Sportsman’s Warehouse (NASDAQ:SPWH) shares slid sharply on Wednesday as guidance missed the target set by Wall Street.
For the first quarter, the West Jordan, Utah-based retailer reported beats on top and bottom lines despite same store sales decreasing 11.6% year over year and gross profits falling slightly.
“This decrease was primarily driven by a very tough comparable period as we anniversaried the demand driven by the economic stimulus received last year,” CFO Jeff White explained. “While down versus last year on a same-store basis, we did see solid performance in the apparel and footwear categories.”
By contrast, firearm sales were cited as being particularly soft.
White added that while macroeconomic issues continue to impact the business, he is confident in the company’s pricing levels and inventory management. However, these issues appeared to promote a lower-than-expected guide that prompted the slide in share price.
For the second quarter of fiscal year 2022, net sales are expected to be in the range of $330M to $350M and same store sales are set to fall between 16% and 10% year-over-year. Analysts had anticipated revenue at $360.88M. For EPS estimates, a stated range of $0.22 to $0.30 fell short of analyst estimates set at $0.34.
Shares fell over 20% at pre-market lows, trending at double-digit declines for much of the early session.
Read the earnings call transcript.