Sportsman’s Warehouse stock surges; retailer has no plans to restrict gun sales

By Christen Smith

Share prices for the retailer surged double digits this week after unimpressive annual earnings and a commitment from new CEO Jon Barker to leave firearm sales policies alone. (Photo: Sportsman’s Warehouse)
Stock prices for Sportman’s Warehouse surged 12 percent this week despite the retailer’s recent report of decreased earnings.
Chief Executive Officer Jon Barker told investors Wednesday the company’s annual net income last year fell nearly $13 million short of 2016, representing a 41 percent decline overall. Net sales, however, climbed 3.8 percent — a rarity in the current outdoor retail environment.
“The industry backdrop remains challenging in 2017 as we lap some difficult comparisons from 2016 and navigated a heightened promotional environment in fiscal year 2017,” Barker said during a conference call last week. “Despite this difficult backdrop and increased promotional activity in the second half, we increased gross margins by 10 basis points for the year.”
He described the year as “productive,” noting the company met its goal of opening 12 stores and eliminated $2.3 million in debt. The retailer also expects some growth in firearm sales and an increase in ammunition prices.
“We expect the promotional headwinds to lessen as the disruption from industry consolidation dissipates and inventory positions normalize in the

Source: Guns.com