WEST JORDAN, Utah – Sportsman’s Warehouse (NASDAQ:) Holdings, Inc. (NASDAQ:SPWH) reported a larger-than-expected loss and a drop in revenue for the first quarter, sending its shares down 13% in response to the market reaction. The outdoor specialty retailer posted an adjusted loss per share of -$0.47, below analysts’ consensus estimate of -$0.33. Revenue for the quarter also missed expectations, coming in at $244.2 million versus the consensus estimate of $249.5 million.
The company’s first-quarter results reflect year-over-year revenue declines of $267.5 million, a decline of 8.7%. The decline was primarily due to lower consumer spending due to inflationary pressures, despite the opening of 11 new stores over the past year. Gross margins improved slightly, rising to 30.2% of net sales from 29.9% a year ago, driven by improved product mix in the fisheries category.
Sportsman’s Warehouse President and CEO Paul Stone commented on the results, saying, “Our results continue to be impacted by the challenging macro environment.” He emphasized the company’s focus on cost management and balance sheet health, as well as improving the customer experience through improved store layouts.
Looking ahead, the company reiterated its full-year 2024 guidance, expecting net sales of $1.15 billion to $1.23 billion, with the midpoint of that range slightly below analyst consensus of $1.201 billion. Adjusted EBITDA is forecast to be from 45 to 65 million dollars. Capital expenditures this year are expected to be between $20 million and $25 million, with a focus on technology investments to improve merchandising and store productivity. There are no plans to open new stores at this time.
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