Midvale, Utah — Increased selling, general and administrative expenses were a key factor in Sportsman’s Warehouse Holdings Inc. swinging to a net loss of $3.37 million in the first quarter of fiscal 2014, compared to net profit of $4.46 million in the same period a year earlier. The retailer plans to open eight new stores during the fiscal year, including four in the second quarter.
Net sales dropped 3% to $132.4 million from $136.5 million. Same store sales decreased by 18.1%, primarily as a result of the decline in demand for firearms and ammunition.
For the second quarter of fiscal 2014, net income is expected to be in the range of $3.9 million to $4.2 million, while net sales are expected to be in the range of $154 million to $157 million based on opening four new stores and a decrease in same-store sales from the second quarter of fiscal year 2013 in the range of 7-8%.
For fiscal 2014, net income is expected to be in the range of $18.2 million to $20.3 million, while net sales are expected to be in the range of $665 million to $675 million, based on opening eight new stores for the full year and a decrease in same store sales from fiscal year 2013 in the range of 6% to 8%.
"Our first quarter results, which came in better than our expectations, were impacted by the general slowdown in firearm sales against the surge-driven comparison from last year, a dynamic we expect to continue until the second half of this year,” said John Schaefer, president and CEO of Sportsman’s Warehouse.