Sportsman’s Warehouse exceeds guidance despite sales drop
Sportsman’s Warehouse has delivered what it describes as ‘another strong quarter of operating results’ that exceed the high end of guidance.
Net sales dropped 3% to $351 million in Q2 due mainly, says the company, to lower demand across most product categories as a result of inflation and concerns about recession.
The US-based fishing tackle supplier’s decrease was partially offset by the opening of 12 new stores since July last year. Compared to the second quarter of 2019, net sales increased 65.7%. Same store sales fell 9.4% compared to last year but were up 31.7% against 2019.
Gross profit was $117.5 million (33.5% of net sales), nearly $3 million down on the previous year. Net income was $14.6 million, compared to $17.7 million the prior year.
Net sales for the half year were $660.5 million, a 4.1% drop compared to 2021, with the decrease being driven by lower demand across most product ranges. Same store sales fell 10.4%, while gross profit of $216.6 million was down $7.5 million. Net income fell almost $11 million to $16.6 million.
“We delivered another strong quarter of operating results despite the challenging economic environment, exceeding the high end of guidance,” said Jon Barker, Sportsman’s Warehouse President and CEO. “We are confident in our competitive position within the outdoor sporting goods space, and believe we have the right team, strategies and capabilities to successfully navigate through these challenging macroeconomic conditions.”
For the third quarter, net sales are expected to be in the range of $345m to $365m, says the company, which anticipates that same store sales will be down 17% to 12% year-on-year.