Sportsman's Warehouse Holdings Inc (NASDAQ:SPWH) lowered its guidance for FY19. The company also issued weak forecast for the fourth quarter.
For fiscal year 2019, net sales are now expected to be in the range of $878 million to $882 million, which represents 3.4% to 3.9% net sales growth year-over-year. The net sales expectations for fiscal year 2019 are based on same store sales in the range of down 1.7% to down 1.3% compared to fiscal year 2018.
Adjusted net income is now expected to be in the range of $18.8 million to $20.6 million with adjusted earnings per diluted share now expected to be in the range of $0.43 to $0.47 on a weighted average of approximately 43.5 million estimated common shares outstanding, when adjusted for executive transition costs and acquisition costs incurred.
For the fourth quarter of fiscal year 2019, net sales are now expected to be in the range of $250 million to $254 million based on same stores sales in the range of down 7.0% to down 6.0% compared to the corresponding period of fiscal year 2018.
CEO Jon Barker stated, "Our fourth quarter financial performance has been negatively impacted by temporary headwinds that were exacerbated by the shorter and more competitive holiday selling season.
"These headwinds were driven by key competitors discounting their firearm and ammunition inventory as they continue to de-emphasize or completely exit these categories, and difficult year-over-year sales comparisons due to legislative changes in Washington and California."
Sportsman’s shares stumbled 93 cents, or 11.7%, to $7.05
