Q: Can you provide more details on the Q2 early sales trend data and how you plan to manage ad spend, especially with the new CL launcher? A: Bryan Ganz, CEO: Our Return on Advertising Spend (ROAS) is typically lower at the start of the year, with Q1 in the mid-3s. We don’t anticipate needing much advertising for the CL launch, as we have over 700,000 opt-in email subscribers. We’ll focus on selling the CL to our existing customer base initially, reducing ad spend until August. We’ll ramp up advertising as we approach the profitable Q4 period.
Q: Could you outline the rollout sequence for the new CL launcher? A: Bryan Ganz, CEO: We aim to have 25,000 to 30,000 units ready before release due to high demand. Dealer orders start today, with 10,000 units allocated to them. Shipments to dealers begin April 21, and preorders start April 17. We’ll accept online orders from April 24, with the official release on May 1.
Q: Do you think Q1 was the low point in revenues for the year? A: Bryan Ganz, CEO: Personally, I believe Q1 was the low point. We expect sequential growth each quarter, driven by the anticipated success of the CL launcher.
Q: How many Sportsman’s Warehouse shop-in-shops are operational, and what are the learnings compared to your branded stores? A: Lauri Kearnes, CFO: Currently, one store is operational, with 13 more by May 1. We need to see momentum and interest. Sportsman’s has existing foot traffic, which helps drive sales. Having a Byrna expert in-store is crucial for engaging customers.
Q: What is the MSRP for the new CL compared to current products? A: Lauri Kearnes, CFO: The CL’s base price is $549.99, compared to $479.99 for the LE and $379 for the SD.
Q: Will the new CL launcher have the same ammo margin, and what colors will it be available in? A: Bryan Ganz, CEO: The 61-caliber ammo is slightly smaller but priced the same as 68-caliber. Initially, the CL will be available in orange and black, with pink and other colors planned. The CL is customizable, allowing for various accessories and colors.
Q: Is the CO2 cartridge for the new CL the same as previous models? A: Bryan Ganz, CEO: Yes, the CL uses the same 8-gram CO2 cartridge as the SD model.
Q: How will the point-of-sale displays differ from the shop-in-shops? A: Bryan Ganz, CEO: The 13 shop-in-shops will have a dedicated Byrna shooting experience. The 41 point-of-sale displays will be kiosks with $8,000 of Byrna products, offering a shooting experience but without dedicated sales staff.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
