Sportsman's Warehouse Holdings Inc. reported net sales increased by 9.4 percent to $199.7 million in the quarter ended Oct. 31 as unseasonably warm weather cut into  footwear and apparel sales, offsetting growth from new stores and continued improvement in non-hunting and shooting product categories.

The company opened three new stores in the third quarter of fiscal 2015 and ended the quarter with 64 stores in 19 states, a unit increase of 16.4 percent from the end of the third quarter of fiscal 2014.

“We are pleased with our third quarter results which came in within our guidance on both the top and bottom line,” said  President and CEO John Schaefer. “Despite the positive trends that we see in the hunting, fishing and camping categories, we are taking a more conservative view for the fourth quarter due to the weather impact on clothing and footwear.”

He added that the company remains focused on store expansion, growth of its loyalty program, enhancement of operating margins and maintaining best in class customer service.

Income from operations increased to $19.2 million from $18.6 million in the third quarter of fiscal 2014. Adjusted income from operations, which excludes expenses related to a secondary offering in the third quarter of fiscal 2015, was $19.9 million as compared to $18.6 million in the corresponding period of fiscal 2014.
  
Net income reached $9.5 million compared to $8.9 million in the third quarter of fiscal 2014. Adjusted net income was $10.0 million compared to adjusted net income of $8.9 million in the corresponding period of fiscal 2014.
 
Diluted earnings per share were $0.23 compared to $0.21 in the third quarter of fiscal 2014, or $0.24 and $0.21 on an adjusted basis.

The company ended the period with total liquidity (cash plus $63.7 million of availability on a $135.0 million revolving credit facility) of $65.6 million. Interest expense decreased to $3.7 million from $4.1 million in the third quarter of fiscal 2014.

Fourth Quarter and Fiscal 2015 Outlook:

For the fourth quarter of fiscal 2015, net sales are expected to be in the range of $203.0 million to $208.0 million based on approximately flat same store sales. Net income is expected to be in the range of $10.3 million to $11.1 million, with diluted earnings per share of $0.24 to $0.26 on a weighted average of approximately 42.3 million estimated common shares outstanding.

For fiscal 2015, net sales are expected to be in the range of $720.0 million to $725.0 million based on opening nine new stores for the full year and approximately flat same store sales. Net income is expected to be in the range of $26.7 million to $27.5 million, with diluted earnings per share of $0.58 to $0.60 on a weighted average of approximately 42.3 million estimated common shares outstanding.
.