Sportsman's Warehouse Holdings Inc. reported fourth quarter profits improved before special charges. Same-store sales declined due to challenges in the guns and ammunition category but marked a smaller drop than recent quarters.

Net earnings in the quarter slumped 57.2 percent, to $3.2 million, or 8 cents a share. Adjusted to exclude an accrual with respect to a litigation matter and expenses related to refinancing its term loan in the latest quarter, earnings rose 23.0 percent to $9.1 million, or 22 cents a share. Results arrived at the high-end of its forecasted range of 19 to 22 cents a share.

Revenues advanced 4.3 percent to $182.5 million. Same store sales decreased 5.3 percent, improving from the decline of 6.2 percent in the third quarter and an 8.4 percent decline for the full year.

Excluding sales of firearms and ammunition same stores sales decreased 3.4 percent. Excluding firearms, ammunition and all shooting related categories including optics, same stores sales decreased 1.4 percent was due to the impact of the warm weather primarily upon its soft goods sales.

On a conference call with analysts, John Schaefer, president and CEO, noted that same store sales excluding the effect of competition in the 10 stores impacted in the fourth quarter declined 2.8 percent, implying competition had a 250 basis point impact on its same store sales in Q4 which is less than the prior two quarters.

Also helping the performance was the finalization of its store-within-a-store program in the apparel area, significant strides made in private label initiatives and the continued development of its customer loyalty program.

Schaefer said the chain continued to see a reduction in average selling price on both firearms and ammunition, down 2.7 percent during the quarter on unit increases of 8.0 percent. But he said with the improving firearm unit sales, its store growth and the growth in its non-hunting and fishing categories, Sportsman’s Warehouse is gaining market share.

Regarding the weather impact, he said the chain again saw temperatures significantly above the norm in all of its Western Alaskan stores, leading to a substantial decrease in non-camouflage active and outerwear in the quarter. He added, “Unfortunately this trend has continued into the first quarter of fiscal 2015. Despite the headwind of warm weather on our outerwear and base layer clothing categories we continue to gain traction in our camouflage category which we are currently more heavily focused on with our clothing initiatives.”

While traffic on a same store basis remained negative, conversion improved year over year once again and the average order size remained the same. Said Schaefer, “We believe that the steady increase in conversion the stable average ticket price despite average selling price decreases in both fire arms and ammunition and the continuing sequential improvement in traffic are illustrative of the strengthening loyalty we are building with the long term multi visit customer we are focused on tracking.”

The bottom line in the quarter was helped by an improvement in gross margin to 33.2 percent of sales from 32.4 percent as well as the top-line gain. SG&A expenses increased to 25.6 percent of sales from 23.0 percent.

Net earnings in the full year declined 33.7 percent to $13.8 million, or 34 cents a share. Adjusted earnings for 2014 were down 21.3 percent to $21.1 million, or 50 cents.

For the first quarter of 2015, sales are expected to be in the range of $140.0 million to $145.0 million based on same store sales in the range of 0-to-3 percent. A net loss is expected to be in the range of $1.8 million to $1.3 million, or between 4 to 3 cents a share. For fiscal 2015, sales are expected to be in the range of $720.0 million to $740.0 million based on opening nine new stores and same store sales in the range of 1 to 2 percent. Net income is expected to be in the range of $23.9 million to $26.7 million, or 56 to 63 cents a share.

Said Schaefer, “As we begin fiscal 2015, we remain focused on our strategic initiatives and continue to see abundant white space and significant share opportunity to be captured within the outdoor sporting goods market. We believe we are well positioned to capitalize on this opportunity given our distinguishing attributes of high service levels, everyday value and local shopping convenience.”