Smith & Wesson Parent Company Sees Another Year of Falling Sales

American Outdoor Brands to limit ad spending and firearms production but expects sales growth to return next fiscal year

Smith & Wesson parent company American Outdoor Brands Corp. plans to lower advertising spending and firearms production to address what’s expected to be at least another year of falling gun sales.

Sales, which peaked just above $900 million in the business year ended in April 2017 fueled by concerns about tougher gun-ownership laws, are expected to fall for the third consecutive year.

Absent...