Guns no defense against comp decline at Sportsman's Warehouse

Weakening demand for guns and ammunition contributed to a 6.2 percent decline in same store sales at outdoor retailer Sportsman’s Warehouse Holdings.



The comp decline was offset by an increase in new stores which allowed the company to grow sales by 4.3 percent to $182.5 million and end the third quarter on Nov. 1 with 55 stores. Profits on an adjusted basis to exclude non-recurring expenses were $8.9 million, or 21 cents a share, compared to $7.1 million, or 17 cents a share.



"Our third quarter earnings came in above our guidance range driven by solid results from our non-hunting and shooting product categories combined with positive new store performance and margin expansion,” said Sportsman’s president and CEO John Schaefer. “We remain focused on our strategic growth initiatives and continue to see significant opportunities to capture additional share of the outdoor sporting goods market given the abundant white space opportunity and our unique positioning. We believe our everyday value, high service levels and local shopping convenience continue to be important distinguishing factors that drive our customer value proposition."



The company went public earlier in 2014 and during the first nine months of the year has opened eight new stores even as it bucks deteriorating demand for firearms. Same store sales at the company have declined 9.5% through the first nine months of the year as a result of the decline in demand for guns and ammunition. That trend is expected to continue in the fourth quarter with comps forecast to decline 3 percent to 6 percent.