By Will Feuer
Shares of Sportsman’s Warehouse fell in morning trading after the sporting-goods retailer offered a bleak earnings outlook for the current quarter as it deeply discounts products in a bid to flush old inventory.
The stock fell more than 19% to $4.27. Shares are down about 55% this year.
The West Jordan, Utah-based retailer is targeting an adjusted loss of 25 cents a share to 35 cents a share for the fourth quarter, wider than the 22 cents a share that analysts expected.
Chief Executive Paul Stone said on a conference call that the company is focusing on clearing its aging inventory to set itself up with better products next year. He said Sportsman’s Warehouse is deeply discounting products to drive traffic in the remaining weeks of the year, a move that will dent margins.
For the third quarter, same-store sales fell 11.4%, better than the 15.8% decline that analysts expected.
Write to Will Feuer at [email protected]
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