Sportsman's Warehouse Holdings, a West Jordan, Utah-based outdoor specialty retailer, experienced a significant decline in same-store sales during the fiscal second quarter. As a result, the company's shares fell by 18% to $3.70 in after-hours trading on Wednesday, following a slight increase of 1.1% at the close. Overall, shares have fallen by 52% this year.
Lower demand for products and reduced traffic, caused by inflation and its impact on consumer discretionary spending, contributed to Sportsman's Warehouse's disappointing performance. Sales dropped by 11.8% to $309.5 million, falling short of the analysts' forecast of $326 million. Moreover, same-store sales experienced a significant decline of 16.1%.
To counter these challenges, the company plans to implement cost reduction measures and increase promotional activities in order to drive sales for the remainder of the year.
In the 13 weeks ended July 29, Sportsman's Warehouse reported a loss of $3.29 million, or 9 cents per share, compared to a profit of $14.6 million, or 35 cents per share, during the same period last year.
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