Revenue during the quarter grew 13.03 percent to $217.16 million from $192.12 million in the previous year period. Gross margin for the quarter contracted 45 basis points over the previous year period to 34.20 percent. Total expenses were 90.54 percent of quarterly revenues, up from 90.02 percent for the same period last year. That has resulted in a contraction of 52 basis points in operating margin to 9.46 percent.

Operating income for the quarter was $20.55 million, compared with $19.17 million in the previous year period.

However, the adjusted operating income for the quarter stood at $20.55 million compared to $19.90 million in the prior year period. At the same time, adjusted operating margin contracted 89 basis points in the quarter to 9.46 percent from 10.36 percent in the last year period.

John Schaefer, President and Chief Executive Officer, stated: "We are very pleased with our third quarter results as we again met each of our financial targets while maintaining and, in some cases, improving category level gross margins against an industry backdrop that remained very promotional at both the national and the local level. We believe our unique localization strategy, efficient business model and disciplined execution allowed us to continue to take share in our hard goods as well as apparel and footwear categories in the third quarter, as we further strengthen our position as the high growth retailer in the outdoor sporting goods segment of the retail marketplace.”

For the fourth-quarter, Sportsman's Warehouse Holdings forecasts revenue to be in the range of $230 million to $235 million. Sportsman's Warehouse Holdings forecasts revenue to be in the range of $789 million to $794 million for fiscal year 2016. Sportsman's Warehouse Holdings projects net income to be in the range of $11.40 million to $12.60 million for the fourth-quarter. For financial year 2016, Sportsman's Warehouse Holdings projects net income to be in the range of $30.50 million to $31.70 million. Sportsman's Warehouse Holdings expects adjusted net income to be in the range of $11.37 million to $12.60 million for the fourth-quarter. For the financial year 2016, Sportsman's Warehouse Holdings expects adjusted net income to be in the range of $30.04 million to $31.24 million. The company expects diluted earnings per share to be in the range of $0.27 to $0.30 for the fourth-quarter. For fiscal year 2016, the company expects diluted earnings per share to be in the range of $0.72 to $0.75. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.27 to $0.30 for the fourth-quarter. For fiscal year 2016, the company expects diluted earnings per share to be in the range of $0.71 to $0.74 on adjusted basis.

The company has spent $28.02 million cash to meet investing activities during the nine month period as against cash outgo of $22.06 million in the last year period. It has incurred net capital expenditure of $28.02 million on net basis during the nine month period, up 27.02 percent or $5.96 million from year ago period.

Cash flow from financing activities was $43.74 million for the nine month period, up 137.85 percent or $25.35 million, when compared with the last year period.

Cash and cash equivalents stood at $2.69 million as on Oct. 29, 2016, up 38.64 percent or $0.75 million from $1.94 million on Oct. 31, 2015.

Working capital increases marginally
Sportsman's Warehouse Holdings, Inc has recorded an increase in the working capital over the last year. It stood at $95.49 million as at Oct. 29, 2016, up 3.98 percent or $3.65 million from $91.84 million on Oct. 31, 2015. Current ratio was at 1.44 as on Oct. 29, 2016, down from 1.53 on Oct. 31, 2015.

Cash conversion cycle (CCC) has decreased to 56 days for the quarter from 134 days for the last year period. Days sales outstanding were almost stable at 1 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 97 days for the quarter compared with 177 days for the previous year period. At the same time, days payable outstanding went down to 42 days for the quarter from 44 for the same period last year.