Sportsman's Warehouse Holdings, Inc. (NASDAQ:SPWH) Q3 2019 Earnings Conference Call - Final Transcript

Dec 04, 2019 • 04:30 pm ET

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Sportsman's Warehouse Holdings, Inc. (NASDAQ:SPWH) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings, and welcome to Sportsman's Warehouse Third Quarter 2019 Earnings Conference Call. At this time all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Rachel Schacter of ICR. Please go ahead.

Executive
Rachel Schacter

Thank you. With me on the call is Jon Barker, Chief Executive Officer and Robert Julian, Chief Financial Officer. Before we get started, I would like to remind you of the company's Safe Harbor language. The statements we make today will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which includes statements regarding our expectations about our future results of operations, demand for our products and growth of our industry. Actual future results may differ materially from those suggested in such statements due to a number of risks and uncertainties, including those described under the caption Risk Factors in the company's 10-K for the year ended February 2, 2019 and the company's other filings made with the SEC.

We will also disclose non-GAAP financial measures during today's call. Definitions of such non-GAAP measures as well as reconciliations to the most directly comparable GAAP financial measures are provided as supplemental financial information in our press release, included as Exhibit 99.1 to the Form 8-K we furnished to the SEC today, which is also available on the Investor Relations section of our website at investors.sportsmanswarehouse.com.

Now I'd like to turn the call over to Jon Barker, Chief Executive Officer of Sportsman's Warehouse.

Executive
Jon Barker

Thank you, Rachel. Good afternoon everyone and thank you for joining us today. I'll begin by reviewing the highlights of our third quarter performance and then discuss our strategic initiatives that are driving market share gains as well as thoughts on the remainder of the fiscal year, Robert will then go over our financial results in more detail and review our outlook, after which we will open up the call to your questions.

We are very pleased with our third quarter results, which were at the high-end of our guidance on the top and bottom line, excluding the eight recently acquired stores that were not included in our original outlook. For the quarter, net sales increased 8.7% to $242.5 million driven by a 4.8% comp increase and a 11 new stores, including eight new stores acquired at the end of Q3. These eight new stores were rebranded and grand opened as Sportsman's Warehouse locations in the last two weeks of Q3.

The eight stores saw a nice grand opening sales lift, which also contributed to our non-comp sales growth for the quarter. Comparable sales increased 4.8% which came in ahead of our expectations partially due to an 80 basis point lift from generator sales in California, driven by devastating wildfires and related power outages.

Our thoughts are with everyone impacted and we are grateful to the many first responders and our store associates who helped