Unpacking Q1 Earnings: Sportsman's Warehouse (NASDAQ:SPWH) In The Context Of Other Sports & Outdoor Equipment Retailer Stocks
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Sportsman's Warehouse (NASDAQ:SPWH) and the rest of the sports & outdoor equipment retailer stocks fared in Q1.
Some of us spend our leisure time vegging out, but many others take to the courts, fields, beaches, and campsites; sports equipment retailers cater to the avid sportsman as well as the weekend warrior. Shoppers can find everything from tents to lawn games to baseball bats to satisfy their athletic and leisure needs along with competitive prices and helpful store associates that can talk through brands, sizing, and product quality. This is a category that has moved rapidly online over the last few decades, so these sports and outdoor equipment retailers have needed to be nimble and aggressive with their e-commerce and omnichannel presences.
The 4 sports & outdoor equipment retailer stocks we track reported a slower Q1. As a group, revenues were in line with analysts’ consensus estimates.
Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation, and sports & outdoor equipment retailer stocks have had a rough stretch. On average, share prices are down 6.4% since the latest earnings results.
Weakest Q1: Sportsman's Warehouse (NASDAQ:SPWH)
A go-to destination for individuals passionate about hunting, fishing, camping, hiking, shooting sports, and more, Sportsman's Warehouse (NASDAQ:SPWH) is an American specialty retailer offering a diverse range of active gear, equipment, and apparel.
Sportsman's Warehouse reported revenues of $244.2 million, down 8.7% year on year. This print fell short of analysts’ expectations by 1.6%. Overall, it was a weak quarter for the company with a miss of analysts’ earnings and gross margin estimates.
“Although our results continue to be affected by a challenging macroenvironment, we continue to execute on our efforts on resetting the organization to focus on providing our passionate customers with great gear and exceptional service,” said Paul Stone, President and Chief Executive Officer of Sportsman’s Warehouse.
Sportsman's Warehouse delivered the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 47.1% since reporting and currently trades at $2.01.
Read our full report on Sportsman's Warehouse here, it’s free.
Best Q1: Dick's (NYSE:DKS)
Started as a hunting supply store, Dick’s Sporting Goods (NYSE:DKS) is a retailer that sells merchandise for traditional sports as well as for fitness and outdoor activities.
Dick's reported revenues of $3.02 billion, up 6.2% year on year, outperforming analysts’ expectations by 2.7%. It was a strong quarter for the company with optimistic earnings guidance for the full year and a decent beat of analysts’ earnings estimates.
Dick's achieved the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 15.6% since reporting. It currently trades at $225.38.
Is now the time to buy Dick's? Access our full analysis of the earnings results here, it’s free.
Academy Sports (NASDAQ:ASO)
Founded in 1938 as a tire shop before expanding into fishing equipment, Academy Sports & Outdoor (NASDAQ:ASO) sells a broad selection of sporting goods but is still known for its outdoor activity merchandise.
Academy Sports reported revenues of $1.36 billion, down 1.4% year on year, in line with analysts’ expectations. It was a weak quarter for the company with a miss of analysts’ gross margin and earnings estimates.
The stock is flat since the results and currently trades at $53.86.
Read our full analysis of Academy Sports’s results here.
Hibbett (NASDAQ:HIBB)
With a focus on small and mid-sized markets, Hibbett (NASDAQ:HIBB) is a specialty retailer that sells athletic apparel and footwear as well as select sports equipment.
Hibbett reported revenues of $447.2 million, down 1.8% year on year, falling short of analysts’ expectations by 1.5%. Overall, it was a decent quarter for the company with an impressive beat of analysts’ gross margin estimates.
The stock is up 1.4% since reporting and currently trades at $87.48.
Read our full, actionable report on Hibbett here, it’s free.
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