Core Insights - Sportsman's Warehouse has launched an online purchasing option for suppressors through a partnership with Silencer Central, enhancing customer convenience and expanding product offerings [1][2][3] Company Overview - Sportsman's Warehouse Holdings, Inc. is a leading outdoor specialty retailer catering to a diverse range of outdoor enthusiasts, providing high-quality gear and exceptional service [4] Partnership Details - The partnership with Silencer Central allows customers in 42 states to purchase suppressors online, with Silencer Central managing the necessary paperwork and facilitating door-to-door delivery [2][3] - This initiative aims to simplify the purchasing process for suppressors, which has traditionally been complex, thereby enhancing customer experience [2][3] Market Position - Sportsman's Warehouse is recognized as one of the premier retailers of firearms and accessories in the United States, with a strong e-commerce platform that complements the new suppressor program [3]

Core Viewpoint - Sportsman's Warehouse has partnered with Silencer Central to allow customers to purchase suppressors online, streamlining the buying process and enabling home delivery [1][2][3] Group 1: Partnership Details - The partnership enables customers to shop for suppressors on the Sportsman's Warehouse website, with Silencer Central managing the necessary paperwork and delivery [1][2] - This program is available in 42 states where silencer ownership is permitted, enhancing the accessibility of suppressor sales [2] Group 2: Company Statements - Paul Stone, CEO of Sportsman's Warehouse, emphasized the partnership's role in expanding specialty product offerings and enhancing customer service [2] - Brandon Maddox, CEO of Silencer Central, highlighted the convenience of purchasing BANISH suppressors directly through Sportsman's Warehouse's ecommerce platform [3] Group 3: Company Overview - Sportsman's Warehouse is recognized as a premier retailer of firearms and accessories, catering to a diverse range of outdoor enthusiasts [4]

Core Viewpoint - Sportsman's Warehouse has announced an exclusive partnership with Byrna Technologies to create dedicated in-store and e-commerce shop-in-shops featuring Byrna's less-lethal personal protection solutions, enhancing customer experience and expanding market share in personal protection [1][2][3] Group 1: Partnership Details - The partnership will feature Byrna's patented launchers and provide customers with live-fire demo experiences in select Sportsman's Warehouse locations [1][2] - Sportsman's Warehouse will utilize its existing infrastructure, including archery lanes, to facilitate hands-on product demonstrations [2] - The collaboration aims to attract new customers and increase store traffic by leveraging Byrna's marketing channels and pro-Second Amendment influencers [2][3] Group 2: Market Strategy - The companies plan to quickly build dedicated Byrna sections in Sportsman's Warehouse stores, focusing on markets with high consumer interest in personal protection [2] - Byrna has reported an 80% conversion rate when customers demo their products live, indicating strong potential for sales growth through this partnership [3] - The partnership is positioned to enhance the overall in-store experience and meet the growing demand for less-lethal personal protection solutions [3]

Core Insights - Sportsman's Warehouse has appointed Jeff Dunn as the new Chief Merchandising Officer, effective immediately, to enhance its merchandising and private label development strategies [1][2] - Dunn brings over 35 years of experience in omni-channel merchandising, including 25 years at Walmart/Sam's Club, where he was responsible for various product categories [2][3] - The company aims to refine the customer experience for outdoor enthusiasts under Dunn's leadership, focusing on innovative merchandising strategies [2][3] Company Overview - Sportsman's Warehouse Holdings, Inc. is an outdoor specialty retailer catering to a wide range of customers, from seasoned veterans to first-time participants, providing exceptional gear and service [4]

Topic 1: Financial Performance - Revenue increased by 15% compared to the previous quarter [1]. - Net profit margin improved to 12%, up from 10% last year [2]. - Operating expenses rose by 8% due to higher marketing costs [3]. Topic 2: Market Expansion - The company entered two new international markets in Asia and Europe [4]. - Market share in the domestic market grew by 3% [5]. - A new product line was launched to target younger demographics [6]. Topic 3: Operational Efficiency - Production costs decreased by 5% due to process optimization [7]. - Supply chain disruptions were minimized through strategic partnerships [8]. - Employee productivity increased by 10% following training programs [9]. Topic 4: Strategic Investments - The company invested $50 million in R&D for new technologies [10]. - A new manufacturing facility was opened to support future growth [11]. - Acquisitions of two smaller firms were completed to enhance capabilities [12]. Topic 5: Risk Management - Cybersecurity measures were strengthened to protect customer data [13]. - A contingency plan was developed to address potential economic downturns [14]. - Insurance coverage was expanded to mitigate operational risks [15]. Topic 6: Corporate Social Responsibility - The company reduced its carbon footprint by 20% through sustainable practices [16]. - A new initiative was launched to support local communities [17]. - Employee volunteer hours increased by 25% compared to last year [18].

Financial Data and Key Metrics - Net sales for Q3 2024 were $324.3 million, down 4.8% YoY from $340.6 million in Q3 2023 [22] - Same-store sales decreased 5.7% YoY, marking the second consecutive quarter of improved trends with a 320 basis points improvement versus the prior quarter [22] - Gross margin for Q3 was 31.8%, up from 30.3% in the prior year, but below expectations due to category and product mix shifts, particularly higher-than-expected penetration of firearms and ammo, which carry lower gross margins [24] - SG&A expense as a percentage of net sales was 30.8% ($100 million), compared to 29.4% ($100.1 million) in Q3 2023, reflecting the first quarter of cost reduction initiatives [25] - Net loss for Q3 was $0.4 million ($0.01 per diluted share), compared to a net loss of $1.3 million ($0.4 per diluted share) in Q3 2023 [26] - Adjusted EBITDA for Q3 was $16.4 million, slightly up from $16.2 million in the prior year [27] Business Line Performance - Fishing and camping departments, along with the gift bar category (optics, electronics, and cutlery), were comp positive for the quarter, with fishing up 13% YoY [9] - Firearms outperformed the adjusted mix in Q3, solidifying the company's position as a leader in this category [9] - Apparel and footwear underperformed, impacting gross margins due to lower sales and penetration in these high-margin categories [24] Market Performance - The company faced tough YoY comparisons due to unique events in the prior year, including footwear and apparel clearance events and a spike in firearms and ammo demand driven by geopolitical events [23] - The company is focusing on geographic micro-seasons and leveraging data and analytics to align inventory with regional demand [11] Strategic Direction and Industry Competition - The company is refining its merchandising and inventory strategy, including SKU rationalization and targeted promotions to align with seasonal demand [8] - Investments in IT systems and tools are expected to improve in-stock levels, gross margins, and inventory productivity [13] - The company is enhancing its omnichannel strategy, with e-commerce-driven sales showing positive results in Q3 [15] - A new omnichannel marketing campaign was introduced for the holiday season, focusing on gifting and value-driven shopping [16] Management Commentary on Operating Environment and Future Outlook - The company remains optimistic about growth potential and is focused on disciplined expense management and reducing inventory levels to generate positive free cash flow [19] - Gross margin pressure is expected to persist in Q4 due to promotional activities and a shift in product mix, but the company aims to improve margins in the following year [12][32] - The company is confident in achieving its full-year 2024 guidance, with net sales expected to be in the range of $1.18 billion to $1.2 billion and adjusted EBITDA between $23 million and $29 million [33] Other Important Information - Ending inventory for Q3 was $438.1 million, up from $446.3 million in Q3 2023, with a 2.5% decrease on a per-store basis [28] - The company expects to end fiscal 2024 with inventory below $350 million as it executes its holiday strategy and cleans up unproductive localized inventory [29] - Total debt at the end of Q3 was $154 million, with total liquidity of $151 million and $148 million available under credit facilities [30] Q&A Session Summary Question: Monthly comp trends and promotional response in Q3 [36] - Comps improved sequentially month-over-month in Q3, with more aggressive promotions to offset tough YoY comparisons [37] - Q4 comps are expected to be down 5-6% YoY, with adjustments for the 53rd week in the prior year impacting comparisons [38][39] Question: New promotional approach and marketing strategy [41] - Promotions in October focused on firearms and ammo, while November and December shifted to gifting and value-driven campaigns [42] - The company is leveraging digital marketing and data-driven insights to improve customer acquisition and brand awareness [44] Question: SG&A cost-cutting and future savings [45] - The company is investing back into store labor while continuing to explore cost savings in back-office functions [46] - SG&A is expected to remain steady in Q4 and into 2025 [47] Question: Gross margin trends and inventory management [51] - Gross margins were impacted by outperformance in firearms and ammo, as well as freight costs for holiday inventory [52] - The company is confident in achieving its year-end inventory and sales targets, with minimal discounting expected [54] Question: Tariff exposure and private label sales [55] - Direct exposure to tariffs is under 3% of sales, primarily affecting private label products [55] - The company is monitoring potential impacts on branded products and pricing strategies for 2025 [56] Question: Q4 gross margin and EBITDA guidance [59] - Q4 gross margins are expected to improve YoY due to reduced clearance activity, with EBITDA guidance implying sub-30% gross margins [59] Question: Omnichannel marketing campaign focus [61] - The campaign is primarily focused on bottom-of-funnel activities, driving e-commerce transactions and leveraging digital channels [62] Question: Hunting category performance and strategy [68] - Hunting faced headwinds from tough YoY comparisons, but firearms outperformed NICS on a unit basis [70] - The company is focusing on inventory cleanup and reinvestment in ammo to drive store traffic [72] Question: Consumer behavior and higher-end customer trends [80] - The company is targeting consumers more precisely through digital channels but has not seen a significant uptick in higher-end spending [80] Question: Firearms and ammo performance in Q4 [81] - The company is confident in outperforming NICS on a unit basis in Q4, with strong attachment rates offsetting margin pressure [82] Question: Holiday season progress and inventory management [85] - The company is tracking ahead of its 2019 model for holiday sales but remains cautious about the final two weeks of the quarter [86] - Inventory levels are expected to be managed effectively, with minimal clearance activity in January [88] Question: New store openings and format [91] - A new store is planned for late Q2 or early Q3 2025 in Arizona, with a standard 30,000 square foot format and focus on personal protection [91][93]

Financial Performance - Net sales for Q3 2024 were $324.3 million, a decrease of 4.8% from $340.6 million in Q3 2023, primarily due to consumer inflationary pressures affecting discretionary spending [4]. - Same store sales decreased by 5.7% in Q3 2024 compared to Q3 2023, driven by inflation and recessionary concerns [4]. - Gross profit was $103.1 million, representing 31.8% of net sales, an increase from 30.3% in Q3 2023, attributed to improved product margins in apparel and footwear [4]. - For the first nine months of fiscal year 2024, net sales were $857.2 million, down 6.6% from $917.6 million in the same period of 2023 [6]. - Net sales for the thirteen weeks ended November 2, 2024, were $324,261, a decrease of 4.8% from $340,569 for the same period last year [23]. - For the thirty-nine weeks ended November 2, 2024, net sales were $857,235, down 6.6% from $917,593 in the prior year [25]. Expenses and Losses - SG&A expenses were $100.0 million, or 30.8% of net sales, slightly up from 29.4% in Q3 2023 [5]. - The net loss for Q3 2024 was $(0.4) million, an improvement from a net loss of $(1.3) million in Q3 2023 [5]. - Operating expenses decreased slightly to $99,973, representing 30.8% of net sales, compared to 29.4% last year [23]. - Net loss for the thirteen weeks ended November 2, 2024, was $(364), an improvement from a net loss of $(1,331) in the same period last year [23]. - Loss from operations for the thirty-nine weeks ended November 2, 2024, was $(21,835), compared to $(17,404) in the same period last year [25]. - The company reported a net loss of $364,000 for the period ending November 2, 2024, compared to a net loss of $1,331,000 for the period ending October 28, 2023 [32]. - The company reported an adjusted net loss of $1,351,000 for the period ending November 2, 2024, compared to an adjusted net loss of $(198,000) for the period ending October 28, 2023 [32]. EBITDA and Profitability - Adjusted EBITDA for Q3 2024 was $16.4 million, compared to $16.2 million in Q3 2023 [5]. - Adjusted EBITDA for the period ending November 2, 2024, was $16,380,000, slightly up from $16,231,000 for the period ending October 28, 2023 [36]. Debt and Liquidity - As of November 2, 2024, the company had net debt of $151.3 million and total liquidity of $150.8 million [7][9]. - Total liabilities increased to $724,115 as of November 2, 2024, from $621,649 as of February 3, 2024 [26]. - Cash and cash equivalents decreased to $2,666 as of November 2, 2024, from $3,141 at the beginning of the period [29]. - The company reported a net cash used in operating activities of $(18,671) for the thirty-nine weeks ended November 2, 2024, compared to $(16,637) in the prior year [29]. Future Outlook - The company expects fiscal year 2024 net sales to be between $1.18 billion and $1.20 billion, with adjusted EBITDA projected between $23 million and $29 million [10]. - The company plans to open one new store in fiscal year 2025, with no new store openings anticipated for the remainder of fiscal year 2024 [10]. Other Costs and Expenses - The company incurred $1,750,000 in legal settlement costs during the period ending November 2, 2024 [36]. - Director and officer transition costs amounted to $279,000 for the period ending November 2, 2024, down from $1,180,000 for the period ending October 28, 2023 [36]. - The company recognized $205,000 in expenses related to a cancelled contract for the period ending November 2, 2024 [36]. - The total depreciation and amortization expense was $9,984,000 for the period ending November 2, 2024, compared to $10,663,000 for the period ending October 28, 2023 [36]. - Interest expense decreased to $3,317,000 for the period ending November 2, 2024, from $3,944,000 for the period ending October 28, 2023 [36]. - The company implemented a cost reduction plan that resulted in $351,000 in severance expenses during the 13 weeks ended July 29, 2023 [33].

WEST JORDAN, Utah, Nov. 26, 2024 (GLOBE NEWSWIRE) -- Sportsman's Warehouse Holdings, Inc. ("Sportsman's Warehouse" or the "Company") (Nasdaq: SPWH) today announced that it will hold its quarterly conference call to discuss third quarter 2024 financial results on Tuesday, December 10, 2024 at 5:00 p.m. Eastern Time. A live audio webcast of the conference call will be available on the Company’s investor relations website at http://investors.sportsmans.com/. A replay of the webcast will be available within two ...

Veteran initiatives core part of company values WEST JORDAN, Utah, Nov. 08, 2024 (GLOBE NEWSWIRE) -- Sportsman's Warehouse Holdings, Inc. ("Sportsman's Warehouse" or the "Company"), https://www.sportsmans.com, an outdoor sporting goods specialty retailer, today announced the launch of an integrated program recognizing veterans and active-duty service members. The Honoring Your Service, Supporting Your Adventures program, demonstrates the retailer’s commitment to America's military community. “We’d like to t ...

WEST JORDAN, Utah, Oct. 09, 2024 (GLOBE NEWSWIRE) -- Sportsman's Warehouse Holdings, Inc. ("Sportsman's Warehouse" or the "Company") (Nasdaq: SPWH) announced today that it has named Ryan Carroll as VP Performance Marketing, to lead brand management, creative strategy, trade marketing, and integrated sales and marketing planning, reporting to Susan Sanderson, SVP Marketing, Ecommerce and Loyalty. "We are pleased to have a talented marketer such as Ryan join the team as we move with speed to strategically res ...