America’s gun stores are overstocked

by Aaron Smith | CNN.com  |  published on November 1, 2014

141031085613-sturm-ruger-guns-620xaNEW YORK (CNNMoney) | There’s a glut of guns for sale in America.

Gun dealers have overstocked, and now they’re just selling off the inventory that they have, without ordering much from manufacturers.

Gun sales surged to unprecedented levels following the Newtown massacre of December 2012, driven by concerns about increased federal regulations, particularly against assault rifles.

Back then, Americans were buying AR-15s and AK-47s as fast as retailers could get them, pushing up prices and creating shortages of guns and ammo.

The stores couldn’t order them fast enough. But they over ordered and now there are too many guns sitting on their shelves.

Sturm, Ruger (RGR) of Southport, Conn., one of the most prominent gunmakers, reported a plunge in sales and profit this week that sent its stock into a tail spin on Thursday. Net sales over three months went to $98 million from $171 million a year ago.

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