SPORTSMAN’S WAREHOUSE Reports 41.1% Drop in Revenue for FY2023 Q3
December 26, 2022
Earnings report
On December 7, 2022, SPORTSMAN’S WAREHOUSE ($NASDAQ:SPWH) reported earnings results for FY2023 Q3 as of October 31, 2022. This publicly traded company provides high-quality outdoor equipment and apparel for sportsmen and sportswomen alike. Unfortunately, their third quarter financial results revealed a 41.1% year-over-year drop in total revenue, reaching USD 12.9 million.
In addition, reported net income was USD 359.7 million, a 10.3% decrease from the same quarter last year. In response to the drop in revenue, SPORTSMAN’S WAREHOUSE has implemented cost-cutting measures such as reducing their workforce and closing several stores. In addition, they have shifted their focus to selling more of their products online in order to increase sales and mitigate the impact of the pandemic. Despite the decrease in revenue, SPORTSMAN’S WAREHOUSE remains optimistic about their future. They have also stated that they will continue to invest in new technology to enhance their ecommerce capabilities and expand their customer base. Despite this, they remain focused on providing quality products and services to their customers while taking steps to improve their financial performance.
Market Price
On Wednesday, SPORTSMAN’S WAREHOUSE reported a 41.1% drop in revenue for FY2023 Q3. The company’s stock opened at $10.0 and closed at $10.3, up by 2.6% from previous closing price of 10.0. This report came in the midst of a challenging economic environment, amid the pandemic-induced global recession. The company has been working to reduce costs and strengthen its balance sheet by cutting jobs and selling off assets. It has also implemented a number of initiatives to improve operations, including optimizing inventory and improving customer service. Despite these efforts, the revenue for the quarter fell significantly due to the impact of the pandemic on consumer spending and travel.
This will put pressure on SPORTSMAN’S WAREHOUSE to continue to reduce costs and improve operational efficiency in order to remain competitive in the industry. Despite the challenging economic environment, the company remains optimistic about achieving its long-term goals. It is also committed to investing in technology and innovation to remain competitive and provide customers with the best possible shopping experience. The company is taking steps to reduce costs and improve operations in order to remain competitive in the industry. Although the short-term outlook is uncertain, the company remains focused on its long-term goals and is committed to investing in technology and innovation to provide customers with an excellent shopping experience. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Sportsman’s Warehouse. More…
| Total Revenues | Net Income | Net Margin |
| 1.44k | 87.92 | 3.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Sportsman’s Warehouse. More…
| Operations | Investing | Financing |
| 71.23 | -53.47 | -17.73 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Sportsman’s Warehouse. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 925.36 | 642.05 | 7.52 |
Key Ratios Snapshot
Some of the financial key ratios for Sportsman’s Warehouse are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 18.2% | 20.5% | 8.4% |
| FCF Margin | ROE | ROA |
| 1.2% | 26.7% | 8.1% |
VI Analysis
Sportsman’s Warehouse is classified as a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. Investors who are looking for steady, long-term returns could be interested in this company. Although the company has an intermediate health score of 6/10 with regard to its cashflows and debt, it is still able to safely ride out any crisis without the risk of bankruptcy. The company is strong in growth and profitability, and medium in asset. Sportsman’s Warehouse has a weak dividend yield, which means investors will not be able to benefit from dividend payments. However, this does not mean that the company is not a good investment option. The fundamentals of the company reflect its long term potential. The company has a solid foundation and has shown consistent growth despite the economic downturn. The fundamentals of the company make it a safe option for investors who are looking for reliable returns in the long run. More…
VI Peers
Headquartered in Midvale, Utah, the company operates over 90 stores across the United States. Sportsman’s Warehouse offers a wide range of sporting goods and outdoor products, including hunting, fishing, camping, and hiking gear, as well as apparel and footwear. The company’s competitors include Dick’s Sporting Goods Inc, Big 5 Sporting Goods Corp, and Hibbett Inc.
– Dick’s Sporting Goods Inc ($NYSE:DKS)
Dicks Sporting Goods is an American sporting goods retailer headquartered in Coraopolis, Pennsylvania. The company was founded in 1948 by Richard “Dick” Stack. As of 2019, it operates more than 850 stores in 47 states. The company offers a wide range of products, including apparel, footwear, and equipment for sports and fitness activities.
– Big 5 Sporting Goods Corp ($NASDAQ:BGFV)
Big 5 Sporting Goods Corp is a retailer of sporting goods and apparel in the United States. The company has a market cap of 280.08M as of 2022 and a Return on Equity of 19.14%. The company operates stores under the Big 5 Sporting Goods, Big 5 Sporting Goods Outlet, and Big 5 Trading Post banners. The company offers a wide variety of products, including athletic shoes, apparel, and accessories, as well as a variety of outdoor and recreational equipment.
– Hibbett Inc ($NASDAQ:HIBB)
Hibbett, Inc. is a publicly traded company with a market capitalization of 780.18 million as of 2022. The company operates in the retail sector and focuses on selling sporting goods and apparel. Hibbett has a return on equity of 27.86%.
Summary
Investing analysis of SPORTSMAN’S WAREHOUSE in the third quarter of FY2023, as of October 31, 2022, shows a decrease in both total revenue and net income year over year. Revenue was down 41.1% to USD 12.9 million while net income was 10.3% lower to USD 359.7 million. While the company’s performance was lower than the same period in the previous year, it is important to consider any underlying factors that may have contributed to the decrease in earnings. This could include changes in the company’s market share, competitive pressures, or even seasonal factors.
It is also important to consider the potential for future growth and the potential return on investment by investors. By conducting a thorough analysis of the company’s current financial position, investors can make a more informed decision about whether to invest in SPORTSMAN’S WAREHOUSE.
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