Sportsman's Warehouse Stock Is Sliding: What's Going On?

Sportsman's Warehouse Holdings Inc SPWH shares are trading lower Thursday after the company reported mixed financial results and issued guidance well below analyst estimates due to lower discretionary spending and a prolonged cold season. The company's CEO also announced that he will retire. 

What Happened: Sportsman's reported fourth-quarter revenue of $379.27 million, which missed estimates of $380.01 million, according to Benzinga Pro. The company reported quarterly earnings of 33 cents per share, which beat estimates of 29 cents per share.

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.

Sportsman's announced that CEO Jon Barker would retire from his role at the helm as well as a member of the board, effective April 14.

"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 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.

Following the print, Baird analyst Justin Kleber maintained Sportsman's with a Neutral and lowered the price target from $10 to $8. B. Riley Securities analyst Eric Wold maintained Sportsman's with a Buy and lowered the price target from $16 to $12.

See Also: US Stocks Could Flatline As Rate-Hike Doubts Linger: Analyst Sees Market Strength In April Back-Half

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

Sportsman's shares were down 13.4% at $7.20 at the time of publication, according to Benzinga Pro.

Photo: Pexels from Pixabay.