Sportsman’s Warehouse Holdings Inc., which has reached an agreement to merge with Sportsman’s Warehouse, reported same-store sales in the first quarter ended May 1 jumped 24 percent with significant year-over-year profit gains.

“Sportsman’s Warehouse is off to a strong start this fiscal year,” said Jon Barker, Sportsman’s Warehouse CEO. “First quarter same-store sales increased 24 percent compared to the same period last year as we continue to capitalize on elevated participation in outdoor activities.”

Barker continued, “I would like to thank the Sportsman’s Warehouse team for an extraordinary first quarter and their dedication to serving customers and executing on our mission of providing outstanding gear and exceptional service to inspire outdoor memories.”

Pending Merger with Great Outdoors Group, LLC
As previously announced on December 21, 2020, Great Outdoors Group, LLC has agreed to acquire Sportsman’s Warehouse Holdings, Inc. for $18.00 per share in an all-cash transaction. The transaction has been approved by the Board of Directors of Sportsman’s Warehouse and the stockholders of Sportsman’s Warehouse approved the merger at the special stockholders meeting held on March 23, 2021. Completion of the merger is subject to the satisfaction of several conditions, including the expiration or termination of any applicable waiting period (and any extensions thereof) relating to the merger under the Hart-Scott-Rodino Act. Assuming receipt of required clearance pursuant to the Hart-Scott-Rodino Act and timely satisfaction of other conditions to closing, it currently expects the closing of the merger to occur in the second half of the calendar year 2021.

Due to the pending acquisition by Great Outdoors Group, LLC, Sportsman’s Warehouse management will not host an earnings conference call and will not provide forward-looking guidance.

For The Thirteen Weeks Ended May 1, 2021

  • Net sales were $327.0 million, an increase of $80.2 million, or 32.5 percent, compared to the first quarter of fiscal year 2020. The net sales increase was primarily due to higher demand across all major categories led by its hunting and shooting category and strong growth in its eCommerce platform compared to the prior-year period;
  • Same-store sales increased 24.1 percent during the first quarter of 2021 compared to the first quarter of 2020;
  • Gross profit was $104.0 million or 31.8 percent of net sales, compared to $74.8 million or 30.3 percent of net sales in the comparable prior-year period, a year-over-year increase of $29.3 million in gross profit and a 150-basis point increase in gross profit margin;
  • Net income was $10.5 million compared to a net loss of $1.1 million in the first quarter of 2020. Adjusted net income was $12.5 million compared to adjusted net income of $0.5 million in the first quarter of 2020;
  • Adjusted EBITDA was $23.5 million compared to $8.2 million in the comparable prior-year period;
  • Diluted earnings per share were $0.23 compared to a diluted loss per share of $0.03 in the comparable prior-year period; and
  • Adjusted diluted earnings per share were $0.28 compared to adjusted diluted earnings per share of $0.01 for the comparable prior-year period.

Balance Sheet Highlights As Of May 1, 2021

  • The company was in a net cash position at the end of the first quarter of the fiscal year 2021 with $60.0 million in cash on hand and no borrowings outstanding under the company’s revolving credit facility; and
  • Total liquidity was $250 million as of the end of the first quarter of fiscal 2021, comprised of $190 million of availability on the revolving credit facility and $60 million of cash on hand.

Photo courtesy Sportsman’s Warehouse