Sportsman’s Warehouse Holdings, Inc. (SPWH), an outdoor sporting goods retailer, has slid 8.50% in aftermarket trading session. Consequently, SPWH stock is trading at $15.50 at the time of the writing. The decline could be attributed to the company’s backing out of the merger with Great Outdoors. On Thursday, SPWH closed the day at $16.94 after a slight increase of 0.65% during the mid-day session.
Why SPWH Declining?
In the late hours of Thursday, SPWH announced that it has called off its merger deal with Great Outdoors Group, the owner of the Bass Pro Shops chain. The announcement has come after US Federal Trade Commission (FTC) gave feedback to the companies, which made them believe that they won’t be able to receive the clearance to close their deal. In the recent past, FTC has taken an aggressive stance over mergers. The merger deal was announced by Sportsman’s Warehouse and Great Outdoors group in December last year.
When Q3 2021 Earnings Results Would be Released?
On 24th November, SPWH announced that it would release the earnings results on the 8th of December 2021. The earnings release would provide the financial results for Q3 2021 and for the year-to-date period (nine-month period) which ended on 30th October 2021. It was expected that the company would deliver a year-over-year decline in earnings. Alongside, the company is expected to generate higher revenues when it would report the results for the third quarter of fiscal 2021. As a result of those developments, SPWH stock could see a tremendous rise or fall.
Q2 2021 Operational Results
On first September, SPWH released the operational results for the second quarter of the fiscal year 2021. The quarter ended on 31st July. The company generated net sales of $361.7 million against $380.9 million for the same quarter of 2020. The Selling, general and administrative expenses for the three-month period were $95.87 million against $83.6 million for the same period of 2020. The net income generated by the company during the period was $17.7 million (or $0.40 per basic and diluted share) against $32.4 million (or $0.75 and $0.73 per basic and diluted share) for the same period of 2020.
Future Outlook for SPWH
Recent statistics reveal that SPWH stock has neither faced a precipitous slide nor a tremendous rise. The stock has mostly followed a stabilizing pathway. For analysts, that’s a positive sign with regards to the future performance of SPWH stock. Hence, potential investors should keep a close eye on the developments related to SPWH stock.
