Stock falls as company offers bleak earnings outlook

  • Sportsman’s Warehouse shares drop 19% on deep holiday discounting
  • Stock falls more than 19% to $4.27
  • Company expects adjusted loss of 25 cents to 35 cents per share for Q4
  • CEO focusing on clearing aging inventory to improve next year’s product lineup
  • Third-quarter same-store sales decline 11.4%, better than expected

Shares of Sportsman’s Warehouse fell more than 19% to $4.27 after the company provided a gloomy earnings forecast for the current quarter. The West Jordan, Utah-based retailer is deeply discounting products to clear out old inventory, which will impact profit margins. CEO Paul Stone stated that the focus is on improving the product lineup for next year. Despite a decline in same-store sales for the third quarter, the results were better than expected.

Factuality Level: 8
Factuality Justification: The article provides specific information about Sportsman’s Warehouse offering a bleak earnings outlook, deeply discounting products, and targeting an adjusted loss for the fourth quarter. It also includes the CEO’s statement about clearing inventory and driving traffic with discounts. The article mentions the decline in same-store sales for the third quarter, which is better than expected. Overall, the information provided seems factual and based on specific events and statements.
Noise Level: 3
Noise Justification: The article provides relevant information about Sportsman’s Warehouse offering a bleak earnings outlook and deeply discounting products to clear old inventory. It also includes details about the stock falling and the CEO’s comments. However, it lacks in-depth analysis, scientific rigor, and actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: Shares of Sportsman’s Warehouse
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to the financial performance of Sportsman’s Warehouse, a sporting-goods retailer. It discusses the company’s bleak earnings outlook for the current quarter and its strategy of deeply discounting products to clear aging inventory. This information is relevant to financial markets and investors.
Public Companies: Sportsman’s Warehouse (N/A)
Key People: Paul Stone (Chief Executive)

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