Celebrity endorsements help small-cap weapons maker Byrna turn a profit

Shares of less-lethal weapons manufacturer Byrna Technologies, with a market capitalization of approximately $665 million, surged nearly 10% today, Monday, February 10. The company announced that in the fiscal year 2024, which ended November 30, it recorded a net profit versus a loss in the previous year and saw its revenue double. One of the reasons for this turnaround is its successful marketing strategy, Byrna explained. To promote its products, the company collaborates with celebrities – recently, for example, it signed a contract with the daughter-in-law of U.S. President Donald Trump.

Byrna shares jumped almost 10% at the open today on the Nasdaq to $29.64 per share. The gains pushed the stock above its record high from May 2007. Since the beginning of the year, the stock has gained just under 3%, while over the last 12 months it has surged 260%.

On Friday, February 7, Byrna announced that in fiscal-year 2024, which ended November 30, it earned $12.8 million in net profit versus a net loss of $8.2 million in fiscal-year 2023. The company’s revenue for the period increased 101% to $85.8 million, while its gross margin expanded 6 percentage points to 62%. According to the company’s CEO, Bryan Ganz, one reason for these improvements is its marketing strategy based on celebrity endorsements, which has boosted brand recognition and, consequently, increased the share of higher-margin direct-to-consumer sales.

Byrna has been in business for over 20 years. It began by developing products for the military and law enforcement but found success when it pivoted to retail customers – such as homeowners, hunters, and weapons collectors. Today, Byrna’s products are available in its own online store and on Amazon, and they are promoted by celebrities. In the fourth quarter of 2024, the company began collaborating with three additional celebrities: journalist Megyn Kelly, politician and author Charlie Kirk, and Trump’s daughter-in-law, Lara Trump, who recently launched her own show on Fox News. No relatives of a sitting president have ever hosted a high-profile show before, as the Guardian reports. 

Recently, Byrna also started a partnership with the U.S. Concealed Carry Association (USCCA), which will allow the company to promote its products among nearly a million USCCA members. Prior to this, Byrna announced an increase in domestic production of its weapons. These moves are key steps in Byrna’s “Made in America” strategy, pursued since 2020 and accelerated after Trump’s latest election as president.

In addition, Byrna is expanding its physical retail presence. It currently operates four proprietary stores, but that number could increase if its business model proves successful. Moreover, the company signed a letter of intent with sporting goods retailer Sportsman’s Warehouse. Under the terms of the agreement, partners will open Byrna-branded stores in 11 Sportsman’s Warehouse locations, and if the pilot program goes well, Byrna plans to open another 90 store-in-store locations by the end of the year.

According to MarketWatch, the three analysts covering Byrna unanimously have a “buy” call. Their average target price is $28.17 per share, which is 5% below the current share price.