Sportsman's Warehouse Holdings Inc (SPWH)

Shares of Sportsman's Warehouse Holdings Inc (SPWH) dropped by 21.62% from $5.32 to $4.17 in the trading on Thursday, December 7, 2023. The reason why SPWH is down today is due to several factors related to the company's financial performance and outlook.

• Fourth-Quarter Loss Projection: One significant reason for the stock price decline is the company's announcement of an anticipated loss of 25 to 35 cents per share in the fourth quarter. This projection negatively impacted investor sentiment.
• Third-Quarter Fiscal 2023 Results: In the third quarter of fiscal 2023, Sportsman's Warehouse reported mixed results. While revenue exceeded expectations, the company's earnings showed a narrower loss than expected, although both figures declined year-over-year.
• Sales and Gross Profit: Net sales declined 5.3% year-over-year, and same-store sales dropped 11.4%. These declines were partially offset by the opening of 15 new stores and increased demand in specific product categories due to social unrest. Gross profit decreased by 14.6% to $103.2 million, primarily due to lower product margins in the ammunition category and increased promotional activities.
• Expenses and Earnings: Selling, general, and administrative expenses decreased, but as a percentage of net revenues, they increased. Adjusted EBITDA declined significantly.
• *Financial Position and Guidance: The company's net debt was $182.5 million, and it provided guidance for the fourth quarter, expecting lower net sales and a gross margin contraction due to increased promotional activities.

Sportsman's Warehouse Holdings Inc (SPWH) reported mixed Q4 financial results, issued downbeat Q1 guidance, and announced the retirement of its CEO Jon Barker, effective April 14. Consequently, the company's shares dropped 14.2% to $7.13 in after-hours trading.

https://investorplace.com/2023/04/why-is-sportsmans-warehouse-spwh-stock-down-22-today/