What To Expect From Sportsman's Warehouse’s (SPWH) Q2 Earnings

Outdoor specialty retailer Sportsman's Warehouse (NASDAQ:SPWH) will be reporting results tomorrow after market close. Here’s what investors should know.

Sportsman's Warehouse missed analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $244.2 million, down 8.7% year on year. It was a weak quarter for the company, with a miss of analysts’ earnings estimates.

Is Sportsman's Warehouse a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Sportsman's Warehouse’s revenue to decline 7.9% year on year to $285 million, improving from the 11.8% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.08 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sportsman's Warehouse has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Sportsman's Warehouse’s peers in the specialty retail segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Sally Beauty delivered year-on-year revenue growth of 1.2%, beating analysts’ expectations by 1.1%, and Bath and Body Works reported a revenue decline of 2.1%, falling short of estimates by 1%. Sally Beauty traded up 8.4% following the results while Bath and Body Works was down 10.7%.

Read our full analysis of Sally Beauty’s results here and Bath and Body Works’s results here.

There has been positive sentiment among investors in the specialty retail segment, with share prices up 4.5% on average over the last month. Sportsman's Warehouse is down 5.9% during the same time and is heading into earnings with an average analyst price target of $4.4 (compared to the current share price of $2.1).

Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.