Sportsman's Warehouse Holdings Inc (SPWH) has reported 7.46 percent fall in profit for the quarter ended Jan. 28, 2017. The company has earned $10.54 million, or $0.25 a share in the quarter, compared with $11.39 million, or $0.27 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $10.54 million, or $0.25 a share compared with $11.39 million or $0.27 a share, a year ago. Revenue during the quarter grew 6.15 percent to $221.38 million from $208.55 million in the previous year period. Gross margin for the quarter contracted 39 basis points over the previous year period to 33.57 percent. Total expenses were 90.46 percent of quarterly revenues, up from 89.40 percent for the same period last year. That has resulted in a contraction of 106 basis points in operating margin to 9.54 percent.
Operating income for the quarter was $21.11 million, compared with $22.11 million in the previous year period.
However, the adjusted operating income for the quarter stood at $21.11 million compared to $22.11 million in the prior year period. At the same time, adjusted operating margin contracted 106 basis points in the quarter to 9.54 percent from 10.60 percent in the last year period.
John Schaefer, Chief Executive Officer, stated, "The retail environment remained challenging during the fourth quarter and we anniversaried both the San Bernardino tragedy and the executive orders from December and January which created a difficult comparison for our hunting and shooting category. For fiscal year 2016, we continued to strengthen our market share position with 11 new stores and a 10.4% revenue increase over the prior year, maintained flat gross margins in a promotional environment, and managed expenses, inventory and capital expenditures with discipline.”
For the first-quarter 2017, Sportsman's Warehouse Holdings Inc expects revenue to be in the range of $150 million to $155 million and its net income to be in the range of $2.60 million to $3.40 million and also expects its diluted earnings per share to be in the range of $0.06 to $0.08.
For fiscal year 2017, Sportsman's Warehouse Holdings Inc expects revenue to be in the range of $825 million to $845 million and its net income to be in the range of $25.50 million to $29 million and also expects its diluted earnings per share to be in the range of $0.60 to $0.68.
Operating cash flow drops significantly
Sportsman's Warehouse Holdings has generated cash of $15.48 million from operating activities during the year, down 56.29 percent or $19.94 million, when compared with the last year. The company has spent $27.49 million cash to meet investing activities during the year as against cash outgo of $14.95 million in the last year. It has incurred net capital expenditure of $27.49 million on net basis during the year, up 83.89 percent or $12.54 million from year ago.
Cash flow from financing activities was $11.81 million for the year as against cash outgo of $20.11 million in the last year period.
Cash and cash equivalents stood at $1.91 million as on Jan. 28, 2017, down 9.39 percent or $0.20 million from $2.11 million on Jan. 30, 2016.
Working capital increases marginally
Sportsman's Warehouse Holdings has recorded an increase in the working capital over the last year. It stood at $108.71 million as at Jan. 28, 2017, up 3.74 percent or $3.92 million from $104.79 million on Jan. 30, 2016. Current ratio was at 1.74 as on Jan. 28, 2017, down from 1.82 on Jan. 30, 2016.
Cash conversion cycle (CCC) has increased to 67 days for the quarter from 57 days for the last year period.
Days inventory outstanding has increased to 76 days for the quarter compared with 72 days for the previous year period. At the same time, days payable outstanding went down to 10 days for the quarter from 15 for the same period last year.
Debt moves up
Sportsman's Warehouse Holdings has witnessed an increase in total debt over the last one year. It stood at $195.68 million as on Jan. 28, 2017, up 8.54 percent or $15.40 million from $180.28 million on Jan. 30, 2016. Total debt was 56.51 percent of total assets as on Jan. 28, 2017, compared with 59.49 percent on Jan. 30, 2016. Interest coverage ratio improved to 6.45 for the quarter from 6.16 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]