Sportsmans Warehouse (SPWH) Inventory Initiatives Drive Improvement In Comps - DA Davidson

DA Davidson analyst, Michael Kawamoto, reiterated his Buy rating on shares of Sportsman's Warehouse (NASDAQ: SPWH) and raised the price target to $6.00 (from $5.00) after the company reported a strong 2Q driven by firearms sales. Comps, revenue, and adjusted EPS of +1.7%, $211.8M, and $0.13, all topped consensus of +0.2%, $207.3M, and $0.12. Same store firearms units were up 3.3% with firearms and ammo up 5.3% together.

The analyst stated "SPWH continues to deepen its assortment in key categories, and has taken market share as a result, reflected in both its performance in the quarter and loyalty program participation. Additionally, in 2Q, SPWH began rolling out its ship from store capabilities in select markets, which should help reduce transit times while leveraging the localized assortment of the store's inventory. SPWH should be able to leverage these initiatives in 2H, helping to drive robust store traffic".

For an analyst ratings summary and ratings history on Sportsman's Warehouse click here. For more ratings news on Sportsman's Warehouse click here.

Shares of Sportsman's Warehouse closed at $4.25 yesterday.

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