Sportsmans (SPWH)

History and Background

Sportsman's Warehouse was founded in 1986 in Midvale, Utah. It has grown from a single store to a national chain specializing in outdoor sporting goods. Throughout its history, Sportsman's Warehouse has focused on providing a wide selection of hunting, shooting, fishing, camping, and other outdoor recreational gear. In 2021, Great American Outdoors Group announced plans to acquire Sportsman's Warehouse, but the deal was terminated in late 2021.

Core Business Areas

• Retail Sales: The core business involves operating retail stores that sell sporting goods, including firearms, ammunition, hunting and fishing equipment, camping gear, and related accessories.
• E-Commerce: Sportsman's Warehouse also operates an e-commerce platform, allowing customers to purchase products online. This segment complements the retail stores, expanding the company's reach and convenience.
• Firearms Sales: A significant portion of revenue is derived from the sale of firearms and ammunition, catering to hunting enthusiasts and sport shooters.

Leadership and Structure

The CEO of Sportsman's Warehouse is Jon Barker. The company has a typical corporate structure with departments such as merchandising, operations, marketing, and finance.

Key Offerings

• Firearms and Ammunition: This is a major revenue driver. Market share varies by specific product category, but Sportsman's Warehouse is a significant player in the firearms retail market. Competitors include Bass Pro Shops, Cabela's (which is owned by Bass Pro), Academy Sports + Outdoors (ASO), and Dick's Sporting Goods (DKS).
• Hunting and Fishing Gear: Includes a wide range of products from rods and reels to hunting blinds and clothing. Market share data is difficult to pinpoint precisely for individual product lines, but Sportsman's Warehouse aims to be a comprehensive destination for hunting and fishing enthusiasts. Competitors are the same as above, Bass Pro Shops, Cabela's (which is owned by Bass Pro), Academy Sports + Outdoors (ASO), and Dick's Sporting Goods (DKS).
• Camping and Outdoor Equipment: Tents, sleeping bags, backpacks, and other essential camping gear. While not as large as firearms sales, this category is a significant contributor to overall revenue. Competitors include REI, Bass Pro Shops, Cabela's (which is owned by Bass Pro), and Amazon.

Industry Overview

The sporting goods industry is influenced by factors like consumer spending, outdoor recreation trends, and regulatory changes related to firearms. The industry is moderately competitive, with both large national chains and smaller regional retailers.

Positioning

Sportsman's Warehouse positions itself as a specialized retailer focused on serving the needs of outdoor enthusiasts, particularly hunters and shooters. They aim to provide a wide selection of products and knowledgeable customer service. They also provide competitive pricing and value add services.

Total Addressable Market (TAM)

The total addressable market for sporting goods in the US is estimated to be in the hundreds of billions of dollars. Sportsman's Warehouse captures a small percentage of this TAM, with significant growth potential in expanding into new regions and categories.

Key Competitors

• ASO
• DKS
• PRIVATE: Bass Pro Shops/Cabela's

Competitive Landscape

Sportsman's Warehouse is positioned as a mid-sized player in the sporting goods retail market. It competes with larger chains like Dick's Sporting Goods and Academy Sports + Outdoors, as well as smaller regional retailers and online marketplaces. Sportsman's Warehouse differentiates itself with its focus on hunting and shooting and its knowledgeable staff.

Historical Growth: Sportsman's Warehouse has grown steadily over the years, primarily through opening new retail stores. The pace of growth has varied depending on market conditions and strategic decisions.

Future Projections: Future growth projections for Sportsman's Warehouse are dependent on various factors, including the overall health of the economy, the demand for sporting goods, and the company's ability to execute its strategic plans. Analyst estimates vary but generally project continued modest growth.

Recent Initiatives: Recent initiatives include expanding their e-commerce platform and focusing on customer loyalty programs.

Sportsman's Warehouse is a specialized retailer that caters to the outdoor enthusiast, particularly hunters and shooters. Its strengths lie in its brand recognition, specialized product selection, and knowledgeable staff. However, its dependence on firearm sales and competition from larger retailers pose challenges. Expanding e-commerce and capitalizing on growing outdoor recreation trends present opportunities.

Data Sources:

• Company Filings, Industry Reports, Analyst Estimates

Disclaimers:

The information provided is for informational purposes only and does not constitute financial advice. Market share data is approximate and may vary depending on the source.