[jyl]

You have to think back a little further. Gun industry was caught by surprise when gun demand slowed in late 2007. Sales fell sharply (growth went negative YOY), distributor and manufacturer inventory ballooned, manufacturers resported to heavy promotions to clear inventories. See SWHC stock chart and FBI NICS check data. Through most of 2008, industry was stuck in that slump - and recession hadn't even hit hard yet. Gun mania came just in time to save industry from the worst of the recession, and they had lots of excess inventory to take advantage of it.