TipRanks
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On June 13, Sturm, Ruger & Company provided a communication from Todd Seyfert, CEO, to its employees regarding his first 100 days and management’s ongoing corporate strategy initiatives, the company disclosed in a regulatory filing. In the letter to employees, Seyfert stated in part: “The last few months have been nothing short of transformative – and it’s thanks to your focus, dedication, and belief in what we’re building. As I have been doing since my first days as CEO, I wanted to update you all transparently and clearly about where I see our short-term and long-term future… With these bold moves, there comes a cost – both emotionally and financially. Change of this scale requires tough decisions, meaningful investment, and short-term impacts that we’ve chosen to take head-on to position Ruger for long-term strength… It is important to note that we are making these strategic decisions now – thoughtfully and intentionally – so that Ruger is positioned for consistency, stability, and profitable growth in 2026 and beyond. Yet, there will be a cost to the Company for 2025. We expect the expense-related to these initiatives to total approximately $15 million to $20 million over the remainder of the year. We additionally anticipate our price repositioning moves to impact our overall bottom line over that same period. Consequently, we currently believe that our results for the remainder of the year, before the one-time costs and expenses, will look more like prior periods, such as the latter part of 2019, where the Company continued to focus on executing its long-term strategy and delivering long-term value for shareholders in the face of broader industry challenges. These actions will be largely completed by the beginning of 2026, placing Ruger in a strong position for renewed growth and performance in the years to come. Importantly, none of this will slow our momentum when it comes to investing in what matters most, including aggressive new product development and expansion of capacity in areas where market demand exceeds our current ability to supply. We remain fully committed to profitable expansion, product innovation, agile responsiveness, and ensuring we meet the expectations of our customers and the marketplace.”
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