Sportsmans Warehouse Vendor

Sportsmans Warehouse Vendor

How to Sell to Sportsmans Warehouse Stores

Sportsman’s Warehouse stores provide equipment for hunting, fishing, camping and other outdoor pursuits as well as an expansive selection of firearms – with gun transfers requiring the actual purchaser to present valid government identification document as well as complete paperwork and background checks before taking possession.

Regulations restrict online sales of certain items such as ammunition, cutlery and propane; nevertheless, ecommerce now accounts for 15% of sales.


1. Know the Products

Sportsman’s Warehouse is an outdoor specialty retailer offering an expansive selection of hunting, shooting, fishing, camping and other outdoors-related products for hunting, shooting, fishing and camping. Popular brands such as ORVIS, Shimano, Plano Rapala YETI Smith Wesson Benelli can all be found at Sportsman’s Warehouse; in addition to that there is its own line of knives ammo gear special events classes expert presentations to create an exceptional shopping experience. It also supports diversity and inclusion at work as an equal opportunity employer who values diversity.

Gun sales are the backbone of Sportsman’s, providing much needed foot traffic that drives higher margin gear sales. Unfortunately, their unpredictable nature makes their forecasting more complex than an average retailer’s.

SPWH’s online business has been disappointing, yet should improve as the company expands. Gun purchases made online must be delivered to a firearm dealer with an FLL for pre-sale background checks – something all SPWH stores and its distribution center possess, offering it the chance to capitalize on this market.

This company boasts an excellent balance sheet, which should help in its expansion efforts. They plan to open 5-10 new stores annually and thereby double their square footage within three years; all new builds should boast excellent unit economics.

Investors should keep an eye on SPWH’s cash flow as it works to expand, which will require significant amounts of capital but should provide solid returns in return. With its price/earnings ratio currently below that of its peer group, its stock may represent a bargain; should sales remain near current run rates then SPWH could outperform the rest of the market but if industry slows, shares could decline further; no matter what, SPWH boasts strong brand equity and experienced management that make them a threat in outdoor industry competition.

2. Know the Customers

Sportsman Warehouse has established itself as the second player in big box hunting, fishing and camping retailing. To reach this position, Sportsman won through attrition: Dick’s closed its Field and Stream stores; Gander Mountain filed bankruptcy; and Walmart dropped guns and ammo from their offerings. Sportsman’s Warehouse’s strong balance sheet should help it scale to optimize sales in future builds with unit economics that pay back capital investment within 2.5 years and generate greater than 10% four-wall EBITDA margins from new builds.

E-commerce sales for this company are growing, yet due to regulatory restrictions they cannot sell some items – like ammunition and firearm receivers frames and silencers – online. Instead they must be delivered to local stores with Federal Firearms Licenses who will conduct necessary pre-sale background checks before sale; so online sales only make up 15% of total revenues.

Sportsman’s Warehouse strives to offer its customers a memorable shopping experience, from classes and seminars to expert presentations and community outreach efforts.

Cape Coral store donated more than $20K worth of supplies to Cape Coral Technical College’s Licensed Practical Nursing program, according to manager Ryan Nicholson, and serves as “a bridge between our Naples and Tampa stores,” serving as “a destination for all your outdoor needs”.

Sportsmans Warehouse offers various positions both physically and online. Positions available include warehouse and distribution workers, logistics specialists, customer service reps and merchandise associates. In addition to being an equal opportunity employer, Sportsmans Warehouse also provides employees with safety training as well as product knowledge and management courses. Employee satisfaction levels remain high with its employee benefits package being highly competitive while its promotion history provides excellent opportunities for advancement within the outdoors industry. This opportunity should not be passed up!

3. Know the Stores

Sportsmans Warehouse Stores are large-scale retailers that specialize in outdoor equipment and accessories for hunting, shooting, fishing, camping and other recreational activities. Their product selection spans from ammunition to ATV accessories; hunting and fishing gear including firearms, optics and tools can also be found here; clothing and footwear suitable for outdoor pursuits are also sold here along with payment options such as credit/debit/Apple Pay payments.

This company prides itself on offering high-quality brand name products at competitive prices to its customers, believing that quality equipment can enhance outdoor activities for more enjoyment. Furthermore, as a member of its communities that it serves and in order to give its customers an unforgettable shopping experience by hosting classes, seminars, expert presentations and other events – they try their hardest to create an enjoyable shopping experience by offering classes, seminars, expert presentations or special events!

Sportsman’s Warehouse started off strong. Within 13 years it had expanded to over 72 stores with $700 million in annual sales, impressive industry analysts. By 2006 however, signs of trouble had appeared within the company.

At this time, bank financing tightened, suppliers stopped shipping supplies due to nonpayment and inventories began decreasing rapidly resulting in financial loss for the company.

As a result, Sportsman’s Warehouse filed for bankruptcy protection in March 2009. Utgaard managed to save it by selling it off to investor Siedler; however, 23 stores had to close and assets sold off as part of this plan.

Although no longer selling guns directly, Outdoor Recreation Products still sells many outdoor recreational products and accessories. Guns and ammo account for roughly 55% of sales but their revenue fluctuates significantly depending on political fears; booms occur when fears about Democratic bans arise then quickly diminish when those fears recede.

Due to this, their profitability can be highly unpredictable, so if you’re considering selling to this retailer, make sure you become acquainted with its products and customers prior to submitting a proposal. Furthermore, understanding their policies and procedures will have an effect on sales potential.

4. Know the Policies

Sportsman’s Warehouse stores specialize in outdoor gear and equipment for hunting, fishing, shooting, camping and other recreational activities such as hiking. With 122 warehouse-style stores that carry products from brands such as ORVIS, Plano, Rapala YETI Huk Rustic Ridge Benelli Merrell Crispi Zamberlan they also operate a loyalty program to better serve their customers.

On its fiscal 2022 earnings call, the company reported same-store sales had declined more than expected by 7.1% due to declining sporting gun sales being partially counteracted by ammo sales increases. Ecommerce business also performed well, growing by approximately 25% year over year.

Sportsman’s Warehouse stock remains attractive despite disappointing results, thanks to a significant scale advantage in the big box hunting and fishing retail market, as well as ongoing regulatory changes that favor scaled incumbents over new competition. Furthermore, Sportsman’s Warehouse boasts an excellent track record of generating free cash flow while paying down debt – currently boasting an operating free-cash-flow yield exceeding 10%.

The company has ample room to expand, and plans on opening about 10 stores each year for now. New builds provide excellent unit economics; each new build costs $2.4 million and requires an initial investment of about $700,000. Management expects each location to reach maturity within 18-24 months and recoup its capital expense within 2.5 years.

As the company expands, it will continue to focus on offering excellent experiences to its customers and invest in its technology and data analytics capabilities to better understand customer needs and create a more efficient supply chain. Furthermore, as debt levels reduce over time through acquisitions or debt repayment plans (current debt ratio 1.1 times EBITDA is currently too high), they will take advantage of any opportunities presented as the economy improves further.

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Karen Waksman,
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