Sportsman’s Warehouse Holdings, Inc. (NASDAQ: SPWH) reported better than expected second quarter earnings that boosted shares by over 30 percent.
The company reported revenue of $191.5 million, an increase of 0.9 percent year over year from $189.9 million, but same sale stores decreased by 8 percent. Sportsman’s posted an EPS loss of $0.15 per share, but beat analysts estimates of $0.13 per share. Last year’s same quarter, the company posted an EPS of $0.20. The company posted a net income of $6.6 million, compared to $8.3 million from last year’s same quarter.
The Company opened four new stores in the second quarter and ended the quarter with 83 stores in 22 states, a growth of 12.2% from last year’s same quarter.
John Schaefer, Chief Executive Officer, stated, "Our second quarter topline results were in line with our expectations given the anticipated continued softness in firearm demand as we anniversaried difficult comparisons from the Orlando tragedy in June 2016. Our better than expected bottom line results were driven by stronger gross margins resulting primarily from the higher margin product mix shift that we experienced in the second quarter. We remained focused on continuing to capture market share during the quarter and are encouraged by the progress we made against our strategic priorities of expanding our private label segment, maximizing our loyalty program, investing in our best-in-class customer service and enhancing our e-commerce platform."
Schaefer added, "For the remainder of the year, we continue to expect softness in firearm demand until we anniversary the pre-election run up that drove increased demand in our firearm and ammunition categories last year. Despite the still challenging operating environment, we will continue to execute our key growth priorities that will be centered around driving same store sales, elevating our omni-channel experience and paying down debt as we focus on delivering long-term sustainable growth."
For the third quarter of the fiscal year, Sportsman expects net sales to be in the range of $220 million to $225 million including the same store decline in the range of 6 percent to 8 percent. The company expects diluted EPS of $0.23 to $0.26 per share.
For the rest of the fiscal year, the company expects net sales to be in the range of $825 million to $835 million, including the same store sales decline of 5 percent to 6 percent. Adjusted net income is expected to be $25.7 million to $28.4 million, and adjusted EPS of $0.60 to $0.66.
Shares closed on Thursday $3.46 and opened on Friday $4.10, but reaching a high on Friday of $4.83 a share. Shares are now up over 33 percent since Sportsman’s Warehouse posted its results.