Why Are Sportsman's Warehouse (SPWH) Shares Soaring Today

What Happened?

Shares of outdoor specialty retailer Sportsman's Warehouse (NASDAQ:SPWH) jumped 109% in the morning session after the company reported impressive fourth quarter 2024 results, which blew past analysts' revenue, EPS, and EBITDA expectations. 

The key 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.

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What The Market Is Telling Us

Sportsman's Warehouse’s shares are extremely volatile and have had 71 moves greater than 5% over the last year. But moves this big are rare even for Sportsman's Warehouse and indicate this news significantly impacted the market’s perception of the business.

The biggest move we wrote about over the last year was 4 months ago when the stock gained 29.4% on the news that the company reported a "beat and raise" quarter (Q3 2024). SPWH blew past analysts' revenue, EPS, and EBITDA expectations. 

For the full year, its revenue and EBITDA projections exceeded Wall Street's forecasts. These results stood out given management's acknowledgment of challenges, including rising prices, reducing shoppers' spending power, fewer store visits, and weaker demand across most product lines. 

Despite these challenges, the company found bright spots in fishing gear, camping equipment, and optics and accessories, which helped offset the broader declines. Zooming out, we think this was a solid "beat-and-raise" quarter.

Sportsman's Warehouse is down 23.5% since the beginning of the year, and at $1.97 per share, it is trading 52.9% below its 52-week high of $4.18 from June 2024. Investors who bought $1,000 worth of Sportsman's Warehouse’s shares 5 years ago would now be looking at an investment worth $335.90.

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