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Sportsman's warehouse shares tumble on earnings miss

EditorLina Guerrero
Published 06/04/2024, 04:21 PM
© Reuters.
SPWH
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WEST JORDAN, Utah - Sportsman's Warehouse (NASDAQ:SPWH) Holdings, Inc. (NASDAQ:SPWH) reported a larger-than-expected loss and a revenue miss for the first quarter, sending its shares down 13% in market response. The outdoor specialty retailer announced an adjusted loss per share of -$0.47, which fell short of the analyst consensus estimate of -$0.33. Revenue for the quarter also missed expectations, coming in at $244.2 million against the consensus estimate of $249.5 million.

The company's first-quarter performance reflects a decline from the previous year's revenue of $267.5 million, marking an 8.7% decrease. This reduction was primarily attributed to lower consumer spending due to inflationary pressures, despite the opening of 11 new stores over the past year. Gross profit margin saw a slight improvement, rising to 30.2% of net sales compared to 29.9% a year ago, benefiting from a better product mix in the fishing category.

Sportsman's Warehouse's President and CEO, Paul Stone, commented on the results, stating, "Our results continue to be affected by a challenging macroenvironment." He emphasized the company's focus on managing expenses and balance sheet health, as well as improving the customer experience through store layout enhancements.

Looking ahead, the company reaffirmed its full-year 2024 guidance, expecting net sales to range between $1.15 billion and $1.23 billion, with the midpoint of this range slightly below the analyst consensus of $1.201 billion. Adjusted EBITDA is projected to be between $45 million and $65 million. Capital expenditures for the year are anticipated to be between $20 million and $25 million, focusing on technology investments to boost merchandising and store productivity. No new store openings are currently planned.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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