Sportsman’s Warehouse Holdings, Inc., which has agreed to a merger with Bass Pro, reported fourth-quarter earnings soared three-fold as sales ran up 69.7 percent.

“Sportsman’s Warehouse finished fiscal 2020 with record performance for the fourth quarter and full year. I am proud of our associates who made tremendous efforts to safely serve our customers,” said Jon Barker, Sportsman’s Warehouse CEO. “Fourth quarter same-store sales increased 58 percent compared to the same period last year due to an exceptionally strong holiday season, elevated participation in outdoor activities and our continued market share gains in firearms. For the fiscal year 2020, we grew same-store sales by 48 percent compared to the prior year as we capitalized on historic surges in first-time firearm ownership and outdoor activity participation.”

Barker continued, “We continue to expand digitally and through additional brick & mortar stores. In 2020, we opened nine new Sportsman’s Warehouse stores and one Legacy Shooting Center, taking our total store count to 112.”

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 its 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 hold an earnings conference call and will not provide forward-looking guidance.

For The 13 Weeks Ended January 30, 2021

  • Net sales were $438.2 million, an increase of $180.0 million, or 69.7 percent, compared to the fourth quarter of fiscal year 2019. The net sales increase was primarily due to an exceptional surge in demand across all major categories, led by our hunting and shooting category and strong growth in its e-commerce platform compared to the prior-year period;
  • Same-store sales increased 57.7 percent during the fourth quarter of 2020 compared to the fourth quarter of 2019′
  • Gross profit was $142.0 million or 32.4 percent of net sales, compared to $85.0 million or 32.9 percent of net sales in the comparable prior-year period, a year-over-year increase of $57.0 million in gross profit and a 50-basis point decrease in gross profit margin;
  • Net income was $29.6 million compared to net income of $9.7 million in the fourth quarter of 2019. Adjusted net income was $33.5 million compared to adjusted net income of $9.3 million in the fourth quarter of 2019;
  • Adjusted EBITDA was $51.5 million compared to $19.6 million in the comparable prior-year period; and
  • Diluted earnings per share were 66 cents compared to diluted earnings per share of 22 cents in the comparable prior-year period. Adjusted diluted earnings per share were 75 cents compared to adjusted diluted earnings per share of 21 cents for the comparable prior-year period.

For The 52 Weeks Ended January 30, 2021

  • Net sales were $1,451.8 million, an increase of $565.4 million, or 63.8 percent, compared to fiscal year 2019. The net sales increase was primarily due to a surge in demand across all major categories, led by its hunting and shooting category and strong growth in its e-commerce platform compared to the prior year;
  • Same-store sales increased 48.3 percent during fiscal year 2020 compared to fiscal year 2019;
  • Gross profit was $476.4 million or 32.8 percent of net sales, as compared to $296.6 million or 33.5 percent of net sales for the comparable prior year, a year-over-year increase of $179.8 million in gross profit and a 70-basis point decrease in gross profit margin;
  • Net income was $91.4 million compared to net income of $20.2 million in fiscal year 2019. Adjusted net income was $99.1 million compared to adjusted net income of $20.6 million in fiscal year 2019;
  • Adjusted EBITDA was $163.2 million compared to $59.0 million in fiscal year 2019; and
  • Diluted earnings per share were $2.06 for fiscal year 2020 compared to diluted earnings per share of $0.46 last year. Adjusted diluted earnings per share were $2.23 for fiscal year 2020 compared to adjusted diluted earnings per share of $0.47 last year.

Balance Sheet Highlights As Of January 30, 2021
The company was in a net cash position at the end of fiscal year 2020 with $65.5 million in cash-on-hand and no borrowings outstanding under the company’s revolving credit facility. It also repaid in full its term loan during fiscal year 2020. Total liquidity was $220 million as of the end of fiscal 2020, comprised of $155 million of availability on the revolving credit facility and $65 million of cash on hand.

Photo courtesy Sportsmans Warehouse/Lena Miculek