Retailer faces challenges in sporting goods market
- Sportsman’s Warehouse shares fall 9% after wider 2Q loss and lowered FY outlook
- Net loss widens to $5.9 million from $3.3 million in Q2
- Adjusted per-share loss at 14 cents, compared to expected 9 cents
- Revenue drops 7% to $288.7 million
- Same-store sales decline nearly 10%
- CEO Paul Stone cites difficult macro environment and reduced discretionary spending as reasons for poor performance
Sportsman’s Warehouse Holdings experienced a wider net loss in its fiscal second quarter, leading to a 9% drop in stock prices. The company reported a $5.9 million loss compared to last year’s $3.3 million. Adjusted per-share loss was 14 cents, while analysts expected 9 cents. Revenue fell by 7% to $288.7 million, just above the projected $285.5 million. Same-store sales dropped nearly 10%. CEO Paul Stone attributed the decline to a challenging macro environment and reduced discretionary spending. The company now expects net sales between $1.13 billion and $1.17 billion for the year, down from previous guidance of $1.15 billion to $1.23 billion.
Factuality Level: 9
Factuality Justification: The article provides accurate information about the company’s financial performance, including specific numbers and comparisons to previous quarters and analyst expectations. It also includes a statement from the CEO explaining the reasons behind the results.
Noise Level: 3
Noise Justification: The article provides relevant financial information about Sportsman’s Warehouse Holdings’ performance in its fiscal second quarter, including changes in net loss, revenue, and same-store sales. It also includes the CEO’s comment on the macro environment and discretionary spending. However, it lacks analysis of long-term trends or possibilities, accountability, scientific rigor, and actionable insights.
Public Companies: Sportsman’s Warehouse Holdings (SPWH)
Key People: Paul Stone (Chief Executive)
Financial Relevance: Yes
Financial Markets Impacted: Sportsman’s Warehouse Holdings stock
Financial Rating Justification: The article discusses the company’s financial performance, including its net loss and adjusted earnings, as well as changes to its full-year outlook. This directly impacts the company’s stock price and investor sentiment, making it financially relevant.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
Move Size: 9%
Sector: Retail
Direction: Down
Magnitude: Large
Affected Instruments: Stocks
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