Sportsman's Warehouse Posts Upbeat Q4 Profit, But Issues Weak Forecast

Sportsman's Warehouse Holdings, Inc. SPWH reported better-than-expected earnings for fourth quarter. However, the company issued a weak earnings forecast. The Midvale, Utah-based company posted quarterly net income of $3.2 million, or $0.08 per share, compared to $7.4 million, or $0.22 per share, in the year-ago quarter. Adjusted diluted earnings climbed to $0.22 per share from $0.18 per share. Its net sales rose 5.6 percent to $185.6 million from $175.7 million. However, analysts were expecting earnings of $0.21 per share on revenue of $187.15 million. Same store sales slipped 5.3 percent in the quarter. Income from operations dropped to $14.1 million in the latest quarter, versus $16.4 million in the year-ago quarter. Adjusted EBITDA rose to $21.6 million from $19.3 million. Sportsman's Warehouse ended the quarter with 55 stores in 18 states. John Schaefer, President and Chief Executive Officer, said, "We are very pleased with our performance in fiscal 2014, as we grew our store base by 17.0% with the addition of eight new stores, increased sales by 2.6% and met each of our financial performance objectives despite heightened competition in some of our larger markets and continued industry headwinds that impacted the firearms and ammunition categories…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." For the first quarter of fiscal 2015, the company expects net loss of $0.04 to $0.03 per share, on net sales of $140.0 million to $145.0 million. Analysts had expected a loss of $0.01 per share on revenue of $144.35 million. For fiscal 2015, Sportsman's Warehouse projects earnings of $0.56 to $0.63 per share, on net sales of $720.0 million to $740.0 million. Analysts had expected earnings of $0.64 per share on revenue of $734.68 million. Sportsman's Warehouse shares rose 0.38 percent to $8.00 in the after-hours trading session.