Why Sportsman's Warehouse Stock Is Hitting 52-Week Lows After Hours

Sportsman's Warehouse Holdings Inc SPWH shares are trading lower in Wednesday's after-hours session after the company reported mixed financial results and issued guidance well below analyst estimates due to lower discretionary spending and a prolonged cold season. 

• Q4 Revenue: $379.27 million missed estimates of $380.01 million
• Q4 EPS: 33 cents beat estimates of 29 cents

Same-store sales were down 12.5% in the quarter. Gross profit came in at 32.4%, down from 32.8% year-over-year. 

Sportsman's ended the quarter with a total liquidity position of $161.5 million.

"While we believe outdoor participation remains strong, the macroeconomic environment and inflationary pressures are weighing on the consumer and their discretionary spending," said Jeff White, CFO of Sportsman's Warehouse.

"Additionally, the unusually wet and cold weather in the western U.S., where a large portion of our stores are located, is creating a later than normal start to the spring shooting, fishing, and camping seasons, negatively impacting our current business."

Sportsman's also announced that CEO Jon Barker would retire from his roles at the company, effective April 14.

Outlook: Sportsman's said it expects first-quarter revenue to be in the range of $265 million and $270 million versus estimates of $316.71 million. The company anticipates a first-quarter loss of 40 to 45 cents per share versus estimates for positive earnings of 3 cents per share.

SPWH Price Action: Sportsman's has a 52-week high of $11.37. The stock is making new 52-week lows after hours.

Sportsman's shares were down 9.75% after hours at $7.50 at the time of publication. 

Photo: PIRO from Pixabay.