Business Transformation & Strategy - The company is continuing its transformation strategy while strengthening retail fundamentals[6] - Key initiatives include omni-channel marketing reinvention, customer experience improvements, capital allocation and debt pay down, and investments in culture, people, tech and processes[7] - The company has reduced inventory by $12.7 million year-over-year and reduced debt by $27.3 million[7] 2025 Plan & Growth Focus - The company aims to drive growth by focusing on hunting, fishing, and personal protection markets[9, 10] - The company's current market share in hunting is 4% of a $12 billion total addressable market[13] - The company's current market share in fishing is 1% of a $13 billion total addressable market[14] Hunting & Fishing Market Growth - Hunting participation increased from 10.6 million in 2016 to 14.4 million in 2022, with a CAGR of +5.2%[17] - Fishing participation increased from 34.7 million in 2016 to 39.9 million in 2022, with a CAGR of +5.2%[22] Reinforcing Local Knowledge & Expertise - The company aims to be known as the leading local expert for hunting & fishing solutions[28] - The company will reinforce local knowledge through assortment and outfitters as influencers[49] - 72% of U.S. firearm owners cite protection as the major reason for ownership[63]

Group 1 - Canada Goose is part of the Retail-Wholesale sector, which includes 209 individual stocks and currently holds a Zacks Sector Rank of 10 [2] - Canada Goose has a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions, with a 2.9% increase in the consensus estimate for full-year earnings over the past quarter [3] - Year-to-date, Canada Goose has returned approximately 16%, significantly outperforming the average gain of 2.6% for the Retail-Wholesale group [4] Group 2 - Canada Goose belongs to the Retail - Apparel and Shoes industry, which consists of 39 companies and currently ranks 187 in the Zacks Industry Rank, with an average loss of 15.2% for the industry this year [6] - Sportsman's Warehouse, another stock in the Retail-Wholesale sector, has returned 23.8% year-to-date and also holds a Zacks Rank of 2 (Buy) [4][5] - Investors should continue to monitor Canada Goose and Sportsman's Warehouse for their strong performance in the Retail-Wholesale sector [7]

Core Viewpoint - Sportsman's Warehouse Holdings, Inc. (SPWH) is showing potential as a stock pick due to a recent "golden cross" event, indicating a bullish trend reversal [1][2]. Technical Analysis - A "golden cross" occurs when a short-term moving average (50-day) crosses above a long-term moving average (200-day), suggesting a potential bullish breakout [2]. - The formation of a golden cross typically follows three stages: a downtrend, the crossover of moving averages, and an upward price movement [3]. Performance Metrics - SPWH has experienced a significant rally of 88.8% over the past four weeks, indicating strong momentum [4]. - The company currently holds a 2 (Buy) rating on the Zacks Rank, suggesting favorable market sentiment [4]. Earnings Outlook - Positive earnings outlook for SPWH is supported by recent revisions, with no estimates decreasing and two revisions higher in the past two months [4]. - The Zacks Consensus Estimate for SPWH has also increased, reinforcing the bullish sentiment [4][6].

Group 1 - The company Sportsman's Warehouse (SPWH) is rated as "Hold" due to a mixed outlook [1] - The stock appears undervalued, trading at 0.63 times price-to-book and 0.11 times price-to-sales [1] - Insider buying has increased by 2.68% over the last six months, indicating potential confidence in the company's future [1]

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.While many investors like to look for moment ...

Group 1 - Sportsman's Warehouse Holdings Inc. (NASDAQ: SPWH) has experienced a strong stock recovery in recent months [1] - The outdoor sporting goods retailer has returned to positive same-store sales growth after a period of severe weakness [1] - The investment philosophy focuses on identifying mispriced securities by understanding the drivers behind a company's financials, often revealed through a DCF model valuation [1]

Financial Performance - Net sales for the thirteen weeks ended May 3, 2025, were $249.1 million, a slight increase from $244.2 million in the same period last year, representing a growth of 1.5%[24] - Gross profit for the same period was $75.6 million, compared to $73.8 million in the prior year, indicating a gross margin improvement[24] - The company reported a net loss of $21.3 million for the thirteen weeks ended May 3, 2025, compared to a net loss of $18.1 million for the same period in 2024, reflecting a deterioration in profitability[24] - The net loss for the thirteen weeks ended May 3, 2025, was $21,254 thousand, compared to a net loss of $18,066 thousand for the same period in 2024, representing an increase in loss of approximately 12.1%[30] - Total net sales for the thirteen weeks ended May 3, 2025, were $249,103, compared to $244,240 for the same period in 2024, representing a growth of approximately 1.5%[68] - Gross profit for the same period increased to $75,643 from $73,786, reflecting a gross margin improvement[68] - During the 13 weeks ended May 3, 2025, the Company recognized a net loss of $21,254, resulting in a basic and diluted loss per share of $0.56[97] Cash and Liquidity - Total current assets increased to $441.4 million as of May 3, 2025, up from $366.0 million as of February 1, 2025, showing a significant liquidity improvement[21] - The company’s cash and cash equivalents increased to $3.6 million from $2.8 million, enhancing its cash position[21] - Cash and cash equivalents at the end of the period were $3,560 thousand, up from $2,168 thousand at the end of the same period in 2024, reflecting an increase of approximately 64.0%[30] - Net cash used in operating activities was $60,234 thousand for the thirteen weeks ended May 3, 2025, compared to $34,650 thousand for the same period in 2024, indicating a significant increase of approximately 74.0%[30] - The company reported a net cash provided by financing activities of $64,766 thousand for the thirteen weeks ended May 3, 2025, compared to $36,965 thousand for the same period in 2024, an increase of approximately 75.2%[30] Expenses and Liabilities - Selling, general, and administrative expenses were $95.3 million for the thirteen weeks ended May 3, 2025, slightly higher than $94.4 million in the prior year, reflecting ongoing operational costs[24] - Total liabilities rose to $714.6 million as of May 3, 2025, compared to $616.4 million as of February 1, 2025, indicating increased financial leverage[21] - The company incurred $2,821 thousand in interest paid during the period, compared to $2,688 thousand in the same period of the previous year, reflecting an increase of approximately 4.9%[30] - Total lease expense for the thirteen weeks ended May 3, 2025, was $23,977, up from $23,398 in 2024[61] - The company’s operating lease liabilities increased significantly, with a change of $9,869 thousand for the period ended May 3, 2025, compared to $1,477 thousand in the same period of 2024[30] Market and Operational Strategy - The company plans to focus on financial discipline and expense reduction in response to adverse macroeconomic conditions, which may impact future performance[16] - The company is exploring new market opportunities and plans to open additional stores, although success in these initiatives is uncertain[16] - The company operated 146 stores across 32 states as of May 3, 2025, maintaining its retail presence while also managing an e-commerce platform[34] Legal Matters - A putative class action lawsuit was filed against the Company and its Board of Directors on January 22, 2024, in the Delaware Court of Chancery[112] - The lawsuit claims that certain provisions in the Company's advance notice bylaws are invalid and that the Board members breached their fiduciary duty of loyalty[112] - The plaintiff seeks declaratory, equitable, and injunctive relief, along with attorneys' fees and other costs on behalf of the putative class[112] - The Court stayed the action on March 27, 2025, pending the resolution of motions to dismiss in other cases challenging advance notice bylaws[112] Shareholder Information - The weighted average shares outstanding for basic and diluted shares were 38.1 million for the current period, compared to 37.6 million in the prior year, indicating a slight increase in share count[24] - The Company had $314 in outstanding deferred financing fees as of May 3, 2025[91] - As of May 3, 2025, the number of shares available for awards under the Amended 2019 Plan was 1,954[99] Tax and Financing - The effective tax rate for the Company during the 13 weeks ended May 3, 2025, was 5.9%, significantly lower than the 23.2% rate for the same period in 2024[94] - Long-term debt remained stable at $25,000 as of May 3, 2025, with an interest rate of 10.42%[70][76] - The interest rate on the amounts outstanding under the Revolving Line of Credit was 5.98% as of May 3, 2025, compared to 5.74% on February 1, 2025[86] - The Revolving Line of Credit matures on May 27, 2027, and contains customary affirmative and negative covenants[89] - The Company has a borrowing base calculation for its Term Loan, with $18,000 available for borrowing as of May 3, 2025[76] - The Company held approximately $416,400 in collateralized eligible inventory and credit card receivables related to the Term Loan and the Revolving Line of Credit as of May 3, 2025[89]

Financial Data and Key Metrics Changes - Net sales for Q1 2025 were $249.1 million, a 2% increase from $244.2 million in the same period last year, marking a strong start to the year [15] - Gross margin for the quarter was 30.4%, up 20 basis points from 30.2% a year ago, driven by favorable mix and rate improvements in the Fishing business [16] - SG&A expenses were $95.3 million, or 38.2% of net sales, compared to 38.6% in the prior year, reflecting improved expense discipline [17] - Net loss for Q1 was $21.3 million, or negative $0.56 per diluted share, compared to a net loss of $18.1 million, or negative $0.48 per diluted share in the prior year [17] - Adjusted EBITDA for Q1 was negative $9 million, compared to negative $8.7 million in Q1 2024 [18] Business Line Data and Key Metrics Changes - Firearms unit sales increased nearly 7% year-over-year, significantly outpacing the adjusted NICS data, which declined by 5.4% [7] - Positive sales comps were achieved in most core categories, including firearms, clothing, footwear, and ammunition, which was up 3% [7] - Fishing sales were up 11%, validating the new merchandising strategy with a two-year comp stock growth of 12.3% [8] - E-commerce business posted a positive comp, up 8% over last year, driven by a new digital-first marketing strategy [9] Market Data and Key Metrics Changes - The company captured market share in firearms despite a decline in adjusted NICS, indicating strong performance relative to the industry [7] - The strategic shift to everyday low prices on core ammunition calibers drove a 12% increase in ammo unit sales during the quarter [9] Company Strategy and Development Direction - The company is focused on a turnaround plan to transform Sportsman's Warehouse for sustained profitability and growth, emphasizing inventory precision, local relevance, personal protection, and brand awareness [5][6] - The launch of the Safety Outpost on the website signals a commitment to personal protection, a major growth category [11] - The company aims to reduce total inventory by the end of the year while maintaining the right products in the right stores at the right time [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic plan despite ongoing macroeconomic challenges, highlighting improved comp trends and inventory execution [24] - The company anticipates generating positive free cash flow and using excess cash to reduce debt and strengthen the balance sheet [22][41] - Full year guidance for net sales is expected to range between down 1% to up 3.5% compared to 2024, with adjusted EBITDA projected between $33 million and $45 million [23] Other Important Information - Total inventory at the end of Q1 was $412.3 million, up from $391.6 million in the same period last year, reflecting a strategic decision to pull forward inventory ahead of rising tariffs [18] - The company reduced total active SKUs by approximately 20%, simplifying the assortment and improving inventory terms [20] Q&A Session Summary Question: Can you break down comp trends by month and extend that into May? - Management noted good trends in February, with a strong performance in April, and confirmed that May also showed positive comps [26][28] Question: Is the increase in sales due to foot traffic or inventory assortments? - Management indicated a mixture of better traffic trends, positive transaction trends, and higher basket sizes contributing to the increase [29] Question: Can you clarify the $20 million inventory pull forward? - Management confirmed the strategic decision to pull forward $20 million of inventory to address tariff uncertainties and ensure stock for key seasons [36] Question: Did sales mix negatively impact gross profit margin in Q1? - Management acknowledged that heavy penetration in firearms and ammo impacted gross profit margin but was aligned with their strategy [38] Question: What are the thoughts on debt repayment this year? - Management expressed confidence in generating positive free cash flow and applying excess cash to debt repayment [41] Question: What is the impact of tariffs on the P&L? - Management indicated that the pull forward in inventory would likely mitigate tariff impacts until at least the third quarter [49]

Financial Data and Key Metrics Changes - Net sales for Q1 2025 were $249.1 million, a 2% increase from $244.2 million in the same period last year, marking a strong start to the year [17] - Gross margin for the quarter was 30.4%, up 20 basis points from 30.2% a year ago, driven by favorable mix and rate improvements in the Fishing business [18] - SG&A expenses were $95.3 million, or 38.2% of net sales, compared to 38.6% in the prior year, reflecting continued focus on expense discipline [19] - Net loss for Q1 was $21.3 million, or negative $0.56 per diluted share, compared to a net loss of $18.1 million, or negative $0.48 per diluted share in the prior year [19] - Adjusted EBITDA for Q1 was negative $9 million, compared to negative $8.7 million in Q1 2024 [20] Business Line Data and Key Metrics Changes - Firearms unit sales increased nearly 7% year-over-year, significantly outpacing the adjusted NICS data, which declined by 5.4% [8] - Positive sales comps were achieved in most core categories, including firearms, clothing, footwear, and ammunition, which was up 3% [8] - Fishing sales were up 11%, validating the new merchandising strategy with a two-year comp stock growth of 12.3% [9] Market Data and Key Metrics Changes - E-commerce business posted a positive comp, up 8% over last year, outpacing the overall business [11] - The company experienced a 12% increase in ammo unit sales during the quarter, driven by strategic pricing and inventory management [11] Company Strategy and Development Direction - The company is focused on a turnaround plan to transform Sportsman's Warehouse for sustained profitability and growth, emphasizing inventory precision, local relevance, personal protection, and brand awareness [6][7] - A new omni-channel brand campaign is being launched to reestablish Sportsman's Warehouse as the preferred destination for outdoor gear [14] - The company aims to reduce total inventory by the end of the year while maintaining the right products in the right stores at the right time [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic plan despite ongoing consumer macroeconomic challenges, highlighting the unique competitive advantage of local expertise [15] - The company anticipates generating positive free cash flow and reducing debt throughout 2025 [23][24] - Full year guidance for net sales is expected to range between down 1% to up 3.5% compared to 2024, with adjusted EBITDA projected between $33 million and $45 million [24] Other Important Information - Total inventory at the end of Q1 was $412.3 million, up from $391.6 million in the same period last year, reflecting a strategic decision to pull forward inventory ahead of rising tariffs [20] - The company reduced total active SKUs by approximately 20%, simplifying the assortment and improving inventory terms [22] Q&A Session Summary Question: Can you break down comp trends by month and extend into May? - Management noted good trends in February, with a strong performance in April and positive comp for May [27][29] Question: Is the increase in sales due to foot traffic or inventory assortments? - Management indicated a mixture of better traffic trends and higher basket sizes due to improved inventory strategies [30] Question: Can you elaborate on the $20 million inventory pull forward? - The company confirmed the strategic decision to pull forward inventory to mitigate tariff impacts and ensure stock for key seasons [38] Question: Did sales mix negatively impact gross profit margin in Q1? - Management acknowledged that heavy penetration in firearms and ammo impacted gross profit margin [39] Question: What are the thoughts on debt repayment this year? - Management expressed confidence in generating positive free cash flow to apply towards debt repayment [43] Question: What is the expected impact of tariffs on the P&L? - Management indicated that the pull forward in inventory may mitigate tariff impacts until at least the third quarter [50] Question: What is driving the outperformance relative to the industry? - The company is significantly outperforming NICS on a unit basis, driven by strategic inventory management and customer value [53]

Group 1 - The conference call for Sportsman's Warehouse Holdings, Inc. Q1 2025 earnings took place on June 3, 2025, featuring key company executives including the CEO and CFO [1][2] - The call included forward-looking statements regarding expectations about future operational results, product demand, and industry growth [2][3] - The company emphasized that actual results may differ from forward-looking statements due to various risks and uncertainties [3]