Sportsman's Warehouse (SPWH) PT Lowered to $5 at Lake Street Capital Markets

Lake Street Capital Markets analyst Mark Smith lowered the price target on Sportsman's Warehouse (NASDAQ: SPWH) to $5.00 (from $6.00) while maintaining a Buy rating.

The analyst commented: "SPWH reported 1Q:F24 results that were below expectations. We think a challenging macro environment and weak apparel and footwear salesimpeded revenue and margin. Same-store sales declined (13.5%) compared to our (7.5%) estimate and revenue of $244.2M was below our $263.9M estimate.
Gross margins of 30.2% held up nicely compared to our 30.7% estimate and consensus of 31.3% despite weak sales of apparel and footwear, the highest margin segments. Adjusted loss per share of ($0.47) missed our ($0.35) Adj. EPS estimate and consensus. Adjusted EBITDA of ($8.7M) was below our ($2.5M) estimate and consensus of ($4.8M). We saw some positive signs around the fishing segment which was an emphasis for management, but most other segments were below our expectations in a weak consumer environment. Maintaining Buy Rating And Lowering Price Target To $5. We derive our new $5 price target by applying a 6.5x EV/EBITDA multiple to our new F2025 EBITDA estimate.

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