American outdoor sporting goods retailer Sportsman’s Warehouse has experienced a net loss of $18.1m in the first quarter (Q1) of fiscal 2024 (FY24), compared with a $15.6m net loss in Q1 FY23.
The company’s diluted loss per share for the quarter also grew to $0.48 from $0.42 in Q1 FY23.
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During the thirteen weeks ending 4 May 2024, net sales of Sportsman’s Warehouse saw a decline to $244.2m, down from $267.5m in the first quarter of FY23.
The decrease in net sales is attributed primarily to reduced consumer demand influenced by inflationary pressures, which led to a decrease in discretionary spending.
This was slightly offset by the opening of eleven new stores over the past year.
The retailer’s same-store sales also fell by 13.5% in comparison to the first quarter of fiscal 2023.
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By GlobalDataDespite the drop in net sales, gross profit for Q1 FY24 was $73.8m, or 30.2% of net sales, a slight improvement from 29.9% in the previous year.
This was driven by a better product mix and improved rates in the fishing category.
Its selling, general and administrative expenses also decreased to $94.4m, or 38.7% of net sales, driven by effective expense management initiatives that reduced payroll costs and lower new store pre-opening expenses.
Sportsman’s Warehouse president and CEO Paul Stone said: “Although our results continue to be affected by a challenging macroenvironment, we continue to execute on our efforts on resetting the organisation to focus on providing our passionate customers with great gear and exceptional service.”
The company is maintaining its fiscal year 2024 guidance, expecting net sales to range between $1.15bn and $1.23bn, with adjusted earnings before interest, taxation, depreciation and amortisation projected to be between $45m and $65m.
Sportsman’s Warehouse expects to spend between $20m and $25m, focusing primarily on technology investments.
