SPWH - Earnings call transcript Q1 2019 | Sportsman's Warehouse Holdings, Inc.

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Operator

Greetings, and welcome to the Sportsman's Warehouse First Quarter 2019 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Ms. Rachel Schacter of ICR. Thank you, you may begin.

Rachel Schacter

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

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

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

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

Jon Barker

you and joining everyone you, today. thank for Rachel. morning, Good Thank us

Robert the go our which quarter our on and your strategic on more will our outlook, in the fiscal I'll thoughts to begin the review our will open over we and discuss then initiatives by reviewing then progress up questions. the after results of year. call performance financial detail highlights and first coming

top first below and $X.XX on results in the on line were line expectations quarter bottom expectations line. with Our

and ammunition weaker to quarter, firearm year sales, X.X%, comparison. event-driven below modestly to a Comparable driven $XXX outlook, by declined sales the due million. than For difficult our decreased sales X.X% ago net expected was which primarily

the Gross quarter, expenses for by and rent margins per higher diluted share driven $X.XX variance, rate for increased for partially adjusted of Operating costs. were mix reported primarily quarter, We favorable to increased points by the due up expense. loss XX the offset quarter. $XXX,XXX basis transportation

on of further down of services comparable our within the sales mixed offerings breadth our given continued data firearm than reflective quarter adjusted Company composition across results, customer share within driving performed Drilling the our our first our is states. firearm the and dominant the we nationwide This units that strengthen are engagement. of value-added unique market with gains, industry as positioning combined better

difficult decline these For the decreased X.X% the comparison firearm to XX% an decline ammunition data. units decreased was of together year. This categories primarily the Firearms in due XX% in QX in mixed versus and XXXX. QX quarter, adjusted for last sales event-driven

For weather on our with camping non-hunting our had a negative impact both decreasing categories, as expected, and X.X%. categories, fishing

increase with footwear. Our an of soft in an XX.X% categories performed and apparel in well good X.X% of increase

strategic initiatives. our to to made pleased gears performance, on our Shifting we operational report I'm progress

gain customer are our leveraging share engagement, strategic to acquisition priorities Our omni-channel focused merchandising capabilities differentiated around growing a and assortment. market

stores of debt growth to scheduled open open focus omni-channel square us are paying allows which to tomorrow will which Lansing, while The about X.X% we track with pace format this opening planned, stores opening store our expanding grand are three Beginning standard summer. store Tennessee or have as and Fort our on reduced Michigan, capabilities. footage Wayne, in We're the Indiana to on our our its strategy, Murfreesboro, opening down this year. e-commerce and excited

on quarter, stores, goods fragmented to test concept our the on in to first opportunity small the white sporting addition As the fourth capitalizing space discussed, see highly standard industry. shop the for are Sportsman's and format, Warehouse we schedule in we outdoor format previously on we focus as

format much will hunting our gear. this these their reflects localized our categories, smaller shooting lifetime and This and reminder, curated maximizing customer a of term a focus test As commitment focus also long sports, on consumer store assortment to outdoor store on the showcase importance value core of but a to our will relationship.

We that profitably generating everyday unreserved format leveraging pricing are this national from expansive to more and to and look forward difficult assortment markets smaller operate. learnings low expertise in store for our players

Turning to e-commerce.

pleased of performance our with platform. the e-commerce very are We

now inventory up features in up for across all to positive and buy running is very store response including categories. as months been new Our strong has and website, real-time now which visibility sportsmans.com such has reception been five and pick customers online, available

has in fulfill our pick customer store Warehouse online, categories across up at store thousands while driven into providing opportunities of convenient and their Sportsman's additional their customers immediate services. Buy all need to the with engage and to

XX% approximately For prior buy first year. pick the in versus store up quarter, orders the increased online,

capabilities tools, functionality in penetration, on e-commerce generated drive to and digital experience continue initiatives. user marketing focus overall database we our sales through and the e-commerce will shopping As invest online enhancements, we improving higher

Looking eligible buying, QX On selling existing call, we from services we used at launched on for services Warehouse our purchases. Gunsmith are firearm discussed on of and limited for strategies around we personalization now nationwide are our accepting our The which and a that customer provide mind support Sportsman’s trading acquisition firearms. and engagement, repair peace providing center firearms as at scale,

the like another provides core drive is our us value. ultimately to valuable the service. lifetime options strengthen customer It engagement, customers loyalty and opportunity these yet relationship with Providing customer

shop of geographical and our through now customers focus increased to able firearms buy the As to largest outside are Warehouse that announce, of and footprint part expansion Sportsman's assortment nationwide national any of are acquisition we retailer brand, excited our of customer on sportsmans.com.

to firearm compliant on select, manner. take providing with of expand partnering nation delivery across nation the to in our safe and a option sportsmans.com are We the customers firearms reach, that the licensed providing dealers to purchased across

while to our existing customers new also these the to brand. Value-added services us strengthen such as with drawing allow relationship our customers,

QX. program loyalty to up grow driving X.X as grow revenue of well continues over to with continue during our million members XX.X% Our

that to next the program. pillar in announce excited are We

As part of loyalty launch roll industry FDIC Visa ultimately in which leading a to proposition, engagement, entirely Pending program, in Bank financing we've benefits believe our Sportsman’s and such value and driving program point increase QX we credit customer will an of card accumulation customer access lifetime Comenity of plan to class focus a our Warehouse XXXX. credit this provides retention out variety new and better offers. value. partner new identified on as We to this approval, drive strengthening

in expand to look product value point. across see as offering our opportunities a we our customers exclusive categories certain selectively category With regards to we merchandising, provide strong price for to and proposition

exclusive into kayaks, our expectations. above been product In the quarter first our which performing we offering has expanded

will the move to increase year categories. exclusive We product continue Optix into throughout packs firearm and our as penetration categories including we other

a announced across existing recently roles Senior of of Pro multiple great sporting him as outdoor and addition retailer We such the talent as of experience Merchandising. retail, experience addition. a new Authority the His our name in Sports categories of our various the Vice Walker team. few breadth new merchandising President previous make and Scott serving compliment just to Scott’s Bass

Robert’s look business to these heels on important Both board to appointment from success. Chief him position This and the comes continued well on of expertise. Officer. his are benefiting as announcement additions We very forward of for have Financial excited the

In we strategic progress summary good are our on priorities. making

fuel with positioning we the to and remainder areas while we strengthen the attracting continue as of focus key competitive business will consumers As invest channel existing look our across relationship gains new on we to market our omni year consumers. in to deepening our share

our year of sales and In terms turned updated outlook for the discuss Robert but our have updated our of EPS we high the outlook will end our guidance, guidance.

increasing ours. and retailers, retail hopeful Like product period levels an relates understand the on timely our announcement tariff a the base impact are are the will the it other action the tariffs necessary ultimately around to effective as lift include eventually actions and offset end we negotiations, and identify extended that to appropriate of expanded working we tariffs the all will Finally where minimizes action ways including customers, resolution better These impact vendor pricing where sourcing impact and to most possible. recent for tariff vendor consumer. with and

all with discipline executing call shopping Robert, the Before want to the members to in reward I loyalty. are single enjoy reason They over team our for dedication thank day. of and our to us turning every their work and tireless customers with stores our their

to to Robert I'll our financials. call discuss With turn over that, the

Robert Julian

good and morning John you everyone. Thank

John know Let me begin excited organization. pleasure saying getting with call Warehouse our I since to you team I our staff joining forward sales the corporate driving on Sportsman's the Sportsman's today. be in team the look our am Warehouse the real It's entire and profitable to working growth how a in very to on-board value. people pleased Sportsman’s mid-April the to coming contributing I'm retail been from shareholder with about to long-term operations by associates. to and

issued basis. measures our on Now, quarter on my corresponding call non-GAAP In measures press we of reconciled in figures remarks fiscal was non-GAAP our financial where have the first review GAAP with our financial today's and U.S. quarter I'll which we earnings measures, reported GAAP the the a turning are the instances today. of to then report the for release and earlier Most to numbers. the outlook the begin year results discussed discuss second XXXX.

First quarter was comparisons than last by at decline fiscal million firearm Same-store QX and quarter decreased in guidance. the in $XXX came a event-driven of or million sales low slightly competitors actions in taken was The which and ammunition primarily year expectations decline first X.X%. difficult XXXX weaker to to due compared end million net our $X X.X% year. driven of of sales by under XXXX, the from $XXX expected of sales

QX the as states. with did nice sales. footwear driven our improvement continued first we well or $XX.X profit e-commerce a million decrease our However, in X.X%. of stores $XX.X this fiscal XXXX, year the operating was categories Total XX quarter was fiscal We the ended of square in as first million clothing X.X% see $X.X XX quarter compared to and versus year XXXX gross growth in year million of footage year-over-year XXXX. quarter in

favorable mix impacting versus year Product period. rate basis variances offset partially margins Gross points the due transportation was by firearms to basis by XX.X% positive negatively basis This margins XX prior and of and in approximately result higher approximately improved ammunition to a points lower points. as margin sales. cost XX.X% increased XX XX

preopening $XX.X was in SG&A increase a year XXXX primarily million of expense fiscal and of to for change due XXXX. $X.X million X.X% quarter or increased first an Rent million expense to lower and the increases compared lower QX, million. $X.X million. and $X.X offset payroll practice increased addition expense operating expenses of $X.X cost accounting miscellaneous stores. of by These Other partially the $X.X lease expense of new were million

sales, a from percentage basis increased a XX.X% XXX de-leveraging to of lower As SG&A primarily cost net of revenue. approximately due points on XX.X% fixed to

XX.X% SG&A net have the cost, $XX.X transition of been expense executive Excluding million quarter. would sales or for

Loss fiscal year of of from in $X.X as QX operating million for compared in adjusted XXXX. costs Again would executive XXXX was million $X.X $X.X the transition the have quarter. QX to million a the loss quarter been loss first operations excluding

$X.X Our to in of million. compared interest rate result portion to the lower a the interest of improvement credit as of expense interest in a $X.X reduction term new year of credit shifted QX line amended significant the our This XXXX our loan facility, QX and bears prior balance term the was prior a million rate. which $X.X lower on also a loan on the of million

million based tax recorded $X.X $X.XX diluted QX million quarter year. count a XX.X in average based $X.X an on share per benefit compared of a to average $XX.X million or the count per net for million of of loss a last $X.X loss shares weighted share was diluted XXXX, last of or million compared $X.XX income to share on million Net $X.X as year. share diluted weighted We shares

in of or was quarter quarter adjusted period. share or last the loss prior to XXXX for of $X.XX $X.X net first XXXX million was EBITDA the $X.X Adjusted Adjusted loss year an first of loss compared to compared the a share diluted of quarter diluted in first per $X.X $X.X million in net million of $X.XX per year. million the

compared first to end at to of QX ending million. the $XX was per sheet. year, X% million store On of reduction $XXX last a balance inventory was of compared basis, $XXX as inventory XXXX Turning year. the a to quarter million last down

quarter of of team This success the capital result focused during and first expenditures a the in million year million as on management in entire organization. We XXXX the visibility analysis by and better the of greater $X.X inventory $X.X into the investments compared had data to period. prior

cash due the million versus progress The flow million is $X.X made primarily we operating in $X was improvement in negative have positive XXXX. managing XXXX QX, QX, to inventory.

as the $XXX we $XX.X of liquidity strong and with quarter availability Our ended million revolving outstanding in the remained on credit. - $XXX borrowings million line million of

in the saw which low as to our full revising headwinds guidance to our QX outlook you uncertainties. topline our at press economic reflect we as the Turning came range of in other well and year margin release results our as guidance are some end

current last outlook call. discussed includes the previously following Our that our were items on

our We term continue success organization. investments to long team for of in the make key the

hires resources In investing team are to minimum and benefits addition members. in increased new improved our wage for increases we

competitive we more in believe retailer growth plans. combined we expect make to the be continue our million Warehouse execute continue to investment as Sportsman's under our just a will will which team We $X

invested we the this will platform. to in in our and $X modernization systems We million invest And approximately platform of year. e-commerce our into continue the XXXX

We $X million XXXX. expect be investment to this in approximately

compliance We Sarbanes-Oxley. related million expect Section to associated a company additional including XXX(b) with with costs $X.X approximately public incur the additional of to being expenses

prepare to fiscal year. growth company the the status exit at As we of end emerging the

Given deferred of amortize lease new no standards the the accounting leaseback from sell we XXXX our implementation longer transaction. gain

resulting to year $X.X the occupancy XXXX. in expect expense year for our reduction increase approximately for of million per approximately$X.X We share fiscal EPS

increased implement We improve turnover. the of allow year inventory our capital us working continue this through to leverage to will that initiatives inventory

fiscal XXXX reduction sale for approximately X.X% stores of $XX down structure new XXXX sales interest net debt We benefits debt We XXXX. up of to we fiscal as the million $XXX change realized expense million year our our the to assume in now and X% of to million strategies. to $XXX expect compared and range same continue in year of

earnings cents XXXX expect on diluted $X.XX adjusted million $XX.X to $X.XX weighted of common per outstanding. We average share approximately shares

fiscal sales to up the average of Same-store diluted second compared $X.X in million. on as range is Net of quarter and net $X.XX $XXX $X.XX the range shares year follows; for Our $XX.X the income X.X% second in $XXX change outlook million down per the to outstanding. million range sales X.X% of of quarter share earnings weighted in of million. $X.X XXXX. to common the Projected approximately million to

$XX million with of in sale expenditures capital $XX million approximately to expenditures in XXXX by to in fiscal landlord and $XX capital million net expect million year to million million $XX total to continue We approximately incentives $XX $XX offset leaseback transactions.

for will I operator call to the turn With that, now back over the questions.

Operator

Instructions] first comes the your with question. of [Operator Piper line from Keith Peter with proceed Please Our question Jaffray.

Peter Keith

Is any to that And standpoint. changed it an basically at trends address is or factoring to any your QX. could current QX the driving expense a you outlook looking kind and/or guess want guidance what's into and sales was both in outlook the hoping of I from slightly just what revised and dig with happened Just that? that down understand QX baking I

JonBarker

it in Peter, does what certainly QX. bake in happened Yes

our earlier, $X guide revenue we our low in the previous of missed by on of top hit the end about we million exactly We the end As guide. mentioned revenue.

is revenue in of on bake less we SG&A that did a terms results for even that full-year amount. as revenue, we on We than our that percent top did of by lowered the reflected guidance. So so guidance the margin in were lower same have full-year that and some in expected end, the in

it's In start terms more recently. were for, bit the a than to picked up did we hoping see little of revenue, of QX a we although slower

I know to sort have in that you so QX of and want to anything we And year. end well that. through of don't add the rolls as if the Jon, the considered just that guidance,

JonBarker

Robert. I think that's accurate,

the range, experienced On Peter, lower likely of we are we provision, EPS also to QX that but reflects the continue. some did freight which QX that performance, in headwinds

don't to be this lift, have like from focused point, and with those the We going and this timing through. happen how At tariffs vendors, working we offset and may negotiating understanding try with very to tariff retailers, increases. a we'll also are, exactly our all what on clear to flow uncertainty a is that

So some tariff into part there our this. as of built EPS uncertainty is

Peter Keith

harp been does because that's seem year. And far I to of like discussion the a so some always on of with hate point dynamics precipitation but investors, it this of weather,

gone terms So your Could how dry from us of or about look QX? to maybe have if year, most now in your frame you hurting you're guys up a stores West whether QX, thinking very very helping last help year wet of year. you from year to we business, this

JonBarker

West right, ultimately moisture. extreme today very an Front went through even and the Great question, with it's the was of out for the year, most through our in with challenging and we've you're you states. many fires mid-summer year Peter. the Rockies, of of of continued Weather, This with drought Wasatch some series started exactly a rain snowpack last and through

start most Memorial today. of our we of to areas and our The high still of Utah, still many them in and So, of blown of Day rivers, Colorado. sit still in assume the multiple they're We're as are parts was out off. camping snow fishing, feet here in skiing of camping skiing I parts under

of next the itself how rest we'll fishing. be of camping manifests The and telling that for couple weeks

of going to return Now, more and back get track to a us weeks of for the year. fishing we'll normalized and we're the remainder important of amount hopeful precipitation on the next reduction for couple camping be temperatures a to with over normal is

Peter Keith

me. from question last one And

QX to dynamic? So on the basis. to the comp in that down something there per decline or impressive unique of expect should inventory Is a a we particularly that continue store with trend some at management was X% certainly quite was

Robert Julian

flow planning bringing he's in our done last have building this continue of inventory the fill fall year, turns processes. sure that results job And fantastic through of the year of expect the leader. the structure, inventory just a to making and similar around with our inventory new in-stock our rest to discussed And we a and we analytics the rate. little our on Peter, rigor our in bit a balance we

so So for that will we're there be the on very of impressed remainder continued by front we and far XXXX. his performance progress believe

Operator

Please comes line question. William Hofkin question Blair. with your next with from Our of Daniel the proceed

Daniel Hofkin

the clarify understand in regarding end wanted ammo. Obviously, to say coming I'm and aspect that you comparison just tough prior was to comparison so it firearms the trying the first below point when reflected low the plan, quarter a little bit of the and in already Just the known, comps of comparison. the year the

that Maybe little shooting bit, then that? year's this a kind drove camping, things of trends affected we what you are aspect time example? you real for and Was of some in performance could explain some weaker categories was the business your in And question. weather of that of first my was That's that speak? in hunting those or what as affected same that there terms seeing and by

Robert Julian

on reloading little a parts, driver last gun of gun in parse changes. me ammunition, was are which the QX reloading this discussion around and On bit. of than biggest as which actually and out We down a of expected. slightly comp very comp that missed That greater had was a comp Let there little growth the was we the large parts. year, - magazines, in regulation

shape a in comparison that couple little start in during April. bit down normalize was to expected in change were we the a last to in weeks. of directly seen units. actually trend We've That of to little we the last On We of a firearm the couple than weeks the good of related XXXX. actual forecast saw farther We're of firearms, April.

to a the normalized expected of on down side. said be we year-over-year. has call, I flow more Ammunition June early firearm to the kind on late pattern, As still comp see May, that started to and a last through continues little

consumer their normalize. have would gotten as on to ammunition as sales I are quickly think starting we necessarily with the back hoped. track firearms But hasn't

JonBarker

would say would We weather, to just would it question to it directly. I Yes, and to your we market not answer attribute share. attribute also not

on based than lower In fact, industry. on gaining we're the the It you expected, data, it suggests a that across was share. just next comps I those result could, think,

Daniel Hofkin

of to as Because that's other but trying seemingly than place known XX% there's maybe comment in to anyway, what the could off. No, the the you maybe that I impact to a have it lower But tariffs, have part. happened question was been the of while? that would have on an relates - thus seen forecast you year, what expected you've some just had from tough last would clarify for was, sort expectation far tariffs aspect

reasonable on other, it and broaden is multiplier about the XX% look kind of goods the to going to goods from that that that currently And potentially think XX% were like? are set to might what of of some on not tariff, same the part effect if to

Robert Julian

tranche that's expectations any guidance The XX% we and XX% for of in to in second really us. it and or year, on XX% how stores seen half regard. terms the from change our impacted new contemplated the that. would been our our water tariff in see that to not and in versus it's impact, impact was of the the and what's We've built the on based not might to and increase into that's be were have tariffs seen in real expectations an by impact If any haven't of results unclear that we the currently going inventory

our might impact directly fishing in the mitigating China, year. source to products of we're of strategies categories bit the from but But second We trying do it's be really camping have in then potential little little apply. the goods half what at that impact. that to a And John very moment, hard know the about overall and to other indirectly China talked many come and a from and

probably impact that and most ammunition, worth that impact come tariffs not the China, at as they're Frankly, doesn't out of of out positive of in not those the places. – it's Russia way U.S. coming the gets do it end do and a other that guns we're of noting hoping resolved day. these It or consumers is also

will portion large our the not business impacted tariffs by a be So, of at all.

Daniel Hofkin

I be the to your into impact say clear, and expectations, the when was tariffs have to date numbers what though for how sense into prior it's much, just a factored I to had And you when went guess your then effect? perhaps XX% thinking of even to - been versus had sort you they

Robert Julian

not sure very it's I'm Yes, that been significant.

actions think it's other a insignificant was the through I that mitigating wouldn't been by and I say relatively strategies. taken it suppliers material impact so far.

Operator

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

Peter Benedict

one on A the on mentioned a and here, still in trend normalized kind discussion. of ammo quick firearms down bit. just ammo Jon, you setting more

those guys in you about how guidance balance for of the implied should this the the second-half or we your question. over positive within are That's curious how in first there? firearms comps year? Just mean, approach I my or are XQ planning categories think

Jon Barker

flat slightly a assuming slight ] on same-store side, in and dollars firearms, the QX ammunition to are in per [ back-half. and units firearm we down increase on the On for

Peter Benedict

was the quarter? for a was the in decline number ammo, that first And and comp firearms XX%

Jon Barker

Yes, comp number.

Peter Benedict

I Turning margin implied to down XQ the the outlook, for here. is EBIT margin mean,

bit a It you seems out tease quarter? a could bit. margin the implied gross be the in down view if curious little second Just to

we I'm should in be good points pressure the How shape. are? assuming are very about gross inventories margin? what thinking Just

Robert Julian

categories, the do continue. bit experience to in that going sort I little in a the the in reflected costs some the impact pressures. QX clothing QX in year. Yes, margins we've some the But little traits, term that our of saw mix clean guidance saw what's short the We for generally think we're and in some on generally. management a and pressure guidance of margin see has related so improvement we up. also on has inventory mix of so into QX a then on. impact and Frankly, transportation But we of been product our bit built impact as that's mostly

Peter Benedict

out when the out some just that or mean underlying know thinking items, we part to think be the are the SG&A, items you mean, growth, right growth seems that guidance pace way called of of we is you've as we digit in terms in the X%. there I it through maybe growing in think other pace, to to few it here? but Is it And expense I growth X%, about rate the need should we mid-single ex of at is SG&A of the the the of a factors way X% to a think as have there's structure be call that year? the been about about about the look that balance I

Robert Julian

a and on. in Very increase Well, job to there's nice step increases a we really bit changes going function from dollars of absolute so SG&A a in in marginal of did prior cost benefit And year, from actually QX QX. increase controlling QX. wage despite some and

function increase It's And then starting for continue year. SG&A grow. three projection quarters a flattens a in to the of of remainder the in our fairly QX, the it bit wouldn't little and last to SG&A the I of in expect it step see do year. out across consistent, spend, You the

Peter Benedict

like a with the bit Could a I give dealers just expand but little scale a of partnership this sounds you initiative just guess. more little the an markets on It on just question And non-Sportsman's that? little on unclear here. the maybe that. last in interesting My I on maybe was color timing,

Jon Barker

Peter, have connected dots. I really the should

the network, units as includes well firearm and comp the through of both reach it units, a the about as dealer and in the gunsmithing. as additional think we remainder the dollars firearms year As used of growing

All of that combined growth. modeling is the included internal on in our

live. The website is already

choose in today, go area. website to or put in your to go you a choose if put So, it firearm, your the firearms cart a you dealer in cart, can

Now to be is not the so built in few that started network has the last completely weeks, clear, out. just

about very will They reach. to not within have regulatory dealers specific the are reach, will as that reputable be are we to the partners network. dealers Sportsman's our in necessarily We compliant, be going outside let Warehouse storefronts, and

and firearms weeks. the population have in XX% of call have, But U.S. minutes first delivered in home of it, we few it local additional their to can our purchase XX dealers an now

see So over areas expand the to of you'll that time, most states. XX

Operator

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

Ronald Bookbinder

the of And areas benefiting terrific any inventory On out there shipping? job is it. that flow to of and include a doing But down that inventory, also especially drop driving in? from sort of your the reduction down bringing in certain are it's shift cash

Jon Barker

in of is store firearms The buy now chance drop-ship here, Slidell, the helpful. one for, Slidell and The can't walk working any, component you Because stores. someone have immensely component and on a helpful. we that looking is things combination again the pick-up There's store, in together XX e-com into our you're of online it platform new Ron. particular caliber absolutely using good very of Ron, the find

The that us in past in now with the against allowing we any Where for have Slidell from special inventory fulfill XX one item are of your those might needs to stores the systems going turns. order inventory. to had existing our you,

turns especially buy helping So inventory the those reduction. in pick-up with our around online and store is categories firearms,

that within through local accurate our our is inventory move comes we and be an ensuring that focused keep as we other seasonally When place strategies plans are that a I we’re have for the to assortment inventory up. to apparel good of markets it that areas, that to organization think on and health will that continue

currently. heavily we're So, on apparel the is focused area that

Ronald Bookbinder

less margin correct? really in On to freight, give to the And clear. benefit the increase would you'll drive you help offset have that help that apparel because some gross would side,

Jon Barker

aren't we That's want to correct. all to Ron, clear in the categories. be be shape in though, we

that future, everything to the to and So for a rigor where will little lined up move let's take into be. so get through inventory it get to the apparel we say have spot time we some our expect with to commitments

Ronald Bookbinder

impressive footwear. And comp on footwear footwear, quarter? is What on this past driving the

Jon Barker

The weather, the weather to again, comp us is helped good I a weather bad a hate and but last choose immensely quarter. from in the

our was snowshoes very, given we the XXXX, related well, snowpack did West boots, limited. had little in If very year moisture products very, in you our snow QX related very remember, activity, the of accumulation. very snowpack and This

there. us helped weather So

Ronald Bookbinder

services, Gun to by always up, been the how community? has and how that yes, Well, going accepted sporting. has is been that outdoor weather ramping impact

Jon Barker

to started all It's all marketing of the the the in slow down, Ron, sure and technology place had staff. We make expectations. on in our that track, we with processes plans

that we're lifetime the strong progress. a in engagement very being value time its we So very with pillar Over consumer. pleased with see

Ronald Bookbinder

you of seen offer? coming loyalty now members new any you in because Have the services

Jon Barker

capabilities the I in paying engagement, loyalty don't we revenue members. for loyalty very think And that of and program indicated, capturing we're future reengagement program as customer in we've using for drive as not but percentage. are loyalty e-mails to know that those services can e-commerce our speak grow can But you new the continues us only off part to transactions. also as about nicely new in tell I account that I specifically

Operator

questions There this no closing to at like you. remarks. call would further are the time. Thank I to over back Management, any turn for

Jon Barker

care what our loyal our corporate strengthening on today, center want and today. coming our on forward up Sportsman's Their for thank over keeps team progress again distribution position. to customers is wrap to our market basis. a We passion further support that XX office our back I look employees consumers all and at building As joining call center, Thank daily I stores, our our members, Warehouse. earnings X,XXX to you

Operator

Thank you. today's concludes teleconference. This

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

Sportsman's Warehouse (SPWH) 30 May 192019 Q1 Earnings call transcript