Sportsman's Warehouse Holdings, Inc. Announces Third Quarter 2024 Financial Results
Sportsman's Warehouse (SPWH) reported Q3 2024 financial results with net sales of $324.3 million, down 4.8% year-over-year. The company experienced a same-store sales decrease of 5.7%, primarily due to consumer inflationary pressures affecting discretionary spending.
Gross profit margin improved to 31.8%, up 150 basis points from last year. The company reported a net loss of $0.4 million, with adjusted EBITDA of $16.4 million. Growth was noted in fishing, camping, and gift bar categories, while ammunition, apparel, and footwear saw declines.
The company adjusted its FY2024 guidance, projecting net sales between $1.18-1.20 billion and adjusted EBITDA of $23-29 million. Management aims to reduce inventory below $350 million and plans to open one new store in fiscal 2025.
Sportsman's Warehouse (SPWH) ha riportato i risultati finanziari del Q3 2024 con vendite nette pari a 324,3 milioni di dollari, in calo del 4,8% rispetto all'anno precedente. L'azienda ha registrato una riduzione delle vendite same-store del 5,7%, principalmente a causa delle pressioni inflazionistiche sui consumatori che hanno influenzato la spesa discrezionale.
Il margine di profitto lordo è migliorato al 31,8%, con un aumento di 150 punti base rispetto all'anno scorso. L'azienda ha riportato una perdita netta di 0,4 milioni di dollari, con un EBITDA rettificato di 16,4 milioni di dollari. Sono stati riscontrati segni di crescita nelle categorie di pesca, campeggio e articoli regalo, mentre munizioni, abbigliamento e calzature hanno visto un declino.
L'azienda ha aggiornato le sue previsioni per l'anno fiscale 2024, prevedendo vendite nette tra 1,18 e 1,20 miliardi di dollari e un EBITDA rettificato di 23-29 milioni di dollari. La direzione punta a ridurre l'inventario sotto i 350 milioni di dollari e prevede di aprire un nuovo negozio nell'anno fiscale 2025.
Sportsman's Warehouse (SPWH) informó sobre los resultados financieros del Q3 2024 con ventas netas de 324,3 millones de dólares, lo que representa una disminución del 4,8% en comparación con el año anterior. La empresa experimentó una disminución en las ventas en tiendas comparables del 5,7%, principalmente debido a las presiones inflacionarias que afectan el gasto discrecional de los consumidores.
El margen de beneficio bruto mejoró al 31,8%, un aumento de 150 puntos básicos respecto al año pasado. La empresa reportó una pérdida neta de 0,4 millones de dólares, con un EBITDA ajustado de 16,4 millones de dólares. Hubo un crecimiento en las categorías de pesca, camping y artículos de regalo, mientras que las municiones, la vestimenta y el calzado experimentaron descensos.
La empresa ajustó sus proyecciones para el FY2024, proyectando ventas netas entre 1,18 y 1,20 mil millones de dólares y un EBITDA ajustado de 23-29 millones de dólares. La dirección busca reducir el inventario por debajo de los 350 millones de dólares y planea abrir una nueva tienda en el año fiscal 2025.
스포츠맨스 창고(SPWH)는 2024년 3분기 재무 결과를 보고하며 순매출이 3억 2,430만 달러로 지난해 대비 4.8% 감소했다고 발표했습니다. 회사는 동일 점포 매출이 5.7% 감소했다고 밝혔다. 이는 주로 소비자 물가 인상 압박으로 인해 선택적 지출에 영향을 미쳤기 때문입니다.
매출 총이익률은 31.8%로 개선되어 지난해 대비 150 베이시스 포인트 상승했습니다. 회사는 순손실 40만 달러를 기록했으며, 조정 EBITDA는 1,640만 달러입니다. 낚시, 캠핑 및 선물 바 카테고리에서 성장이 있었으나, 탄약, 의류 및 신발 부문은 감소했습니다.
회사는 2024 회계연도 가이드를 조정하여 순매출이 11억 8천만 달러에서 12억 달러 사이이고 조정 EBITDA가 2,300만에서 2,900만 달러가 될 것으로 예상하고 있습니다. 경영진은 재고를 3억 5천만 달러 이하로 줄일 계획이며, 2025 회계연도에 새로운 매장을 하나 열 계획입니다.
Sportsman's Warehouse (SPWH) a annoncé les résultats financiers du troisième trimestre 2024, avec des ventes nettes de 324,3 millions de dollars, en baisse de 4,8 % par rapport à l'année précédente. L'entreprise a connu une diminution des ventes en magasin comparables de 5,7 %, principalement en raison des pressions inflationnistes sur les consommateurs qui affectent les dépenses discrétionnaires.
La marge brute s'est améliorée à 31,8 %, soit 150 points de base de plus par rapport à l'année dernière. La société a signalé une perte nette de 0,4 million de dollars, avec un EBITDA ajusté de 16,4 millions de dollars. Une croissance a été observée dans les catégories de pêche, de camping et de cadeaux, tandis que les ventes de munitions, de vêtements et de chaussures ont diminué.
L'entreprise a ajusté ses prévisions pour l'exercice 2024, projetant des ventes nettes entre 1,18 et 1,20 milliard de dollars et un EBITDA ajusté de 23 à 29 millions de dollars. La direction vise à réduire les stocks à moins de 350 millions de dollars et prévoit d'ouvrir un nouveau magasin au cours de l'exercice 2025.
Sportsman's Warehouse (SPWH) hat die finanziellen Ergebnisse für das 3. Quartal 2024 berichtet, mit Nettoverkäufen von 324,3 Millionen Dollar, was einem Rückgang von 4,8 % im Jahresvergleich entspricht. Das Unternehmen verzeichnete einen Rückgang der Same-Store-Verkäufe um 5,7%, was hauptsächlich auf Inflationsdruck bei den Verbrauchern zurückzuführen ist, der die diskretionären Ausgaben beeinträchtigt.
Die Bruttogewinnmarge verbesserte sich auf 31,8 % und stieg um 150 Basispunkte im Vergleich zum Vorjahr. Das Unternehmen meldete einen Nettoverlust von 0,4 Millionen Dollar, mit einem bereinigten EBITDA von 16,4 Millionen Dollar. Ein Wachstum wurde in den Kategorien Angeln, Camping und Geschenkartikeln festgestellt, während Munition, Bekleidung und Schuhe Rückgänge verzeichneten.
Das Unternehmen hat seine Prognose für das Geschäftsjahr 2024 angepasst und erwartet Nettoverkäufe zwischen 1,18 und 1,20 Milliarden Dollar sowie ein bereinigtes EBITDA von 23-29 Millionen Dollar. Das Management plant, den Lagerbestand unter 350 Millionen Dollar zu reduzieren und beabsichtigt, im Geschäftsjahr 2025 ein neues Geschäft zu eröffnen.
- Gross profit margin improved by 150 basis points to 31.8%
- Growth achieved in fishing, camping, and gift bar categories
- Adjusted EBITDA increased to $16.4M from $16.2M YoY
- Reduced net loss to $0.4M from $1.3M in Q3 2023
- Net sales decreased 4.8% to $324.3M
- Same-store sales declined 5.7%
- Net debt of $151.3M as of quarter end
- Reduced full-year guidance for FY2024
- Year-to-date net loss increased to $24.3M from $20.3M
Insights
Sportsman's Warehouse's Q3 results reflect ongoing challenges with net sales declining 4.8% to
The company's guidance revision and inventory management strategy are concerning. With projected FY2024 sales of
The retailer's performance indicates broader sector challenges, with discretionary spending pressure particularly evident in ammunition, apparel and footwear categories. The shift to value-focused marketing and promotional activity, while necessary for traffic generation, suggests margin pressures will persist. The bright spots in fishing, camping and gift bar categories demonstrate some resilience in outdoor recreation spending.
The company's strategic pivot towards omni-channel marketing and enhanced store experience shows adaptation to changing consumer behavior, but the reduced guidance and defensive inventory stance reflect continued uncertainty in the outdoor retail sector. The focus on core product availability during key seasons while managing down overall inventory levels will be critical for maintaining market position.
WEST JORDAN, Utah, Dec. 10, 2024 (GLOBE NEWSWIRE) -- Sportsman's Warehouse Holdings, Inc. (“Sportsman's Warehouse” or the “Company”) (Nasdaq: SPWH) today announced third quarter financial results for the thirteen and thirty-nine weeks ended November 2, 2024.
“Despite a pressured consumer and complex macroeconomic environment, we focused our efforts on driving sales and achieved growth in our fishing, camping and gift bar categories during the quarter,” said Paul Stone, Sportsman’s Warehouse President and Chief Executive Officer. “We continue to make progress on our business reset initiatives with a focus on improved in-stocks, in-store and online customer experience and our Great Gear | Great Service program.”
“To improve our holiday relevancy and drive traffic during the season, we introduced an omni-channel marketing campaign highlighting gear perfect for gifting or for treating yourself, primarily centered around value,” continued Stone. “This is a new approach to engaging our customers, which we coupled with an upgraded store experience creating a fully integrated customer experience. As we move through the balance of the holiday season and navigate a pressured consumer environment, we’ll continue to prioritize traffic-driving marketing and product pricing initiatives, exceptional customer service and prudent inventory management. Emphasizing the balance sheet and ending the year with positive free cash flow remain our primary objectives.”
For the thirteen weeks ended November 2, 2024:
- Net sales were
$324.3 million , a decrease of4.8% , compared to$340.6 million in the third quarter of fiscal year 2023. The net sales decrease was primarily due to the continued impact of consumer inflationary pressures on discretionary spending, resulting in a decline in store traffic and lower demand across most product categories, particularly in ammunition, apparel and footwear. This decrease, however, was partially offset by year-over-year sales growth in our fishing, camping and optics and accessories departments. - Same store sales decreased
5.7% during the third quarter of fiscal year 2024, compared to the third quarter of fiscal year 2023, primarily as a result of the impact of consumer inflationary pressures and recessionary concerns on discretionary spending. - Gross profit was
$103.1 million , or31.8% of net sales, compared to$103.2 million or30.3% of net sales in the third quarter of fiscal year 2023. This 150 basis-point increase, as a percentage of net sales, was primarily driven by improved product margins in our apparel and footwear departments, partially offset by increased freight and shrink. - Selling, general, and administrative (SG&A) expenses were
$100.0 million , or30.8% of net sales, compared to$100.1 million , or29.4% of net sales in the third quarter of fiscal year 2023. - Net loss was
$(0.4) million , compared to a net loss of$(1.3) million in the third quarter of fiscal year 2023. Adjusted net income was$1.4 million , compared to adjusted net loss of$(0.2) million in the third quarter of fiscal year 2023 (see “GAAP and Non-GAAP Financial Measures”). - Adjusted EBITDA was
$16.4 million , compared to$16.2 million in the third quarter of fiscal year 2023 (see "GAAP and Non-GAAP Financial Measures"). - Diluted loss per share was
$(0.01) , compared to diluted loss per share of$(0.04) in the third quarter of fiscal year 2023. Adjusted diluted earnings per share were$0.04 , compared to adjusted diluted loss per share of$(0.01) for the third quarter of fiscal year 2023 (see "GAAP and Non-GAAP Financial Measures").
For the thirty-nine weeks ended November 2, 2024:
- Net sales were
$857.2 million , a decrease of6.6% , compared to$917.6 million in the first nine months of fiscal year 2023. This net sales decrease was primarily driven by lower demand across most product categories due to current consumer inflationary pressures on discretionary spending. This decrease was partially offset by same store sales growth in our fishing department and the opening of 1 new store since October 28, 2023. Stores that have been open for less than 12 months and were not included in our same store sales, contributed$30.8 million to net sales. - Same store sales decreased
9.4% compared to the first nine months of fiscal year 2023, primarily as a result of the same factors noted above that impacted net sales. - Gross profit was
$266.9 million or31.1% of net sales, compared to$284.0 million or31.0% of net sales for the first nine months of fiscal year 2023. This increase, as a percentage of net sales, was primarily due to higher overall product margins, versus last years apparel and footwear clearance events which put pressure on our gross margin, partially offset by increased shrink. - SG&A expenses decreased to
$288.7 million or33.6% of net sales, compared with$301.5 million or32.9% of net sales for the first nine months of fiscal year 2023. This absolute dollar decrease primarily related to our ongoing cost reduction efforts and decision to not open new stores during fiscal year 2024, partially offset by increases in rent and depreciation expenses. The increase as a percentage of net sales was largely due to lower net sales. - Net loss was
$(24.3) million , compared to net loss of$(20.3) million in the first nine months of fiscal year 2023. Adjusted net loss was$(21.7) million , compared to adjusted net loss of$(16.6) million in the first nine months of fiscal year 2023 (see “GAAP and Non-GAAP Financial Measures”). - Adjusted EBITDA was
$15.1 million , compared to$19.3 million in the first nine months of fiscal year 2023 (see "GAAP and Non-GAAP Financial Measures"). - Diluted loss per share was
$(0.65) , compared to diluted loss per share of$(0.54) in the first nine months of fiscal year 2023. Adjusted diluted loss per share was$(0.58) , compared to adjusted diluted loss per share of$(0.44) in the first nine months of fiscal year 2023 (see "GAAP and Non-GAAP Financial Measures").
Balance sheet and capital allocation highlights as of November 2, 2024:
- The Company ended the third quarter with net debt of
$151.3 million , comprised of$130.0 million of borrowings outstanding under the Company’s revolving credit facility,$24.0 million of net borrowings outstanding under the Company’s term loan facility, and$2.7 million of cash and cash equivalents. Inventory at the end of the third quarter was$438.1 million . - Total liquidity was
$150.8 million as of the end of the third quarter of fiscal year 2024, comprised of$148.1 million of availability under the Company’s revolving credit facility and term loan facility and$2.7 million of cash and cash equivalents.
Company Outlook:
“Given the current consumer environment and the shift towards value and promotion-driven shopping, we intensified our marketing and advertising campaigns to drive sales, which placed additional pressure on our margins this quarter,” said Jeff White, Chief Financial Officer of Sportsman’s Warehouse “To ensure strong core product in-stocks and to bring fresh offerings to our stores, we made strategic inventory investments aimed at improving sales during the hunting and holiday seasons. As we progress through the remainder of the year, we will remain disciplined in managing our expenses, and will reduce total inventory levels to generate positive free cash flow. Our mid and long-term objectives will be centered on improving our topline with a focus on margins and profitability.”
The Company is adjusting its guidance for fiscal year 2024 and expects net sales to be in the range of
The Company has not reconciled expected adjusted EBITDA for fiscal year 2024 to GAAP net income because the Company does not provide guidance for net (loss) income and is not able to provide a reconciliation to net (loss) income without unreasonable effort. The Company is not able to estimate net (loss) income on a forward-looking basis without unreasonable efforts due to the variability and complexity with respect to the charges excluded from Adjusted EBITDA, including stock-based compensation expense.
Conference Call Information
A conference call to discuss third quarter 2024 financial results is scheduled for December 10, 2024, at 5:00 PM Eastern Time. The conference call will be held via webcast and may be accessed via the Investor Relations section of the Company’s website at www.sportsmans.com.
Non-GAAP Financial Measures
This press release includes the following financial measures defined as non-GAAP financial measures by the Securities and Exchange Commission (the “SEC”) and that are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”): adjusted net (loss) income, adjusted diluted (loss) earnings per share and adjusted EBITDA. The Company defines adjusted net (loss) income as net (loss) income plus expenses incurred relating to director and officer transition costs, costs related to the implementation of our cost reduction plan, costs related to legal settlements and related fees and expenses, and fees and expenses related to a settlement in the cancellation of a contract related to our information technology systems. Net (loss) income is the most comparable GAAP financial measure to adjusted net (loss) income. The Company defines adjusted diluted (loss) earnings per share as adjusted net (loss) income divided by diluted weighted average shares outstanding. Diluted (loss) earnings per share is the most comparable GAAP financial measure to adjusted diluted (loss) earnings per share. The Company defines Adjusted EBITDA as net (loss) income plus interest expense, income tax (benefit) expense, depreciation and amortization, stock-based compensation expense, director and officer transition costs, costs related to the implementation of our cost reduction plan, a legal settlement and related fees and expenses, and fees and expenses related to a settlement in the cancellation of a contract related to our information technology systems. Net (loss) income is the most comparable GAAP financial measure to adjusted EBITDA. The Company has reconciled these non-GAAP financial measures to the most directly comparable GAAP financial measures under “GAAP and Non-GAAP Financial Measures” in this release. As noted above, the Company has not provided a reconciliation of fiscal year 2024 guidance for Adjusted EBITDA, in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K.
The Company believes that these non-GAAP financial measures not only provide its management with comparable financial data for internal financial analysis but also provide meaningful supplemental information to investors and are frequently used by analysts, investors and other interested parties in the evaluation of companies in the Company’s industry. Specifically, these non-GAAP financial measures allow investors to better understand the performance of the Company’s business and facilitate a more meaningful comparison of its diluted (loss) earnings per share and actual results on a period-over-period basis. The Company has provided this information as a means to evaluate the results of its ongoing operations. Management uses this information as additional measurement tools for purposes of business decision-making, including evaluating store performance, developing budgets and managing expenditures. Other companies in the Company’s industry may calculate these items differently than the Company does. Each of these measures is not a measure of performance under GAAP and should not be considered as a substitute for the most directly comparable financial measures prepared in accordance with GAAP. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. The Company’s management believes that these non-GAAP financial measures allow investors to evaluate the Company’s operating performance and compare its results of operations from period to period on a consistent basis by excluding items that management does not believe are indicative of the Company’s core operating performance. The presentation of such measures, which may include adjustments to exclude unusual or non-recurring items, should not be construed as an inference that the Company’s future results, cash flows or leverage will be unaffected by other unusual or non-recurring items.
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. Forward-looking statements in this release include, but are not limited to, statements regarding our progress on our business reset initiatives; our prioritization of traffic-driving marketing and product pricing initiatives, exceptional customer service and prudent inventory management; our emphasis on the balance sheet and ending the year with positive free cash flow; our ability to manage expenses, reduce total inventory levels to generate positive free cash flow; and our guidance for net sales and Adjusted EBITDA for fiscal year 2024. Investors can identify these statements by the fact that they use words such as “aim,” “anticipate,” “assume,” “believe,” “can have,” “could,” “due,” “estimate,” “expect,” “goal,” “intend,” “likely,” “may,” “objective,” “plan,” “positioned,” “potential,” “predict,” “should,” “target,” “will,” “would” and similar terms and phrases. These forward-looking statements are based on current expectations, estimates, forecasts and projections about our business and the industry in which we operate and our management’s beliefs and assumptions. We derive many of our forward-looking statements from our own operating budgets and forecasts, which are based upon many detailed assumptions. While we believe that our assumptions are reasonable, we caution that predicting the impact of known factors is very difficult, and we cannot anticipate all factors that could affect our actual results. 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: 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 ability to conduct its business; the Company’s retail-based business model which is impacted by general economic and market conditions and 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 the Company’s 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 we 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, including the Company’s plans to open additional stores in future periods, which may not be successful; the Company’s implementation of a plan to reduce expenses in response to adverse macroeconomic conditions, including an increased focus on financial discipline and rigor throughout the Company’s organization; impact of general macroeconomic conditions, such as labor shortages, inflation, elevated interest rates, economic slowdowns, and recessions or market corrections; 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 Form 10-K for the fiscal year ended February 3, 2024, which was filed with the SEC on April 4, 2024, 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 Contact:
Riley Timmer
Vice President, Investor Relations
Sportsman’s Warehouse
(801) 304-2816
investors@sportsmans.com
| SPORTSMAN’S WAREHOUSE HOLDINGS, INC. Condensed Consolidated Statements of Operations (Unaudited) (amounts in thousands, except per share data) | |||||||||||||||||||
| For the Thirteen Weeks Ended | |||||||||||||||||||
| November 2, 2024 | % of net sales | October 28, 2023 | % of net sales | YOY Variance | |||||||||||||||
| Net sales | $ | 324,261 | 100.0 | % | $ | 340,569 | 100.0 | % | $ | (16,308 | ) | ||||||||
| Cost of goods sold | 221,173 | 68.2 | % | 237,384 | 69.7 | % | (16,211 | ) | |||||||||||
| Gross profit | 103,088 | 31.8 | % | 103,185 | 30.3 | % | (97 | ) | |||||||||||
| Operating expenses: | |||||||||||||||||||
| Selling, general and administrative expenses | 99,973 | 30.8 | % | 100,113 | 29.4 | % | (140 | ) | |||||||||||
| Income from operations | 3,115 | 1.0 | % | 3,072 | 0.9 | % | 43 | ||||||||||||
| Interest expense | 3,317 | 1.1 | % | 3,944 | 1.2 | % | (627 | ) | |||||||||||
| Other losses | - | 0.0 | % | - | 0.0 | % | - | ||||||||||||
| Loss before income taxes | (202 | ) | (0.1 | %) | (872 | ) | (0.3 | %) | 670 | ||||||||||
| Income tax expense | 162 | 0.0 | % | 459 | 0.1 | % | (297 | ) | |||||||||||
| Net loss | $ | (364 | ) | (0.1 | %) | $ | (1,331 | ) | (0.4 | %) | $ | 967 | |||||||
| Loss per share | |||||||||||||||||||
| Basic | $ | (0.01 | ) | $ | (0.04 | ) | $ | 0.03 | |||||||||||
| Diluted | $ | (0.01 | ) | $ | (0.04 | ) | $ | 0.03 | |||||||||||
| Weighted average shares outstanding | |||||||||||||||||||
| Basic | 37,869 | 37,393 | 476 | ||||||||||||||||
| Diluted | 37,869 | 37,393 | 476 | ||||||||||||||||
| SPORTSMAN’S WAREHOUSE HOLDINGS, INC. Condensed Consolidated Statements of Operations (Unaudited) (amounts in thousands, except per share data) | |||||||||||||||||||
| For the Thirty-Nine Weeks Ended | |||||||||||||||||||
| November 2, 2024 | % of net sales | October 28, 2023 | % of net sales | YOY Variance | |||||||||||||||
| Net sales | $ | 857,235 | 100.0 | % | $ | 917,593 | 100.0 | % | $ | (60,358 | ) | ||||||||
| Cost of goods sold | 590,343 | 68.9 | % | 633,547 | 69.0 | % | (43,204 | ) | |||||||||||
| Gross profit | 266,892 | 31.1 | % | 284,046 | 31.0 | % | (17,154 | ) | |||||||||||
| Operating expenses: | |||||||||||||||||||
| Selling, general and administrative expenses | 288,727 | 33.6 | % | 301,450 | 32.9 | % | (12,723 | ) | |||||||||||
| Loss from operations | (21,835 | ) | (2.5 | %) | (17,404 | ) | (1.9 | %) | (4,431 | ) | |||||||||
| Interest expense | 9,408 | 1.1 | % | 9,518 | 1.0 | % | (110 | ) | |||||||||||
| Other losses | 457 | 0.1 | % | - | 0.0 | % | 457 | ||||||||||||
| Loss before income taxes | (31,700 | ) | (3.7 | %) | (26,922 | ) | (2.9 | %) | (4,778 | ) | |||||||||
| Income tax benefit | (7,364 | ) | (0.9 | %) | (6,664 | ) | (0.7 | %) | (700 | ) | |||||||||
| Net loss | $ | (24,336 | ) | (2.8 | %) | $ | (20,258 | ) | (2.2 | %) | $ | (4,078 | ) | ||||||
| Loss per share | |||||||||||||||||||
| Basic | $ | (0.65 | ) | $ | (0.54 | ) | $ | (0.11 | ) | ||||||||||
| Diluted | $ | (0.65 | ) | $ | (0.54 | ) | $ | (0.11 | ) | ||||||||||
| Weighted average shares outstanding | |||||||||||||||||||
| Basic | 37,729 | 37,500 | 229 | ||||||||||||||||
| Diluted | 37,729 | 37,500 | 229 | ||||||||||||||||
| SPORTSMAN’S WAREHOUSE HOLDINGS, INC. Condensed Consolidated Balance Sheets (Unaudited) (amounts in thousands, except par value data) | |||||||
| November 2, | February 3, | ||||||
| 2024 | 2024 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 2,666 | $ | 3,141 | |||
| Accounts receivable, net | 1,447 | 2,119 | |||||
| Income tax receivable | 523 | — | |||||
| Merchandise inventories | 438,136 | 354,710 | |||||
| Prepaid expenses and other | 19,745 | 20,078 | |||||
| Total current assets | 462,517 | 380,048 | |||||
| Operating lease right of use asset | 320,729 | 309,377 | |||||
| Property and equipment, net | 175,181 | 194,452 | |||||
| Goodwill | 1,496 | 1,496 | |||||
| Deferred tax asset | 7,480 | 505 | |||||
| Definite lived intangibles, net | 282 | 327 | |||||
| Total assets | $ | 967,685 | $ | 886,205 | |||
| Liabilities and Stockholders' Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 112,690 | $ | 56,122 | |||
| Accrued expenses | 95,094 | 83,665 | |||||
| Income taxes payable | — | 126 | |||||
| Operating lease liability, current | 48,866 | 48,693 | |||||
| Revolving line of credit | 130,042 | 126,043 | |||||
| Total current liabilities | 386,692 | 314,649 | |||||
| Long-term liabilities: | |||||||
| Term loan, net | 23,969 | — | |||||
| Operating lease liability, noncurrent | 313,454 | 307,000 | |||||
| Total long-term liabilities | 337,423 | 307,000 | |||||
| Total liabilities | 724,115 | 621,649 | |||||
| Commitments and contingencies | |||||||
| Stockholders' equity: | |||||||
| Preferred stock, $.01 par value; 20,000 shares authorized; 0 shares issued and outstanding | — | — | |||||
| Common stock, $.01 par value; 100,000 shares authorized; 37,957 and 37,529 shares issued and outstanding, respectively | 379 | 375 | |||||
| Additional paid-in capital | 85,144 | 81,798 | |||||
| Accumulated earnings | 158,047 | 182,383 | |||||
| Total stockholders' equity | 243,570 | 264,556 | |||||
| Total liabilities and stockholders' equity | $ | 967,685 | $ | 886,205 | |||
| SPORTSMAN’S WAREHOUSE HOLDINGS, INC. Condensed Consolidated Statements Cash Flows (Unaudited) (amounts in thousands) | |||||||
| Thirty-Nine Weeks Ended | |||||||
| November 2, | October 28, | ||||||
| 2024 | 2023 | ||||||
| Cash flows from operating activities: | |||||||
| Net loss | $ | (24,336 | ) | $ | (20,258 | ) | |
| Adjustments to reconcile net income to net cash used in operating activities: | |||||||
| Depreciation of property and equipment | 30,491 | 28,367 | |||||
| Amortization of discount on debt and deferred financing fees | 217 | 114 | |||||
| Amortization of definite lived intangible | 45 | 45 | |||||
| Loss on asset dispositions | 501 | — | |||||
| Noncash lease expense | 3,239 | 24,493 | |||||
| Deferred income taxes | (6,975 | ) | (6,664 | ) | |||
| Stock-based compensation | 3,438 | 3,341 | |||||
| Change in operating assets and liabilities, net of amounts acquired: | |||||||
| Accounts receivable, net | 673 | (1,051 | ) | ||||
| Operating lease liabilities | (7,964 | ) | (10,539 | ) | |||
| Merchandise inventories | (83,426 | ) | (47,196 | ) | |||
| Prepaid expenses and other | 220 | (7,403 | ) | ||||
| Accounts payable | 56,128 | 26,081 | |||||
| Accrued expenses | 9,727 | (4,413 | ) | ||||
| Income taxes payable and receivable | (649 | ) | (1,554 | ) | |||
| Net cash used in operating activities | (18,671 | ) | (16,637 | ) | |||
| Cash flows from investing activities: | |||||||
| Purchase of property and equipment, net of amounts acquired | (11,305 | ) | (71,170 | ) | |||
| Proceeds from sale of property and equipment | 55 | — | |||||
| Net cash used in investing activities | (11,250 | ) | (71,170 | ) | |||
| Cash flows from financing activities: | |||||||
| Net borrowings on line of credit | 3,999 | 97,885 | |||||
| Borrowings on term loan | 25,000 | — | |||||
| Increase (Decrease) in book overdraft | 1,670 | (5,611 | ) | ||||
| Proceeds from issuance of common stock per employee stock purchase plan | 208 | 456 | |||||
| Payments to acquire treasury stock | — | (2,748 | ) | ||||
| Payment of withholdings on restricted stock units | (296 | ) | (1,649 | ) | |||
| Payment of deferred financing costs and discount on term loan | (1,135 | ) | — | ||||
| Net cash provided by financing activities | 29,446 | 88,333 | |||||
| Net change in cash and cash equivalents | (475 | ) | 526 | ||||
| Cash and cash equivalents at beginning of period | 3,141 | 2,389 | |||||
| Cash and cash equivalents at end of period | $ | 2,666 | $ | 2,915 | |||
| SPORTSMAN’S WAREHOUSE HOLDINGS, INC. GAAP and Non-GAAP Financial Measures (Unaudited) (amounts in thousands, except per share data) | |||||||||||||||
| The following table presents the reconciliations of (i) GAAP net loss to adjusted net loss and (ii) GAAP diluted loss per share to adjusted diluted loss per share: | |||||||||||||||
| For the Thirteen Weeks Ended | For the Thirty-Nine Weeks Ended | ||||||||||||||
| November 2, 2024 | October 28, 2023 | November 2, 2024 | October 28, 2023 | ||||||||||||
| Numerator: | |||||||||||||||
| Net loss | $ | (364 | ) | $ | (1,331 | ) | $ | (24,336 | ) | $ | (20,258 | ) | |||
| Director and officer transition costs (1) | 279 | 1,180 | 709 | 3,067 | |||||||||||
| Cancelled contract (2) | 205 | - | 911 | - | |||||||||||
| Cost reduction plan (3) | - | 351 | - | 1,216 | |||||||||||
| Legal settlement (4) | 1,750 | - | 1,750 | 687 | |||||||||||
| Less tax benefit | (519 | ) | (398 | ) | (783 | ) | (1,292 | ) | |||||||
| Adjusted net loss | $ | 1,351 | $ | (198 | ) | $ | (21,749 | ) | $ | (16,580 | ) | ||||
| Denominator: | |||||||||||||||
| Diluted weighted average shares outstanding | 37,869 | 37,393 | 37,729 | 37,500 | |||||||||||
| Reconciliation of loss per share: | |||||||||||||||
| Diluted loss per share: | $ | (0.01 | ) | $ | (0.04 | ) | $ | (0.65 | ) | $ | (0.54 | ) | |||
| Impact of adjustments to numerator and denominator | 0.05 | 0.03 | 0.07 | 0.10 | |||||||||||
| Adjusted diluted loss per share: | $ | 0.04 | $ | (0.01 | ) | $ | (0.58 | ) | $ | (0.44 | ) | ||||
| (1) Expenses incurred relating to the departure of directors and officers and the recruitment of directors and key members of our senior management team. | |||||||||||||||
| (2) Represents fees and expenses related to a settlement in the cancellation of a contract related to our information technology systems. | |||||||||||||||
| (3) Severance expenses paid as part of our cost reduction plan implemented during the 13 weeks ended July 29, 2023. | |||||||||||||||
| (4) Represents costs related to legal settlements and related fees and expenses. | |||||||||||||||
| SPORTSMAN’S WAREHOUSE HOLDINGS, INC. GAAP and Non-GAAP Financial Measures (Unaudited) (amounts in thousands, except per share data) | |||||||||||||||
| The following table presents the reconciliation of GAAP net loss to adjusted EBITDA for the periods presented: | |||||||||||||||
| For the Thirteen Weeks Ended | For the Thirty-Nine Weeks Ended | ||||||||||||||
| November 2, 2024 | October 28, 2023 | November 2, 2024 | October 28, 2023 | ||||||||||||
| Net loss | $ | (364 | ) | $ | (1,331 | ) | $ | (24,336 | ) | $ | (20,258 | ) | |||
| Interest expense | 3,317 | 3,944 | 9,408 | 9,518 | |||||||||||
| Income tax benefit | 162 | 459 | (7,364 | ) | (6,664 | ) | |||||||||
| Depreciation and amortization | 9,984 | 10,663 | 30,536 | 28,412 | |||||||||||
| Stock-based compensation expense (1) | 1,047 | 965 | 3,438 | 3,341 | |||||||||||
| Director and officer transition costs (2) | 279 | 1,180 | 709 | 3,067 | |||||||||||
| Cancelled contract (3) | 205 | - | 911 | - | |||||||||||
| Cost reduction plan (4) | - | 351 | - | 1,216 | |||||||||||
| Legal settlement (5) | 1,750 | - | 1,750 | 687 | |||||||||||
| Adjusted EBITDA | $ | 16,380 | $ | 16,231 | $ | 15,052 | $ | 19,319 | |||||||
| (1) Stock-based compensation expense represents non-cash expenses related to equity instruments granted to employees under our equity incentive plan and employee stock purchase plan. | |||||||||||||||
| (2) Expenses incurred relating to the departure of directors and officers and the recruitment of directors and key members of our senior management team. | |||||||||||||||
| (3) Represents fees and expenses related to a settlement in the cancellation of a contract related to our information technology systems. | |||||||||||||||
| (4) Severance expenses paid as part of our cost reduction plan implemented during the 13 weeks ended July 29, 2023. | |||||||||||||||
| (5) Represents costs related to legal settlements and related fees and expenses. | |||||||||||||||
FAQ
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