Sportsman's Warehouse Reports Decline in Net Sales and Net Loss in Q2 and H1 Fiscal 2024

Sportsman's Warehouse Holdings, Inc. reported its financial results for the second quarter and the first half of fiscal year 2024, which ended on August 3, 2024. The company experienced a decline in net sales, reporting $288.7 million for the quarter, a decrease of $20.8 million (6.7%) compared to $309.5 million in the same period of fiscal year 2023. For the first half, net sales totaled $533 million, down $44 million (7.6%) from $577 million in the prior year. Same store sales decreased by 9.8% for the quarter and 11.5% for the first half, primarily due to inflationary pressures affecting consumer discretionary spending.

Gross profit for the second quarter was $90 million, a decrease of $10.8 million (10.7%) from $100.8 million in the previous year, resulting in a gross margin of 31.2%, down from 32.6%. For the first half, gross profit fell to $163.8 million, down 9.4% from $180.9 million, with a gross margin of 30.7%, compared to 31.3% in the prior year. The company reported a loss from operations of $4.3 million for the second quarter, worsening from a loss of $1.5 million in the same period last year. The net loss for the quarter was $5.9 million, compared to a loss of $3.3 million in the prior year, resulting in a loss per share of $(0.16).

In terms of strategic developments, Sportsman's Warehouse opened six new stores since July 29, 2023, contributing $11.2 million to net sales. However, the company has no new store openings planned for fiscal year 2024, focusing instead on inventory reduction and cost management due to current sales trends. The company also recorded a decrease in selling, general, and administrative expenses by $8 million (7.8%) to $94.3 million for the second quarter, attributed to reductions in payroll and pre-opening expenses.

The company’s financial position showed total assets of $901.9 million and total liabilities of $658.9 million as of August 3, 2024. Cash and cash equivalents decreased to $2.6 million from $3.1 million at the end of the previous fiscal period. Sportsman's Warehouse has also entered into a term loan credit agreement, securing a $45 million facility, of which $25 million was outstanding as of the reporting date.

Overall, the company is navigating a challenging retail environment marked by macroeconomic uncertainties, including inflation and high interest rates, which have impacted consumer spending and sales performance across various product categories.