American gun enthusiasts feared increase federal regulations on firearms in the wake of the 2012 Sandy Hook Elementary School shooting. Purchases skyrocketed and gun stores had to make massive orders to keep up with demand.
Almost two years later, gun stores have overstocked shelves and their suppliers have reported a drop in sales and profit, according to CNN Money. Sturm, Ruger & Co., one of the nation's leading gunmakers, reported its net sales over the last three months dropped to $98 million from $171 million a year ago.
The significant plunge hurt the company's stock price, and rival Smith & Wesson reported a similar drop.
Sturm, Ruger CEO Michael O. Fifer attributed the decline in retailer demand to a "reduction in overall consumer demand, combined with high inventory levels at retail and retailers buying fewer firearms than they were selling, in an effort to reduce their inventories and generate cash," according to the company's third quarter report.
Gun manufacturers will most likely reduce their production rate in the next year. For example, Sturm, Ruger is projected to produce 1 million guns compared to 1.9 million this year in order to avoid holding "a fire sale," according to CNN Money.
Assault rifles such as AR-15s and AK-47s flew off the shelves after the Newtown massacre, which pushed up prices and created a shortage of guns and ammo.
The FBI reported an increase in people who want to buy firearms based on background checks submitted. Background checks are required for most but no all gun transactions, and they rose in September to 1.46 million from 1.4 million the year before, according to CNN Money.
