koto_feja
Sportsman’s Warehouse Holdings (NASDAQ:SPWH) reported same-store sales decreased 17.8% in Q1. The net sales decrease was primarily due to lower sales demand from weather-related headwinds in the Western United States leading to decreased outdoor participation, consumer inflationary pressures and recession concerns, partially offset by the opening of 11 new stores since April 30, 2022
Gross profit came in at 29.9% of sales vs. 32.0% of sales a year ago. The decrease as a percentage of sales was primarily driven by changes in product mix and reduced product margins in our ammunition category.
Adjusted EBITDA was -$5.6M vs. $12.9M year ago.
Sportsman’s Warehouse (SPWH) ended the quarter with net debt of $147.3M, comprised of $3.0M of cash and cash equivalents and $150.3M of borrowings outstanding under the company’s revolving credit facility. Total liquidity was $153.5M as of the end of the quarter, comprised of $150.5M of availability on the revolving credit facility and $3.0M of cash. Inventory at the end of the quarter was $469.5M.
CEO update: “Sales from our typical spring fishing, camping and shooting seasons were significantly impacted in the quarter due to the persistent consumer inflationary pressures and the excessively wet and cold weather in the Western United States, where a large portion of our stores are located. These pressures on the business have continued into the second quarter.”
SPWSH said it is firing off a company-wide plan to reduce expenses, with increased focus on financial discipline and rigor throughout the organization. The retailer is still on track to open 15 new stores during FY23 and further penetrate its e-commerce business, which continues to achieve positive year-over-year results.
Looking ahead, SPWH sees Q2 EPS of $0.02 to $0.15 vs. $0.13 consensus.
Shares of SPWH fell 4.55% in postmarket trading to $5.24.
