Sportsman’s Warehouse Holdings Inc.’s revenues jumped 41.8 percent in the first quarter due to surging demand for firearms and ammunition. Said Jon Barker, CEO, in a statement, “We introduced many new customers to the Sportsman’s Warehouse brand during the first quarter, and we believe this bodes well for our long-term growth.”
“We are excited with our first-quarter results. I could not be more proud of the Sportsman’s Warehouse team as we navigated both a global health pandemic and surging demand in our business,” said Jon Barker, Sportsman’s Warehouse CEO. “We were fortunate to be able to safely keep the majority of our stores open for business as well as serve customers through our eCommerce platform. During the first quarter of 2020, our same-store sales were up 28.6 percent compared to the same period last year, led by a surge in demand for firearms and ammunition. We introduced many new customers to the Sportsman’s Warehouse brand during the first quarter and we believe this bodes well for our long-term growth.”
Barker continued, “We believe the COVID-19 situation is impacting consumer behavior and motivating people to spend more time outdoors. Our products fit exceptionally well into an environment in which consumers are spending more time fishing, camping, hiking and hunting. Additionally, we believe the upcoming election cycle has the potential to continue to drive demand for our firearms and ammunition products.”
“However, there is significant uncertainty and variability in the current economic environment. Therefore, we will not be providing forward guidance today. We will continue to be financially disciplined as we limit discretionary expenses, pay down debt and preserve our liquidity to effectively navigate these uncertain times. In the long-term, we believe we are uniquely positioned to capitalize on market share opportunities and changing consumer behavior to become a larger and more profitable company.”
For The Thirteen Weeks Ended May 2, 2020:
Net sales were $246.8 million, an increase of $72.8 million, or 41.8 percent, as compared to the first quarter of the fiscal year 2019. The net sales increase was primarily due to a surge in demand for firearms, ammunition and to a lesser extent, other essential products, including water filtration, food preparation and dehydrated food, as well as strong growth in our eCommerce platform compared to the prior-year period.
Same-store sales increased by 28.6 percent during the first quarter of 2020 compared to the first quarter of 2019.
Net loss was $1.1 million compared to a net loss of $5.5 million in the first quarter of 2019. Adjusted net income was $0.4 million compared to an adjusted net loss of $5.2 million in the first quarter of 2019.
Adjusted EBITDA was $8.2 million compared to $0.4 million in the prior year.
Gross profit was $74.8 million or 30.3 percent of net sales, as compared to $54.2 million or 31.1 percent of net sales in the prior-year period, a year-over-year increase of $20.6 million in gross profit and an 80-basis point decrease in gross profit margin.
Diluted loss per share was 3 cents per share compared to a diluted loss per share of 13 cents per share in the prior year. Adjusted diluted earnings per share were 1 cent per share compared to adjusted diluted loss per share of 13 cents per share for the comparable period in the prior year.
Balance Sheet Highlights As Of May 2, 2020:
Total debt was $144.2 million, consisting of $118.4 million outstanding under the company’s revolving credit facility and $25.7 million outstanding under the term loan, net of unamortized debt issuance costs. This is a reduction of $31.1 million of debt year-over-year.
Total liquidity was $82.4 million as of the end of the first quarter of 2020, comprised of $60.3 million of availability on the revolving credit facility and $22.1 million of cash, as compared to $41.0 million in total liquidity at the end of the first quarter of 2019.
Second Quarter and Fiscal Year 2020 Outlook:
Sportsman’s Warehouse said it will not be issuing forward guidance at this time.
Photo courtesy Sportsman’s Warehouse