Revenue Falls by $41.53 Million in Comparison to Q2 2022
Sportsman’s Warehouse Holdings, Inc.(SPWH) has released its financial results for th e second quarter of 2023, revealing a net loss of $3.29 million. Additionally, the company reported net sales of $309.50 million for the thirteen weeks ending on July 29, 2023, marking a decline of $41.53 million compared to the same period last year.
Gross Profit and Operating Expenses
The company's gross profit for Q2 2023 was $100.82 million, representing 32.6% of net sales. This reflects a decrease of $16.72 million compared to the same period in 2022 when the gross profit was $117.54 million, accounting for 33.5% of net sales.
Sportsman's Warehouse Holdings, Inc. also incurred operating expenses during this period. Selling, general, and administrative expenses totaled $102.33 million, constituting 33.1% of net sales, which is a 5.5% increase from the previous year when these expenses were $97.02 million, making up 27.6% of net sales.
(Loss) Income from Operations
The (loss) income from operations for the second quarter of 2023 was reported as ($1.52 million), accounting for a -0.5% margin in comparison to Q2 2022 when the company reported income from operations of $20.52 million, with a 5.9% margin.
Interest Expense
Interest expense for Q2 2023 was $3.53 million, representing 1.1% of net sales. This is significantly higher than the interest expense of $0.77 million, which accounted for 0.2% of net sales during the same period in 2022.
(Loss) Income Before Income Taxes
The (loss) income before income taxes for Q2 2023 was ($5.04 million), with a -1.6% margin. In contrast, the company reported income before income taxes of $19.75 million in Q2 2022, with a 5.7% margin.
Income Tax (Benefit) Expense
Income tax (benefit) expense for Q2 2023 was ($1.76 million), representing a -0.6% margin. In Q2 2022, the company reported income tax expense of $5.14 million, accounting for a 1.5% margin.
Net (Loss) Income
Sportsman’s Warehouse Holdings, Inc. reported a net loss of ($3.29 million) for the second quarter of 2023, with a -1.0% margin. In the same period in 2022, the company reported a net income of $14.61 million, with a 4.2% margin.
(Loss) Earnings per Share
The basic and diluted (loss) earnings per share for Q2 2023 were both ($0.09), reflecting a decrease from the basic and diluted earnings per share of $0.35 reported in Q2 2022.
Twenty-Six Weeks Ended July 29, 2023
Net Sales Decline and Gross Profit
For the twenty-six weeks ending on July 29, 2023, Sportsman’s Warehouse Holdings, Inc. reported net sales of $577.02 million, down $83.50 million from the same period in 2022 when net sales were $660.53 million. The gross profit for this period was $180.86 million, representing 31.3% of net sales, down from $216.63 million or 32.8% of net sales in 2022.
(Loss) Income from Operations and Interest Expense
The company reported a (loss) income from operations of ($20.48 million) for the first half of 2023, with a -3.6% margin, compared to income from operations of $23.52 million and a 3.6% margin in the same period in 2022. Interest expense for the first half of 2023 was $5.57 million, representing 1.0% of net sales, compared to $1.33 million or 0.2% of net sales in the first half of 2022.
(Loss) Income Before Income Taxes and Income Tax (Benefit) Expense
The (loss) income before income taxes for the twenty-six weeks ending on July 29, 2023, was ($26.05 million), with a -4.6% margin, compared to income before income taxes of $22.19 million and a 3.4% margin in the same period in 2022. Income tax (benefit) expense for the first half of 2023 was ($7.12 million), with a -1.3% margin, compared to $5.58 million and a 0.8% margin in the first half of 2022.
Net (Loss) Income and (Loss) Earnings per Share
The company reported a net loss of ($18.93 million) for the first half of 2023, with a -3.3% margin, compared to net income of $16.61 million and a 2.5% margin in the same period in 2022. The basic and diluted (loss) earnings per share for the first half of 2023 were both ($0.50), down from basic earnings per share of $0.39 and diluted earnings per share of $0.38 in the first half of 2022.
Condensed Consolidated Balance Sheets
The company's balance sheet as of July 29, 2023, shows total assets of $996.30 million and total liabilities of $723.59 million. Stockholders' equity stands at $272.71 million.
Condensed Consolidated Statements Cash Flows
For the twenty-six weeks ending on July 29, 2023, Sportsman’s Warehouse Holdings, Inc. reported net cash used in operating activities of ($58.33 million), net cash used in investing activities of ($51.97 million), and net cash provided by financing activities of $110.80 million.
These financial results reflect a challenging quarter and first half of the year for Sportsman’s Warehouse Holdings, Inc., marked by decreased net sales and increased expenses, resulting in a net loss. The company continues to face significant headwinds in the retail landscape.
