Why Is Sportsman’s Warehouse (SPWH) Stock Down 22% Today?


  • Sportsman’s Warehouse (SPWH) stock is falling alongside its fourth-quarter earnings report.
  • The company showed mixed results for the period.
  • The real thing dragging SPWH stock down is the company’s weak Q1 guidance, however.
SPWH Stock - Why Is Sportsman’s Warehouse (SPWH) Stock Down 22% Today?

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Sportsman’s Warehouse (NASDAQ:SPWH) stock is falling on Thursday after the retail company released its earnings report for the fourth quarter of 2022.

The Sportsman’s Warehouse earnings report starts with EPS of 33 cents. That’s better than the 29 cents per share Wall Street had expected for the quarter. However, it’s also a drop from the 49 cents per share reported in Q4 2021.

Revenue for the quarter came in at $379.3 million as well. That’s slightly below the $380.01 million in revenue analysts had expected. It also represents an 8.9% decrease from the $416.3 million reported in the same period last year.

Q1 Outlook Hits SPWH Stock

Investors aren’t happy about the company’s outlook for Q1, either. That includes its adjusted EPS guidance of between -40 cents and -35 cents. That is nowhere close to Wall Street’s EPS estimate of 3 cents per share for the period.

Adding to that is the company’s revenue outlook of $265 million to $270 million for Q1 2023. Yet again, this is below analysts’ revenue estimate of $316.71 million for the quarter.

Jeff White, Chief Financial Officer of Sportsman’s Warehouse, said the following about the company’s disappointing guidance:

“While we believe outdoor participation remains strong, the macroeconomic environment and inflationary pressures are weighing on the consumer and their discretionary spending. Additionally, the unusually wet and cold weather in the western U.S., where a large portion of our stores are located, is creating a later than normal start to the spring shooting, fishing and camping seasons, negatively impacting our current business.”

SPWH stock is down 21.9% in pre-market trading on Thursday!

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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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