What Happened?
Shares of outdoor specialty retailer Sportsman's Warehouse (NASDAQ: SPWH) jumped 3.1% in the afternoon session as investors looked ahead to a busy week of corporate earnings reports. The outdoor specialty retailer appeared to benefit from positive sentiment in the wider market. Notably, the earnings season got off to a strong start: More than 85% of the S&P 500 stocks that reported earnings exceeded expectations, according to FactSet data. This robust performance fueled positive sentiment, suggesting that corporate profitability remained resilient despite ongoing economic uncertainties.
After the initial pop the shares cooled down to $3.57, up 3.8% from previous close.
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What Is The Market Telling Us
Sportsman's Warehouse’s shares are extremely volatile and have had 79 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 4 months ago when the stock gained 109% on the news that the company reported impressive fourth quarter 2024 results, which blew past analysts' revenue, EPS, and EBITDA expectations. The highlight was the turnaround in same-store sales, which were essentially flat, a sharp recovery from the nearly 13% drop in the same quarter last year.
The financial outlook was also encouraging as its full-year EBITDA guidance outperformed Wall Street's estimates. The broader retail environment remained challenging, but the company's focus on local and seasonal demand and a leaner inventory should provide a cushion. Zooming out, we think this quarter featured some important positives.
Sportsman's Warehouse is up 38.7% since the beginning of the year, but at $3.57 per share, it is still trading 14.3% below its 52-week high of $4.16 from June 2025. Investors who bought $1,000 worth of Sportsman's Warehouse’s shares 5 years ago would now be looking at an investment worth $217.25.
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