Why Shares of Sportsman's Warehouse Are Down Today
Shares of Sportsman's Warehouse Holdings (NASDAQ: SPWH) traded down more than 12% on Friday after the outdoor goods retailer slashed its fourth-quarter profit guidance. The company said it was hit by competitors' discounting and liquidating firearm and ammunition inventory, putting pressure on pricing during the key holiday season.
After markets closed on Thursday, Sportsman's Warehouse said it now expects to earn between $0.17 to $0.21 per share in the recently completed fourth quarter, down from previous guidance for a $0.29 to $0.35 profit and well below the $0.32 analyst consensus estimate. Comparable-store sales are projected to fall 6% to 7% in the quarter, with revenue expected to come in between $250 million and $254 million, versus Wall Street's expectation for $267 million in sales.
Image source: Getty Images.
Source Fool.com
