Sportsman’s Warehouse Reports 4.8% Decline in Q3 Sales, Net Loss of $364,000

Sportsman’s Warehouse Holdings, Inc. reported a decline in financial performance for the third quarter of fiscal year 2024, ending November 2, 2024. The company recorded net sales of $324.3 million, a decrease of 4.8% from $340.6 million in the same period of the previous year. The decline was attributed to ongoing consumer inflationary pressures that negatively impacted discretionary spending, leading to reduced store traffic and demand, particularly in the ammunition, apparel, and footwear categories. However, the Fishing, Optics, Electronics, Accessories, and Camping departments experienced growth, contributing to a partial offset of the overall sales decline.

In terms of profitability, Sportsman’s Warehouse reported a net loss of $364,000 for the quarter, compared to a loss of $1.3 million in the prior year. The gross profit remained relatively stable at $103.1 million, with a slight increase in gross margin to 31.8% from 30.3% year-over-year, primarily due to improved product margins in the Apparel and Footwear departments. Selling, general, and administrative expenses decreased marginally to $100 million, reflecting operational efficiencies and a strategic decision to halt new store openings for the fiscal year.

The company’s operational metrics showed a decrease in same-store sales by 5.7% for the quarter, with e-commerce sales accounting for over 18% of total sales. Sportsman’s Warehouse operated 146 stores across 32 states as of the reporting date, with plans to open one new store in fiscal year 2025. The company’s employee headcount remained stable, supporting its operational needs amid the challenging market conditions.

Financially, Sportsman’s Warehouse reported total assets of $967.7 million and total liabilities of $724.1 million as of November 2, 2024. The company’s long-term debt included a $25 million term loan and $145.7 million outstanding under its revolving credit facility. The interest expense for the quarter decreased to $3.3 million, reflecting reduced borrowings and a higher weighted average interest rate. The company emphasized its commitment to managing costs and reducing inventory levels in response to the current economic environment.

Looking ahead, Sportsman’s Warehouse remains cautious about the macroeconomic landscape, including inflation and potential recession risks. The company plans to prioritize debt repayment and maintain financial discipline while monitoring market conditions closely. Management expressed optimism about future growth opportunities, particularly in enhancing e-commerce capabilities and improving customer engagement through targeted marketing efforts.