Education
About Us
Working with TipRanks
Follow Us
Sportsman's Warehouse (SPWH)
NASDAQ:SPWH
Top Page
Sportsman's Warehouse
(NASDAQ:SPWH)
61Neutral
Positive Factors
Operational Strategy
The new CEO's strategic refinement has catalyzed improvements, as evidenced by the absence of a liquidation cycle and expanded gross margins.
Sales Performance
The Hunt category drives sales upside in the quarter, outperforming estimates and showing potential for long-term demand.
Negative Factors
Sales and Store Traffic
Sales remain under pressure, with a decline in store traffic translating into lower demand across most categories.
Sportsman's Warehouse (SPWH) vs. S&P 500 (SPY)
Market Cap
$38.34M
Dividend YieldN/A
Average Volume (3M)717.32K
Price to Earnings (P/E)―
Beta (1Y)0.38
Revenue Growth-5.34%
EPS Growth-257.70%
CountryUS
Employees2,100
SectorConsumer Cyclical
Sector Strength52
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-0.88
Shares Outstanding37,957,283
10 Day Avg. Volume641,678
30 Day Avg. Volume717,320
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.03
Price to Cash Flow (P/CF)-3.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.50Price Target Upside264.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Sportsman's Warehouse Business Overview & Revenue Model
Company DescriptionSportsman's Warehouse Holdings, Inc., together with its subsidiaries, operates as an outdoor sporting goods retailer in the United States. It offers camping products, such as backpacks, camp essentials, canoes and kayaks, coolers, outdoor cooking equipment, sleeping bags, tents, and tools; and apparel products, including camouflage, jackets, hats, outerwear, sportswear, technical gear, and work wear. The company also provides fishing products comprising bait, electronics, fishing rods, flotation items, fly fishing products, lines, lures, reels, tackles, and small boats; and foot wear products consisting of hiking and work boots, socks, sport sandals, technical footwear, trial and casual shoes, and waders. In addition, it offers hunting and shooting products, such as ammunition, archery items, ATV accessories, blinds and tree stands, decoys, firearms, firearms safety and storage products, reloading equipment, and shooting gear products; and optics, electronics, and accessories, including gift items, GPS devices, knives, lighting, optics, and two-way radios. Further, the company's stores provide archery technician services, fishing-reel line winding, bore sighting and scope mounting, and cleaning services, as well as issues hunting and fishing licenses. Additionally, it offers various private label and special make-up offerings under the Rustic Ridge, Killik, Vital Impact, Yukon Gold, Lost Creek, and Sportsman's Warehouse brands. As of May 26, 2022, the company operated through 126 stores. Sportsman's Warehouse Holdings, Inc. was founded in 1986 and is headquartered in West Jordan, Utah.
How the Company Makes MoneySportsman's Warehouse generates revenue primarily through the sale of outdoor sporting goods and equipment. Its key revenue streams include retail sales from its physical store locations and online sales through its e-commerce platform. The company offers a wide variety of products across multiple categories such as hunting, shooting, fishing, camping, and footwear, appealing to a diverse customer base of outdoor enthusiasts. Additionally, the company benefits from vendor partnerships and exclusive product offerings which enhance its competitive edge. Sales are driven by seasonal demand, promotional events, and the company's ability to maintain a diverse inventory that meets the needs of its customer base.
Sportsman's Warehouse Financial Statement Overview
Summary
Sportsman's Warehouse demonstrates mixed financial performance. The company faces declining revenue and profitability challenges, yet maintains positive operating and free cash flows, indicating improved cash management. A high leverage balance sheet poses potential risks, but the financial health is moderate overall.Income Statement
The company has been experiencing a declining revenue trend from 2021 to TTM 2024, with a notable drop in net income leading to negative net profit margins in recent periods. The gross profit margin has also decreased, reflecting challenges in maintaining profitability. However, EBITDA margins show some resilience. These mixed signals suggest moderate financial health but highlight profitability challenges.55
Neutral
Balance Sheet
The balance sheet shows a stable equity ratio, though it has decreased slightly over time. The debt-to-equity ratio remains high, indicating significant leverage, which poses potential financial risks. However, the company maintains a reasonable level of stockholders' equity relative to its assets, providing some stability despite increased liabilities.60
Neutral
Cash Flow
Cash flow from operations remains positive, and the free cash flow has improved in TTM 2024 compared to previous periods, indicating better cash management. However, the high operating cash flow to net income ratio highlights a discrepancy in converting revenue to cash, suggesting potential earnings quality issues.65
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.23B | 1.29B | 1.40B | 1.51B | 1.45B | 886.40M | Gross Profit |
| 345.27M | 383.41M | 460.24M | 490.30M | 476.45M | 296.63M | EBIT |
| -26.53M | -25.34M | 58.06M | 90.62M | 122.75M | 33.46M | EBITDA |
| 10.91M | 13.67M | 89.84M | 203.38M | 172.10M | 33.46M | Net Income Common Stockholders |
| -33.08M | -29.00M | 40.52M | 108.47M | 91.38M | 20.21M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 405.00K | 3.14M | 2.39M | 57.02M | 65.53M | 1.69M | Total Assets |
| 264.99M | 886.21M | 858.96M | 840.58M | 660.82M | 616.64M | Total Debt |
| 288.91M | 481.74M | 393.45M | 343.20M | 264.31M | 397.54M | Net Debt |
| 288.50M | 478.60M | 391.06M | 286.19M | 198.78M | 395.85M | Total Liabilities |
| 393.56M | 621.65M | 565.85M | 526.41M | 456.16M | 506.37M | Stockholders Equity |
| -128.57M | 264.56M | 293.11M | 314.17M | 204.66M | 110.27M |
| Cash Flow | Free Cash Flow | ||||
| 30.20M | -27.63M | -16.72M | -75.08M | 219.06M | 47.49M | Operating Cash Flow |
| 50.23M | 52.27M | 46.79M | -21.63M | 238.82M | 77.87M | Investing Cash Flow |
| -19.98M | -79.89M | -60.59M | -53.45M | -26.23M | -49.06M | Financing Cash Flow |
| -30.51M | 28.38M | -40.84M | 66.57M | -148.75M | -28.66M |
Sportsman's Warehouse Technical Analysis
Negative
0.96
Price Trends
1.53
Negative
1.94
Negative
2.21
Negative
Market Momentum
-0.15
Negative
32.78
Neutral
31.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPWH, the sentiment is Negative. The current price of 0.96 is below the 20-day moving average (MA) of 1.09, below the 50-day MA of 1.53, and below the 200-day MA of 2.21, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 32.78 is Neutral, neither overbought nor oversold. The STOCH value of 31.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SPWH.
Sportsman's Warehouse Risk Analysis
Sportsman's Warehouse disclosed 30 risk factors in its most recent earnings report. Sportsman's Warehouse reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sportsman's Warehouse Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $16.13B | 14.37 | 40.08% | 2.18% | 3.53% | 13.86% | |
75 Outperform | $2.74B | 16.39 | 24.01% | ― | 10.32% | 6.05% | |
69 Neutral | $3.09B | 8.04 | 21.14% | 0.95% | -3.67% | -14.66% | |
66 Neutral | $6.17B | 29.79 | 10.49% | 3.27% | 2.96% | -15.58% | |
61 Neutral | $38.34M | ― | -12.82% | ― | -5.34% | -257.70% | |
59 Neutral | $12.17B | 11.04 | -1.10% | 3.77% | 1.26% | -19.70% | |
49 Neutral | $143.86M | 33.59 | -33.68% | 2.67% | -7.66% | -413.50% |
* Consumer Cyclical Sector Average
Performance Comparison
SPWH
Sportsman's Warehouse
0.96
-1.91
-66.55%
CLAR
Clarus
3.76
-2.63
-41.16%
DKS
Dick's Sporting Goods
206.41
-6.10
-2.87%
YETI
Yeti Holdings
33.69
-4.44
-11.64%
LEVI
Levi Strauss & Co
16.38
-1.85
-10.15%
ASO
Academy Sports and Outdoors
46.60
-16.15
-25.74%
Sportsman's Warehouse Earnings Call Summary
Earnings Call Date: Apr 1, 2025 | % Change Since: 0.00% | Next Earnings Date: Jun 3, 2025
Earnings Call Sentiment Negative
The earnings call highlighted significant challenges, including declines in net sales, same-store sales, and gross margins, as well as a net loss for the quarter. Despite these challenges, there were positive strides in e-commerce growth and inventory management, with a focus on future strategic improvements. However, the lowlights outweighed the highlights, indicating a challenging period for the company.Highlights
E-commerce Growth
E-commerce outpaced the performance of the overall business in the third quarter, continuing to comp positive and driving additional sales.
Inventory and Debt Reduction
Total inventory was reduced, and debt was paid down by approximately $20 million versus the last quarter, improving overall liquidity.
Successful Promotions in Inventory Management
Significant progress was made in reducing apparel and footwear inventory through strategic promotions and markdowns.
Lowlights
Decline in Net Sales
Net sales for Q3 2023 were $340.6 million, a decline of 5.3% compared to the same quarter in 2022.
Decrease in Same-Store Sales
Same-store sales decreased by 11.4% compared to Q3 2022, with the hunting department down 10.6%.
Net Loss for the Quarter
Reported a net loss of $1.3 million or negative $0.04 per diluted share, compared to a net income of $12.9 million in the prior year.
Gross Margin Decline
Gross margin fell to 30.3% from 33.6% in the prior year, primarily due to aggressive promotional activities and normalized ammunition margins.
No New Store Openings in 2024
Decision was made not to open any new stores during fiscal 2024 due to current macroeconomic conditions.
Company Guidance
During the Sportsman's Warehouse third-quarter earnings call for 2023, several key metrics and strategic initiatives were discussed. Net sales for the quarter totaled $340.6 million, reflecting a 5.3% decline from the previous year. Same-store sales showed a decrease of 11.4%, with the hunting department seeing a 10.6% drop. The company reported a net loss of $1.3 million, or negative $0.04 per diluted share, compared to a net income of $12.9 million in the prior year. Adjusted EBITDA was $16.2 million, representing 4.8% of net sales. Inventory levels were reduced to $446.3 million, down from $485.2 million at the end of Q3 2022. For the fourth quarter, the company anticipates net sales between $365 million and $390 million, with same-store sales expected to decline by 6% to 11%. Aggressive promotional activities are predicted to lower gross margins by 600 to 800 basis points compared to the prior year. The company aims to end the year with inventory below $375 million and plans to focus on cost reduction, omnichannel growth, and capital allocation, with no new store openings planned for 2024 to prioritize debt reduction and operational efficiency.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.