SPWH - Earnings call transcript Q3 2018 | Sportsman's Warehouse Holdings, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings, and welcome to Sportsman's Warehouse Third Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Rachel Schacter of ICR. you. Thank

begin. may You

Rachel Schacter

morning, Chief me Talbot, Executive Officer. Good is Chief the Jon Barker, Officer; everyone. you. on With call Financial Thank and Kevan

and demand we the make our include expectations materially Actual today remind our contain forward-looking to other SEC. XXXX, company's results from X, company's and like for Safe under Before which future those the of with the statements made language. Litigation will I for about due filings meaning Reform within results in described the uncertainties, of of XX-K Harbor we number February our growth of XXXX, statements of the the industry. Securities and of Factors ended our company's to the may caption statements including The statements started, those get Private regarding operations, the suggested differ you products in future a Risk would risks such Act year

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

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

Jon Barker

initiatives. will go questions. financial the more progress and your by outlook. Thank and discuss third the our review our you to the we in joining open strategic highlights quarter, which, Rachel. for us today. you, morning, call reviewing results Kevan I'll over begin everyone After Good detail thank then up and then our our will on of

with in results pleased top our bottom with as our line performance third were and are quarter expectations. We line

comparable third data, XXXX composition on of which positioned the sales of firearm third investments additional outlook, quarter, further reflecting total company sales $XXX.X million the the comparable the well versus high-end year across that have to the fiscal the within was market For towards of X.X% believe and to quarter our decreased again down adjusted sales grew continued mixed drilling the share across capture category. for units better the we quarter. us than business Firearm our were X.X%, the

we our firearm versus quarter, third in [ph] an mix sales the adjusted X.X% decreased of the sales The the within X.X% were drivers third components, in the ammunition For in: states reloading segments magazine X.X% primary increased serve. unit data decrease within category. and decline Ammunition the quarter. our rimfire

in-line fly our camping and was generator down change with to non-hunting third In categories, reels We hiking with core were as the solid and which fiscal Fishing products and was $X.XX was a of the with XXXX, year impact year adjusted department, from comped we performance of achieved workboots X,X% prior disasters diluted per our XX% rods, for positive positive saw we X.X%, of Looking key vendor. in along by driven footwear share from expectation. the quarter negative sales, earnings waders. fishing. promotion which a natural a from

chain quarter increased for of despite came towards costs. a expectations, in the Our margins high-end supply gross

moment. Our performance in Kevan operating line detail QX expenses greater were our financial expectations. the discuss a in will with in

progress moments made against we Now, quarter the like strategy. XXXX our beginning to third priorities key strategic spend highlighting a with omni-channel the in I’d few our for

fiscal growth of our location previously we mentioned, XXXX. plan as third end since X.X% in or August, terms growth Milpitas opened of quarter brick-and-mortar, XXth our completed during footage which In California five-store square the

X% stores next square site underway. footage plan four X% and We well fiscal to and is or ahead, open collection between for Looking growth. XXXX five store between our year year

The to these stores scheduled Michigan. first Lansing, XXXX during of of summer open in is

continue our which in our us further of allow free will e-commerce invest maintain capabilities reduction. towards to We store to cash growth, moderate flow strategy debt will and allocate

of platform are we in scale across this schedule all testament platform the platform and side, with to saw is the sportsmanswarehouse.com. we our On third e-commerce new today our I’m and the segment a our growth our strong continued of strategic within in legacy and as beta the on with quarter. partners and up this complexity, announce that pleased passion of ahead parallel operating categories and Launching commitment to initiative. team e-commerce is a sportsmans.com excited front-end during running

continue improve sportsmans.com. transitioning before URL, new Over weeks, will we the next test and platform website of the our visitors and site all to load several a new to

our very providing store our still customers the improved early, response the customer the stores we to increased the buy While Earlier in with positive our immense ready firearms versus just than already received in site. of on that ended. period the place usability in hours. for weekend schedule, platform up key pickup new XX%, processing have and pickup online content to Cyber approximately year beta across new order being the store a and is selection and shop ability firearm prior pick orders real-time, buy regulatory online within and the The during

expensive and this us store with inventory we across Over to roll-out other along to will our functionality allowing continue print to leverage foot months, our customers. assortment our satisfy the existing categories coming

accessory in launched base, of program to acquisition plan across at firearms are well of We majority firearm about as our cleaning aimed customer our relationship. value recently installation while warranty, the in-store a category engagement, a now confidence services. and increasing and as offer store concurrent which around includes customer service a life Looking time customer purchase cycle, we increase a the excited

service relationship and of a As in market firearms, launch the support in-store of customers. the leader the further strengthens our enhances the

pleased We also customer with through be royalty efforts program. engagement our our continue to

our XX% members loyalty approximately members X.X million than more and of Our revenue. grew XXXX of QX represent to XX% versus

members look forward efforts their conjunction with and e-commerce platform. preferences in these strategies utilize increasing innovative know to technologies to personalized based royalty continue about information through We for new shopping our we our marketing on

differentiates complemented sporting products goods our our us Turning branded offering outdoor label by private exclusive space. the to and within merchandizing,

concept On side, shops increase our significant highlighting the store-within-a-store we opportunity proving these drilled shops in across initiative a are QX the for how concept store present comp successful. branded categories. This brands with key

and proposition private with are a customers value our Regarding we staying points. label, label strong products our relative across price by private providing with categories

and a we testament label a During void first saw label, quality workwear the for the workwear The at Outdoor customers markets category, a to encouraged extensions by opportunity Wasatch launched performance. better positive desire response good to customer QX, fill the initial our price the given strong to key within across gear, are in best our good private product value points. private are and we

summary, our third we pleased and in our are quarter a strategic performance priorities. made So, solid with progress key on

guidance. our release, provided our narrowing full-year in press saw are previously we you As

turning Before talented call over to I we mention key the to recent wanted strengthen to a our few as team. Kevan, continue hires

brought Stoner of as our on Steve Human President has Resources. board First, Vice Senior new been

Board announced Additionally, to Eric add Inventory of [indiscernible] tremendous of added newly Rich to our has and Also, been McBee organization. are we hired as value created this Directors. month, earlier as divisions Planning. the Director will Both

Warehouse. we to his We addition are on that benefiting expertise as the to capitalize the of looking continue forward for opportunities I growth from Sportsman's had

the quarter. contributed over I’ll ahead With a to all strengthen believe want to an turn productive our the thank on that, build third we our discuss who team attractive positioning we our continue call our hardworking members I We market successful to Kevan of competitive as and financials. Finally, have runway and share. to

Kevan Talbot

comments a with Good will quarter on third morning my adjusted My results for of Jon. of Thanks to year I'll focus results. remarks fiscal then our review the XXXX. discuss begin and everyone. remainder outlook today our

press these earlier well item as release, and share to each of in provided per GAAP as our have net We which results, issued was explanation earnings an today. reconciliation income and line earnings

review results, compared XXXX. as period fiscal week year are the due sales our for in XXrd the year I comparable fiscal references same XXXX a the period to reminder all year for for fiscal Before store to XXXX, shifted to

opened for XXXX, quarter stores quarter, the of is XXXX comparable from XX footage of million last store year. $XXX.X during quarter California third in compared from with We third the to third period. ended year million same-store the XXXX. increased in-line $XXX.X for states quarter one third for with November the sales and end quarter period Net For or the of Same-store growth in Milpitas, the expectations. of to sales the X.X% the which of our fiscal weeks X.X% decreased the period X, the sales quarter X.X% the and November fiscal same ended square number are X, XX ended

fiscal year the competitive quarter of impacted new In were points, points store our only of quarter, new competition. As two XX our planned store-base last by third five new was store openings second for was opening basis headwinds Jon the of openings than with XXX better XX-compatible this stores which the the from store basis headwind mentioned, XXXX.

to including in pleased to geographies, compared a We in tailwind Gross gas of million, XXXX. fiscal $XX continue across oil provided to third X.X% to which comp comp XX-basis our increased quarter stores broad-based in $XX.X performance and be with quarter. profit markets, the point million the third year

year XX.X% basis as period, the of profit from due gross the transportation expected, XX our supply the to chain. the million of XXXX. for towards impact sales decreased $XX.X expectations percentage in to points net XXXX of quarter high-end As prior in to fiscal of a million increased in $XX.X year primarily from our of costs SG&A increasing the quarter year fiscal of X.X% third third XX.X%

SG&A stores in wages XX $XX.X and net from year in quarter This As distribution center. deleverage driven quarter operation to XXXX. by to XX.X% as in of sales, from increased basis third points planned increased fiscal XX.X%. investment of the was e-commerce our Income a expenses million million $XX.X the percentage the our was and compared quarter in approximately

a XX%. year. The effective in was prior decrease share X, tax XX We year third XXXX, to classes XX.X% rate diluted income on million, $XX.X non-recurring $X.X interest during an realize expense weighted tax XX% reduction compared $X.XX of XX-weeks specific XXXX, $X.X reform which $X.X last statutory tax ended of million EBITDA third depreciation in million, million million in used discrete to November per year. change method in which reduced of of described $XX.X based year XXXX and third or $X.X share, effective shares for was XXXX U.S. income the Our last quarter in on the $XX.X net to I the quarter based to in to assets November for in compared net to million new federal tax million compared the begun share compared quarter third million have fixed as for excludes $X.XX quarter compared XX.X year $X.X XX.X% associated relating $XX X, our structure. $X.X we of third was income with tax current the from to our the on to quarter the quarter of million diluted the million the of just million average of weighted year. the or or of debt the the of due the the in quarter tax $XX.X fiscal weeks prior shares the as items, the during or Adjusted related expense recorded corresponding of to in income for of ended net rate the the net of primarily per per XXXX Adjusted per XXXX, Net $X.XX to million XXXX, expense change to in rate third million, tax was period income, change decreased $X.XX a of period. interest $X.X diluted enacted benefit to share average

to our sheet. balance Turning

the basis of result X.X% of well ending as of our X, holidays a end million, Inventory of the new quarter the store as third of to compared inventory This for of increased was tariffs. million XXXX, shift the November of the in the and holidays increase the the prior versus being per inventory the closer was As to on to accelerate one-week a as of driven end by as our year. ahead receipts decision quarter as prior $XXX.X $XXX.X period. year

the We expect with on to consistent per prior inventory with this a basis. year fiscal end store year fiscal

$XXX.X capital liquidity million we Our on strong as with We remains credit our million quarter borrowings facility. the third ended incurred expenditures $X.X the quarter. approximately in million outstanding during $XXX in

Turning to our outlook.

outlook are for full-year. We narrowing our the

approximately the million is fiscal to range to X%, to range the $X.XX of adjusted positive as of XXXX in quarter as quarter change for of a million, fourth a Diluted on continued year to freight $XXX down due average the combined sales and common $XXX share given compared shift. estimated follows. in for the the shares expectations Our outstanding. chain. minimum of earnings fourth-quarter by e-commerce in outlook fourth wage Revenue of per headwinds one-week pressure distribution our pressures deleveraged, X% same-store wage pressures $X.XX Embedded to in competitive outlook our headwinds weighted supply continued planned driven modest wage SG&A with gross is million center. for XX our increased our investment margin in

for change the positive year of $XXX XXXX, same-store X%, we fiscal For of XXXX to million shift. year a the million revenue $XXX compared fiscal and sales one-week to expect flat adjusted to in as range

on million remainder share of $X.XX expense loan million XXXX. related our common approximately in our to of per when leverage old remains second shares quarter. pay adjusted the $X.X to during for to the and earnings Continuing weighted expect reduce XXXX adjusted for diluted estimated interest XX financing deferred continue million of of the fees for $X.XX term We average anticipate debt approximately down priority a outstanding. write-off a We $XX.X to

CapEx year to capital expenditures, to expenditures As relates for we receive sale-leaseback XXXX million $XXX,XXX $XX in deemed in total $X is e-commerce Approximately million our the to of expenditures approximately the it investment. million XXXX landlord million $XX $XX incentives $X year to of incur of approximately year. to fiscal in expect fiscal we transactions that million capital $XX capital net in inclusive or expect to attributed for to million

any Vendor operating I impacted to for in as will that, well low the to mitigate open the to year, prices back tariff Lastly, turn related is are on impact questions. underway of range. to range expect and any to our rises to the the an impact year with exposure we fiscal tariff import to double-digit to manage operator the help purchases very our for With topic to of low as the this additional tool tariffs, rest direct in-direct up and items negotiations income now potential single-digit over dollars well call call the the XXXX. use

Operator

Please Benedict Our Robert proceed Thank Instructions] line with comes of you. [Operator W. your question first with Peter from the question. Baird.

Peter Benedict

guys. Hi

there, I most kind are have and the just you comments you Kevan So, tariff the on what’s for items so when historic or what exposed made following you on – of guys and up on price sense up made to have given gone adjustments had elasticity you down? any the tariffs items a just items prices of have been guess far kind curious those

Kevan Talbot

questions, Great Peter.

as So, looked at we’ve it.

the seeing play yet, We are camping evaluating furniture, these and although into the after changes we lot we’re throughout are year. from that price have The come any that of that see changes January the hats our other that primary that one made category quite – That’s heard that these comes others, anticipate first interest not we price as are that although are categories other China. biggest me tariffs items will the that some first well. starting was as I in of the some about there a day directly in from surprised

had changes pretty to prepared if to make it there respect we’ve in elasticities going to of having and to on there, some significant what So, changes. mitigate question the discussions interesting price necessary, past, changes those. With to would happens the are be vendor's we’re our price we’re be these see we’re this, the with monitoring changes while your

it of we’ve don't be that know impact to before. elasticity I the that on and bit that we don’t has know a changes there. will I what see to magnitude kind what seen speak because interesting can price expect it So, there we’ve

Peter Benedict

that arms, guys head Okay. had market maybe talk had promotional bit goods That’s moderated sporting any of just just you curious I the definitely here? helpful mentioned just of broader last the end we there, activity farms outdoor as Can not the about quarter you kind a promotional the of of little but on within thanks. some update holidays at kind into environment? also think fire

Jon Barker

Specific.

this Jon. – start morning. Let’s Peter, with Good is

Peter Benedict

Hi, Jon.

Jon Barker

with in more start peak or Let’s first. moderated promotion definitely to a season, normalcy had this We’ve firearms last. firearm compared

inventory. last the understanding October reduce the was to you had is and we promotional our we remember, If immediately saw acquisition of finalization afterwards in of the large my players that market two and significant activity

also independents came We the the some I inventory election XXXX cycle. excess cleared out think, of through saw, of their that

deep did or seen big that last a a what week firearms We promotional retailer So, a about inventory box was – see deep but less activity competitors. past. of know I promotional in seen in again significant that from in that’s did was cadence the I one very from some the and if some or we a see consider more we our retailers very discounting that don't so. the for week ammunition it customer haven't that box from would we’ve discounts normalized very, specialized big to acquisition, clear

clearing On a see in hand, I think the that activity re-organization the was and then their of both ammunition. year this some chains partially the industry the through it last and and went on other they we in major fall players pull of manufacturers some firearms supply one back promotional did

from we year. So, that manufacture less promotion this saw

been and somewhat one So, normal a from more manufacturer. mixed, from major set back competitive it’s of but pull our

back year and deep seen from on one it’s the some side promotion We’ve or SKU. the On generators, competitors, highest pull the the that this did on camping been pretty prior the the selling their promotional side, industry vendor apparel primary highest velocity two non-firearms they fall through the have not the We’ve standard. called cadence in again discounting base in out and major seen did specifically some acquisition. I

of been a So, of the outside mix little bit firearms. it’s a

Peter Benedict

Thanks numbers a for the very if I would like sure the were guess comp firearm the comps wasn't the and question unit my I color. or last comps, That’s number earlier helpful. cited MO around you be store just total.

said, think X.X%. up I you

So, then what did you comps for curious Thank kind we’re hunting at ammo the and shooting of and look then had it. and and just you. if how quarter, like units comps firearms the

Jon Barker

units, sure total about that in here Peter, to that talk us. data the Kevan the get we metric comp make I front on Yes, of briefly unit store firearm can was shared information and the

Kevan Talbot

Yes. category positive XX On flat. our It points. hunting and basically was shooting up was basis

Our comp firearm one a ammunition was total another quarter. was was and store basis revenue X.X%, X.X%, in up the they basically on the category flat for down offset

Peter Benedict

That’s comp great. a Do you firearm Kevan? have number unit

Kevan Talbot

me. have I in front don't that of

Peter Benedict

it pass guys. it That's Okay. from me. Thanks on. I’ll

Kevan Talbot

Thanks Peter.

Operator

you. Thank

Our Keith with the comes of next line your Peter with Piper question. Please question Jaffray. from proceed

Bobby Friedner

question Good like private Friedner around for morning Bobby there guys. Peter. it actually It’s initiatives is quick going. label, A interesting on seems

positive be to could Thank margin, you Just you. hoping great. where any on that point color scale the guys would impact have

Jon Barker

Good Jon. is this Bobby, morning.

our private meaning product of we’re we’ve be either see or business. roughly on in conjunction in store. a our with growing not to developing the talked the the that single on past digits, strategically time X.X% As X.X% into the that intent to over high of something, majority a our brand is own I is it’s can in vendor label a it, with

workwear. fill looking that for gaps and in a much the expect margins, on good private varies whether the in sourcing to direct best on versus be within category. we’re gun item extreme the ranges only whether customers that are branded categories in in our Our in The expect brands a the or and assortment product as better it own to that a case is the are a would depending missing better you key brands label cooler, an we

you certain store we an that’s sometimes store can past nearly have looking or manufacturers model our stays that behalf and think you other Throughout There improvement, a only consumer business every haven't consumer. that instance and The one design category items the of our about are helping in for by name, item on are the be of for the than necessarily our that’s it brand receive under still have. amount our things but thing is it’s and uniqueness their to are make-ups our we about that our Where product rifle a on that the those different in being also manufacturers a a talked that’s design west to geographic-based. might things the helped unique within we us. rifle exclusives about lot East will contributes special of the and that us that’s the developed in I the to for specific find actually our assortment specific

Bobby Friedner

Alright. Thanks a lot.

Operator

Thank you.

question Please Our Kawamoto with proceed the Michael from question. next Davidson. your D. comes of line with A.

Michael Kawamoto

my guys. Hi Thanks taking for question.

up to first off, are expected the California elongated you the impact better XQ guide, held promising have comps than did given see, looks good camping? on what XQ, Just seeing material which maybe in in your any in is season wildfire

Jon Barker

saw continued It’s nearly all Michael Yes. good camping did. We We from Jon. season. drought fires and in impact morning.

As recently talked couldn't have Montana, California summer, access devastating saw elongated. most Utah, in land it. west, Mexico the have had even throughout Then you the fires throughout Wyoming, past, public Arizona the in fires we we that shutdown we New and this

to saw store, extent had directly our stores impacted associates close just very and some by terrible So, Chico it up and in did definitely definitely impacted impact fire we have in the to We that wrapped camping. business got that. that and we that,

Michael Kawamoto

buying Got omnichannel what just in-store they wire, products look online in are they up up come do pick when to customer on it. buy additional pick their Thanks. And then that the order? like, does

Jon Barker

of we’re service the pick as I store. right. is store this that only ammunition able in inventory mentioned about service can all at same a the fully the having to optics, have we're to forward. to the then that We behind shop that’s full-service and and then them that up in items, accessories, their to but the that consumer confidence the sale Michael help the firearm provide it protection We sell security contributor them couple a the full going tool, outfit to one to contacting things great time the without of online have assortment and the firearm, can within well Absolutely. plan greatest then days that our outfit items build with with plan stand consumer fully to not we're

Michael Kawamoto

Got one just are it. Good or to last manufacturers you hear. similar noted And season one, noted thought year, like buying maybe just customers something start closer to to got of a this year slower if I hunting was your later then off they that? new or you that seeing wondering to were anything if

Jon Barker

were Michael again, bit with have to late, I'm I can a that season. any have It not a could weather that. we sure little speak may but hunting with we at overall, a were data Overall, be and this have one on started the think we I year, major performance. for things north-west deer us pleased some pushed least back contributor season around more the the I know week pleased in you

Michael Kawamoto

it. Thanks for luck Got of the good and for year. rest the your time

Jon Barker

Thanks Michael.

Operator

Thank you.

proceed of next Suisse. with Seth comes from your question. the Credit Our question Sigman Please line with

Seth Sigman

Thanks. Hi of A guys, taking here. questions for question. follow-up couple thanks the

wondering wondering accretive some on quantify on in with quarter? and think chain, guys perhaps pullback this that then guess stores are that oil terms markets than outpaced less a see and regional the the those past camping Thanks. around in recent I'm you performance of the I just I I'm but coincides to anyway little gas impact those separately could oil if prices? comments of moderation been was the it and have rest what sounds to It maybe the in wildfires markets. bit starting prior quarters, And in just specifically like First so overall, the

Kevan Talbot

to we’ve oil Seth, markets past reduced oil gas with markets, tailwind quarters. and from The over gas seen certainly and the few respect correct. the what has you’re the

growth markets. performing, markets see prices, still it could do We’re with in those still the in pullback the continued pleased how but and are be of because those we oil

habits that optimistic that wallet employee markets very respect base the as customer good that. some We’re returning there base, having those to replenished in spending with to and their

to second I'm question, trying and apologies. So, my on the blink

Seth Sigman

from camping terms this in on Just the impact of fires the business the quarter? quantifying

Kevan Talbot

We know have impact, it don't but way had good necessarily quantify that. we to a an

had it we the fires some Certainly, was the factor Jon wish a markets in there. of statistics were widespread a I our indicated, So, good lot west. across as

have good way don't a unfortunately, to that. quantify So, we

Seth Sigman

Okay. in tailwind you in energy or bit? other some it markets. do to that be the moderating just clarify are may that could And you The then moderation seeing, think or factor a consumer be the it weather is

Kevan Talbot

is don't research it that tailwind I do the it still to I’d have weather growing a specifically little respect is markets. patterns in bit those with the know consumer more on moderating The some but one providing and to still weather. us. is there, a to

Seth Sigman

up year? year, X Okay. for year just and And similar decision the about think to then open the be stores next next my versus should to as CapEx follow-up question expect is elaborate it around you X on this the could the if to you store plans growth growth strategy reaccelerating we and to

Jon Barker

it Seth is Jon.

able flexibility our or the XXXX it capital with is, part so two get growth I consider At some XXXX going to of moderating We’re continue in strategy, where and our focus need to be efforts bring part. be One the we omnichannel and e-commerce to they to resources capabilities and can in then store of as growing up that into customers. stores ratios our spending we that have the to a, allows greater in say more a level conservative and a into our our similar would more us to way. XXXX reduce debt same what to time,

Seth Sigman

a of and you’ve last that Jon online you few quarters. made over lot progress Thank Okay. for the

online, that you’re strategy to and I’m on us Thanks. update more to specifically, progress I’m As would color just on customer be great? relates any just wondering appealing you’re the is that how the incremental curious, it just maybe attracting, that that

Jon Barker

Seth, I near chance up Hybris have So, to in it’s side, hopefully today check running the mentioned and a beta, I platform. will out the as

minor only of but the not time a minutes. new of literally versus in consumer will inventory our fantastic and to that get sportsmans.com for testing, updating new take every thousands bumps to weeks the load Again, of real content, but more hundreds is couple in been it sportsmanswarehouse.com. combinations and us go has functionality we response through work from and few and store providing inventory our the are access Just the of road to

and unlock on immense. and it inventory, that is and the the here think could the I experience locations So, our be leverage

we very acquisition, in a I As we digital would is, far acquisition marketing. first the to don't inning in – comes are customer new say as new customer usually are of analogies, what it sports but I when use

have as test We take Google. a inventory little with to to a started It’s us some again feed will for and optimize. it local while new just us

We had look in in online geographically to bid also to are acquire and more where great way historically customers physical haven't we markets a starting locations.

So, e-commerce our of stores most base. coming it in wouldn't surprise our from if to business you you look today is current close it's where our

and We country can story acquire bring have brand of forward. a throughout front we the entire this customers our huge what us of opportunity in until to

to up before the and that we that it’s a new again, way have it do opportunity, will but needs whole that I fashions presented in us want expect probably all we comfortable be want months So, a we that to need ramp and to be temper in we see really really excited site base. to start be, do started way you be many that new about a because and material the that to customer before working – it forms the to I

Seth Sigman

Understood. best Thanks color luck. the for of and

Jon Barker

you. Thank

Operator

Thank you.

Securities. question. the Please Our line your comes Bookbinder with Ronald next question of IFS with from proceed

Ronald Bookbinder

congratulations Good morning and quarter. another solid on

from ship e-commerce you to those the how and point? comp specialty did items firearm e-commerce difference drop items being sort especially manufacturer unit items, those from there is from able the impact with the store, the on On price the firearms, to on of in-store of what items

Kevan Talbot

one-third that drop in that to of consumer about tail, carry I that shotgun probably in the long store local the or can specific up be more tend ship in you or or meaning all Ron, that website we units on which a it in are rifle data tell unique I a might they're market to units or have me. how a or handgun a What of relationships. from incremental, calibers unique picked in. either sell we is the stores was in front coming They the the unique in not our is don't on firearm configurations

I drop ship with tail items we're increase see So, and some we’re higher with market to they anything assortment firearms price a over that selling nearly those assortment or the there's of drop or the is We consumer, sell one capital to being this unique a win to and to long nice the able anything while no that to high. a And to ship growing pleased that able website sell. consumer of year some working little next and utilizing in of tend that. nearly $XX,XXX relationships. come in every so investment on to can item average being with provide more well to opportunity able our the them the really our be significantly market be on over and extremely the bring with

Ronald Bookbinder

workwear the especially new And in great. the private on Do label, footwear, private looks you label Okay. have boots?

Jon Barker

don't will ahead not I XXXX now. got our but about. continue go Ron. We’ve that talk footwear. design it’s on to and can organization We to manufacturing plan. something It’s in we experiences around that It’s something and for time this continue say the in at evaluate, we

Ronald Bookbinder

label of private boots? asset Joe directors; Snyder wouldn't be on in a is he still develop your great board helping

Jon Barker

we lot that is. my some footwear that within and I not is manufacturing opportunity development may prepared or reference, future was components talked about design and he of the kind want we before that There the immediate Ron the be the Yes, look be very in well unique the a Joe roadmap. it’s and that category. And something that on would we have into at got for know about team to you

Ronald Bookbinder

being this, X at Okay. time, probably help labor me cost least warm is up, people cut and help whatever With offered you things is that department of makes And or knowledgeable of bit special, to a store happen that you to opportunity to an there your shopping? in maybe lastly, tight store. Last will store, was your the on to hear I labor. it in in heart being back staff the is or really availability be one the your

Kevan Talbot

week, can aligned in balance And in going a and that. time balance we've always label but could out. in stores our to on in come It’s not seasons a the be are are of be our Ron, and got good pretty geographically history a balance days models what it and it what be to are of day and only time as the balance it’s a day

we So, satisfied. never are

look we’re we of the certain the it’s certain to our our sure at downward to consumer. we’re store within At we’re feel to make sometimes pushing We service time, labor sure understaffed the times and the way watching like make think stores, labor slower day in constantly it. the on reports our adjusting hours expenses right at the that I get to we’re period. same

fine period during that got consumer, basis, there those with manage about hours slow be talking the We’ve daily it’s to on to need a a service line So, we labor we it’s an but expertise our sure down. to we’re organization. make the

Ronald Bookbinder

thank And much. good very in you holiday luck the Okay, season.

Kevan Talbot

you, Ron. Thank

Operator

Thank you.

have We remarks. question-and-answer management for any would to call I session. the closing to the back our end over like of turn reached

Jon Barker

the strategic be and over our their I employees our thank at diligently progress time. Again, in initiatives especially for X,XXX – business that, QX. to continue will With end Sportsman's and which performance forward, want time have call and I today, posted that everyone associates Warehouse we seen through you your worked and can again the thank for the to

Operator

concludes teleconference. This Thank today's you.

at have your and wonderful lines day. Thank You disconnect a participation you this your time. for may

Sportsman's Warehouse (SPWH) 28 Nov 182018 Q3 Earnings call transcript