Sportsman's Warehouse Holdings, Inc. Announces Financial Highlights for the Eight Week Period Ended December 25, 2021
Sportsman's Warehouse (SPWH) reported financial highlights for the eight weeks ending December 25, 2021, revealing net sales of $299.6 million, flat from the prior year but a 59.3% increase from 2019. Same-store sales dropped 6.1%, although excluding firearms, they rose 2.8%. Ecommerce sales grew 2.5% year-over-year and surged 200% from 2019. The company also opened three new stores and received $55 million from a terminated merger with Great Outdoors Group. For Q4 2021, SPWH expects net sales of $405-410 million and EPS of $0.43-0.48.
- Net sales of $299.6 million, flat compared to 2020 but up 59.3% from 2019.
- Ecommerce sales increased by 200% from 2019.
- Opened three new stores, indicating expansion.
- Same-store sales decreased 6.1% year-over-year, indicating potential challenges in sales momentum.
- Guidance for Q4 includes expected headwinds in January due to previous high demand for firearms.
WEST JORDAN, Utah, Jan. 18, 2022 (GLOBE NEWSWIRE) -- Sportsman's Warehouse Holdings, Inc. ("Sportsman's Warehouse" or the “Company”) (Nasdaq: SPWH) today announced financial highlights for the eight weeks ended December 25, 2021.
“I am extremely proud of our team and the execution of our business through the holiday season of 2021.” said Jon Barker, Sportsman’s Warehouse CEO. “Overall our business showed tremendous strength across all categories despite a difficult comparison in firearms and ammunition. As we put the terminated merger process with Great Outdoors Group, LLC behind us, we are excited about the future and growth potential of the Company.”
For the eight weeks ended December 25, 2021:
- Net sales were
$299.6 million , which was flat versus the comparable eight weeks of fiscal year 2020. Compared to the same eight-week period of fiscal year 2019, net sales increased59.3% from$188.1 million . - Same store sales decreased
6.1% during the eight weeks of fiscal year 2021 compared to the eight weeks of fiscal year 2020. Excluding firearms and ammunition same store sales increased2.8% compared to the same eight-week period of fiscal year 2020. Compared to the same eight weeks of fiscal year 2019, same store sales increased38.7% . - Same store sales in the Footwear, Optics/Electronics/Accessories, and Clothing categories increased
15.7% ,6.7% , and4.4% , respectively, compared to the eight weeks of fiscal year 2020. - Ecommerce sales increased
2.5% compared to the same eight-week period of fiscal year 2020. Compared to the same eight-week period of fiscal year 2019, ecommerce sales increased approximately200% . - The Company opened three new stores, which were located in Chandler, AZ; Elk Grove, CA; and Greenwood, IN.
- The Company received
$55 million from the termination of its merger agreement with Great Outdoors Group, LLC and recorded a one-time gain.
Balance sheet highlights as of December 25, 2021:
- Cash on hand of
$57.4 million , no long-term debt and$39.9 million outstanding under our revolving credit facility. - Total liquidity of
$216.1 million , which is comprised of our$57.4 million cash on hand plus$158.7 million available borrowing capacity under our revolving credit facility
Fourth Quarter and Fiscal Year 2021 Outlook:
For the fourth quarter of fiscal year 2021, the Company expects net sales and adjusted diluted earnings per share to be in the range of
For the full fiscal year 2021 the Company expects net sales and adjusted diluted earnings per share to be in the range of
Investor Presentation
The Company updated its investor presentation to reflect its financial results through December 25, 2021 and its fourth quarter and full year guidance. The updated presentation is available on the Company’s website at www.sportsmans.com in the “Events and Presentations” tab of the “Investor Relations” section.
Non-GAAP Information
This press release includes the use of adjusted diluted earnings per share, which is a non-GAAP financial measure as defined by the Securities and Exchange Commission (the “SEC”). The Company defines adjusted diluted earnings per share as adjusted net income divided by diluted weighted average shares outstanding. The Company defines adjusted net income as net income adjusted for the
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The Company cannot assure investors that future developments affecting the Company will be those that it has anticipated. Actual results may differ materially from these expectations due to many factors including, but not limited to: the potential impact of the termination of our merger agreement with Great Outdoors Group, LLC, including any impact on our stock price, business, financial condition and results of operations, and the potential negative impact to our business and employee relationships; current and future government regulations, in particular regulations relating to the sale of firearms and ammunition, which may impact the supply and demand for the Company’s products and the Company’s ability to conduct its business; the impacts of COVID-19 and measures intended to reduce its spread on the Company’s operations; the Company’s retail-based business model, which is impacted by general economic, market and financial uncertainties that may cause a decline in consumer spending; the Company’s concentration of stores in the Western United States, which makes the Company susceptible to adverse conditions in this region and could affect the Company’s sales and cause its operating results to suffer; the highly fragmented and competitive industry in which the Company operates and the potential for increased competition; changes in consumer demands, including regional preferences, which the Company may not be able to identify and respond to in a timely manner; the Company’s entrance into new markets or operations in existing markets, which may not be successful; and other factors that are set forth in the Company's filings with the SEC, including under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended January 30, 2021 which was filed with the SEC on April 2, 2021, and the Company’s other public filings made with the SEC and available at www.sec.gov. If one or more of these risks or uncertainties materialize, or if any of the Company’s assumptions prove incorrect, the Company’s actual results may vary in material respects from those projected in these forward-looking statements. Any forward-looking statement made by the Company in this release speaks only as of the date on which the Company makes it. Factors or events that could cause the Company’s actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.
About Sportsman's Warehouse Holdings, Inc.
Sportsman’s Warehouse Holdings, Inc. is an outdoor specialty retailer focused on meeting the needs of the seasoned outdoor veteran, the first-time participant, and everyone in between. We provide outstanding gear and exceptional service to inspire outdoor memories.
For press releases and certain additional information about the Company, visit the Investor Relations section of the Company's website at www.sportsmans.com.
Investor Contacts:
ICR Inc.
Rachel Schacter
investors@sportsmans.com
SPORTSMAN’S WAREHOUSE HOLDINGS, INC. | ||||||||||||||||
GAAP and Non-GAAP Measures (Unaudited) | ||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||
Reconciliation of fourth quarter and 2021 full year guidance (in thousands, except per share data): | ||||||||||||||||
Estimated Q4 '21 | Estimated FY '21 | |||||||||||||||
Low | High | Low | High | |||||||||||||
Numerator: | ||||||||||||||||
Net income | $ | 57,597 | $ | 59,897 | $ | 107,633 | $ | 109,933 | ||||||||
Gain on Deal Termination, net of tax (1) | $ | (40,920 | ) | $ | (40,920 | ) | $ | (40,920 | ) | $ | (40,920 | ) | ||||
Acquisition costs, net of tax (2) | $ | 2,323 | $ | 2,323 | $ | 7,099 | $ | 7,092 | ||||||||
Adjusted net income | $ | 19,000 | $ | 21,300 | $ | 73,812 | $ | 76,105 | ||||||||
Denominator: | ||||||||||||||||
Diluted weighted average shares outstanding | 44,500 | 44,500 | 44,500 | 44,500 | ||||||||||||
Reconciliation of earnings per share: | ||||||||||||||||
Diluted earnings per share | $ | 1.29 | $ | 1.35 | $ | 2.42 | $ | 2.47 | ||||||||
Impact of adjustments to numerator and denominator | (0.87 | ) | (0.87 | ) | (0.76 | ) | (0.76 | ) | ||||||||
Adjusted diluted earnings per share | $ | 0.43 | $ | 0.48 | $ | 1.66 | $ | 1.71 | ||||||||
(1) Break-up fee received in conjunction with the termination of the pending merger with Great American Outdoor Group on December 2, 2021 | ||||||||||||||||
(2) Expenses incurred relating to the pending merger with Great American Outdoor Group which was terminated on December 2, 2021 |
FAQ
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