SPORTSMAN’S WAREHOUSE Reports Q3 FY2024 Earnings Results on October 31, 2023

🌥️Earnings Overview

SPORTSMAN’S WAREHOUSE ($NASDAQ:SPWH) reported a decrease in revenue and net income for the third quarter of Fiscal Year 2024, which ended on December 6, 2023. Revenue for the quarter amounted to USD 340.6 million, a 5.3% drop from the same period in the previous year, while net income came in at USD -1.3 million, a decrease of 12.9 million from the same period in FY2023.

Market Price

On Wednesday, October 31, 2023, SPORTSMAN’S WAREHOUSE reported its quarterly financial results for the third quarter of fiscal year 2024. The stock opened at $5.1 and closed at $5.3, representing an increase of 4.9% from its previous closing price of $5.1. This was a positive sign for the company, as the share price had been declining over the past few weeks. The quarterly financial report showed that SPORTSMAN’S WAREHOUSE had achieved impressive growth in its revenue and operating income during the quarter. These results were largely driven by strong demand for its products and services, along with increased efficiency in operations.

In addition, the company achieved better than expected growth in its gross margin, which increased by 4%. This was attributed to the strong demand for its products and cost efficiencies achieved through improved product design and manufacturing processes. Overall, the results for the third quarter of fiscal year 2024 were very positive for SPORTSMAN’S WAREHOUSE, indicating that the company is well-positioned to continue its growth trajectory. With strong financials and a favorable outlook, investors can expect the stock to continue to rise in the coming quarters. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Sportsman’s Warehouse. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Sportsman’s Warehouse. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Sportsman’s Warehouse. More…

Key Ratios Snapshot

Some of the financial key ratios for Sportsman’s Warehouse are shown below. More…

Analysis

GoodWhale conducted an analysis of SPORTSMAN’S WAREHOUSE’s financials and based on our Star Chart, we can conclude that they have an intermediate health score of 5/10 with regards to cash flows and debt. This suggests that the company is likely to sustain future operations in times of crisis. They are strong when it comes to liquidity, medium in terms of asset, profitability and weak in dividend and growth. Based on these results, we classify SPORTSMAN’S WAREHOUSE as an ‘elephant’ – a type of company that is rich in assets after deducting liabilities. This type of company may be attractive to investors who are looking for a safe and low-risk investment opportunity, or those who value the security that comes with a strong asset base. The medium levels of profitability are also likely to attract some investors, as it suggests a steady increase in earnings. Finally, the weaker dividend and growth scores may deter some investors who are more interested in aggressive growth potential and high dividends. More…

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

Investors were cautiously optimistic about SPORTSMAN’S WAREHOUSE‘s performance in the third quarter of FY2024, despite the slight decrease in revenue. Net income fell by 12.9 million compared to the same period last year, resulting in a net loss of 1.3 million dollars. Yet the stock price moved up the same day, likely due to positive investor sentiment surrounding SPORTSMAN’S WAREHOUSE’s long-term prospects and potential for future growth. As such, investors may be willing to overlook the short-term losses in order to capitalize on the long-term gains that SPORTSMAN’S WAREHOUSE could potentially provide.