SGBONLINE.COM – December 3, 2020 – Sportsman’s Warehouse Holdings reported sales jumped 59.1 percent in the third quarter outpacing Wall Street’s target as the hunt & fish chain was challenged to keep up with the demand for hunt, fish and camping products.
Jon Barker, CEO, on a conference call with analysts said, “Multiple factors in Q3, led by elevated participation in outdoor activities, market share gains in firearms, the election cycle, and social unrest, resulted in very favorable financial results.” He continued saying that both in-store and online demand was elevated across all categories.
The company’s quarterly growth marked a slowdown from the 80 percent year-over-year growth it saw in the second quarter, but Barker attributed the reduction to hurdles in catching up with out-of-stock products.
“During the quarter, we worked closely with our vendors and provided our customers with inventory levels that we believe were unmatched by our direct competitors; however, we are not satisfied,” said Baker. “It is our belief that inventory constraints, and not a decrease in demand, were the governor on our growth during the quarter. We ended Q3 with improved inventory positions compared to Q2 in all departments with the exception of shooting sports.”
Net sales reached $385.7 million against $242.5 million a year ago. Wall Street’s consensus estimate had been $326.2 million.
Same-store sales jumped 41 percent while same-store sales for firearms and ammunition surged 98 percent and 53 percent, respectively.
Total Sportsman’s Warehouse firearms unit sales vaulted 134 percent while adjusted NICS checks were up 57 percent during the same period. Baker said, “Once again, in the third quarter, we achieved significant market share gains in firearms confirming Sportsman’s Warehouse leadership in this category.”
Optics, electronics and the accessory category increased 26 percent during the quarter on a same-store sales basis. Apparel grew 19 percent and footwear sales grew 8 percent during the quarter. Sportsman’s Warehouse saw also saw strength in functional apparel and footwear with camouflage, outerwear and hunting boots outperforming expectations.
Discussing participation, Baker said that while final statistics are not yet available, hunting participation across many states is up double or even triple-digits this season. In addition to hunting, participation in fishing, camping and hiking continued at an elevated rate in Q3 as confirmed by national park attendance and hunting and fishing license sales.
Also helping to power its top-line growth was online growth over 200 percent year-over-year. The gains were supported by the accelerated adoption of its e-commerce platform, including BOPUS and ship-to-home. Said Baker, “This growth rate was notable given our strategic decision to prioritize inventory in stores and materially reduce digital marketing efforts which limited online growth during the quarter.” [full article]