Sportsman's Warehouse plummets after CEO exit, Q1 loss forecast

Sportsmans Warehouse Holdings

13/04/2023 13:14

** Shares of Sportsman's Warehouse Holdings Inc  SPWH.O  down 22% at $6.50 in premarket
trade
    ** Co on Wednesday after markets closed said CEO Jon Barker will retire effective April 14,
and Chairman Joseph Schneider has been appointed interim CEO
    ** The sporting goods retailer also projects downbeat Q1 sales and a loss for the period,
compared with analysts' expectations of a profit, according to Refinitiv data 
    ** Co sees Q1 loss of 35 cents to 40 cents/shr on an adjusted basis vs estimates for profit
of 3 cents/shr
    ** SPWH expects Q1 net sales between $265 mln and $270 mln vs expectation of $316.7 mln 
    ** Craig-Hallum downgrades stock to "hold" from "buy"; cuts PT by $3 to $10
    ** Says it is on sidelines until "there is better visibility into a return of positive
same-store sales (SSS) comps and margin expansion" 
    ** Brokerage notes that until SSS comps turn positive and there is a new CEO, shares will
remain pressured
    ** Up to Wednesday's close, stock had fallen ~23% in past 12 months

 (Reporting by Granth Vanaik in Bengaluru)
 ((Granth.Vanaik@thomsonreuters.com; Twitter: https://twitter.com/Vanaik_Granth))