By WEST JORDAN, Utah – Sportsman’s Warehouse (NASDAQ:SPWH) Holdings Inc. (NASDAQ:SPWH) shares dropped 2.39% in after-hours trading Tuesday after the outdoor sporting goods retailer reported a wider-than-expected second-quarter loss and cut its full-year guidance.
The company posted a loss of $0.16 per share for the quarter ended August 3, significantly wider than the $0.09 loss analysts had forecast. Revenue came in at $288.7 million, slightly above the consensus estimate of $285.5 million but down 6.7% YoY.
Same-store sales declined 9.8% compared to the same quarter last year, which the company attributed to lower demand across most product categories and decreased store traffic due to ongoing consumer inflationary pressures on discretionary spending.
“We continued to make substantial progress on our initiatives to reset the business and improve our overall operations; however, we were disappointed that sales and margins came in below our expectations,” said CEO Paul Stone.
Citing a challenging consumer environment, Sportsman’s Warehouse lowered its fiscal 2024 outlook. The company now expects full-year revenue between $1.13 billion and $1.17 billion, down from its previous guidance and below analysts’ expectations of $1.18 billion. Adjusted EBITDA is forecast at $20 million to $35 million.
Despite the headwinds, Stone expressed confidence in the company’s strategic initiatives, stating, “We still have a lot of work ahead of us, but we remain confident that our strategic initiatives have us on the right path to turnaround this business.”
The company ended the quarter with net debt of $152.5 million and total liquidity of $99.9 million. Sportsman’s Warehouse expects to generate positive free cash flow for the full year, which it plans to use to pay down debt.
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