. Smith & Wesson’s sales fell 15.7% in Q3, and Ruger’s revenue was down 1.5% for 2024. The whole industry’s dealing with slower demand after the pandemic peak. Sportsman’s focus on margins and costs shows a way to handle it. If they hit their 2025 targets, it’s a strategy you could follow—cut where you can and push what sells.

We’ve covered a lot today—Colorado Senate Bill 3 and its impact on manufacturing, sales, and your operations if you’re tied to that state, plus Sportsman’s Warehouse’s latest numbers showing where retail’s at with slower demand and tighter margins. These aren’t just news updates—they could change how you stock, sell, or plan ahead. Whether it’s adjusting for Colorado’s new rules or watching industry trends from those financials, this stuff hits your business directly. Got thoughts or topics you want me to dig into? Email us at insider@gunindustryinsider.com or reach out on X at @GunInsider. Stay tuned for the next episode—I’ll bring you more updates that matter to your shop or sales calls. Thanks for listening. Until next time!