Inflation and recession concerns hit Sportsman’s Warehouse sales

Utah-based Sportsman’s Warehouse has reported net sales of $379.3m for the fourth quarter of 2022, an 8.9% decrease compared to the same quarter in 2021, but up by 46.9% on 2019.

Lower sales due to inflationary pressures and recessionary concerns were the key factors behind the decline, which was partially offset by the opening of nine new stores.

Same store sales dropped 12.5% compared to the same period the previous year, but increased 24.9% versus 2019.

Net income was $11.0m for the quarter, well down on the $58.4m reported the previous year.

Full year net sales showed a similar pattern, coming in 7.1% down year-on-year at $1,399.5m. Same store sales dropped 12.2% due to lower sales in all categories. Net income fell from $108.5m in 2021 to $40.5m.

The company ended the year with 131 stores in operation, and expects to open 15 new stores in 2023, a record for a single year.

Jeff White (above), Chief Financial Officer of Sportsman’s Warehouse, said: “While we believe outdoor participation remains strong, the macro-economic environment and inflationary pressures are weighing on consumers and their discretionary spending. Additionally, the unusually wet and cold weather in the western U.S., where a large portion of our stores are located, is creating a later than normal start to the spring fishing, shooting and camping seasons, negatively impacting our current business.

“Although we expect the first half of fiscal 2023 to be pressured, we anticipate improvements during the back half of the year.”

Sportsman’s Warehouse also announced the retirement of CEO Jon Barker (above), effective today (April 14). Board Chairman Joseph Schneider has been named interim CEO until a successor is found.