B. Riley Securities analyst raises estimates for Sportsman’s Warehouse

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SPORTSMAN’S($NASDAQ:SPWH): B. Riley Securities analyst Eric Wold has advised clients that the company’s inaugural investor day offered good reason to raise estimates on Sportsman’s Warehouse Holdings. Wold believes that the backdrop of continued elevated outdoor activity participation trends following the initial pandemic-driven boost presents an opportunity for the company to gain incremental market share and customer loyalty. In addition to management’s plans to accelerate store growth in the coming years with the flexible store format, the departure of other competing retailers from the firearms and ammo segments provides an attractive set-up for repeat purchase activity and store visits.

Stock Price

The stock opened at $8.6 and closed at $8.8, up by 3.8% from its last closing price of $8.4. The analyst believes that the company’s strong performance in recent quarters is likely to continue, and has therefore raised its estimates for the company’s future earnings. Sportsman’s Warehouse is a leading retailer of sporting goods and outdoor equipment, and is particularly well-known for its hunting and fishing products. The company has seen strong growth in recent years, and is expected to continue to perform well in the future.

VI Analysis

Companies’ fundamentals reflect their long-term potential. The VI app makes it easy to see the key indicators for companies like SPORTSMAN’S WAREHOUSE. The VI Star Chart shows that SPORTSMAN’S WAREHOUSE has an intermediate health score of 6/10, considering its cash flows and debt. This suggests that the company might be able to safely ride out any crisis without the risk of bankruptcy. SPORTSMAN’S WAREHOUSE is classified as a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. Due to its moderate growth rate, such companies are deemed less risky and volatile as they pursue a sustainable growth rate. In summary, SPORTSMAN’S WAREHOUSE is strong in growth and profitability, and medium in asset quality.

However, the company is weak in dividend yield.

Summary

Sportsman’s Warehouse is a retailer of outdoor recreation products, including hunting, fishing, and camping gear, and apparel. The company operates through two segments: Retail and E-commerce. The Retail segment comprises stores located across the United States. The E-commerce segment includes the company’s website and catalog operations.

The analyst expects Sportsman’s Warehouse to report strong results for the second quarter, driven by robust sales growth across all channels. The company’s e-commerce business is particularly strong, with sales up double digits in the quarter. The stock price moved up the same day.