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Sportsman's Warehouse slides after setting weak guidance

Sportsman's Warehouse Holdings (NASDAQ:SPWH) fell sharply on Wednesday after setting Q4 guidance well below expectations.

The sporting goods retailer sees Q4 sales of $370M to $385M vs. $404M consensus and EPS of $0.25 to $0.35 vs. $0.41 consensus.

The weak guidance followed an update on Q3 that showed a 15.0% drop in same-store sales and decline in adjusted EBITDA to $29.1M from $39.3M a year ago. Lower demand was seen during the quarter across most product categories with the impact of consumer inflationary pressures and recessionary concerns significant factors.

Sportsman's Warehouse (SPWH) CEO Jon Barker pointed to a challenging macroeconomic environment, but said the retailer will continue to closely manage the business with discipline and rigor, as well as maintaining a focus on leveraging investments while accelerating the growth of the store footprint.

Shares of SPWH fell 8.75% in postmarket trading to $9.41.