Sportsman's Warehouse Sees FY24 Revenue $1.15B-$1.23B Vs $1.29B Est.; Says During Q4 We Used Our Excess Cash Flow To Reduce Our Line Of Credit By $59.4M
Portfolio Pulse from Benzinga Newsdesk
Sportsman's Warehouse (SPWH) projects FY24 revenue to be between $1.15B-$1.23B, below the estimated $1.29B. The company aims for adjusted EBITDA of $45M-$65M and plans $20M-$25M in capital expenditures, mainly on technology for merchandising and store productivity. No new stores are expected to open. SPWH reduced its line of credit by $59.4M in Q4, focusing on inventory and cost management to lower bank borrowings and interest expenses.
April 03, 2024 | 8:07 pm
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Sportsman's Warehouse expects FY24 revenue below estimates, plans significant EBITDA, and reduced its line of credit by $59.4M.
The projected revenue for FY24 being below the estimated figures suggests a potential negative impact on investor sentiment and stock price in the short term. However, the company's focus on EBITDA growth and reduction in debt could mitigate some negative perceptions. The lack of new store openings indicates a cautious approach to expansion, possibly reflecting on the company's strategy to improve financial health.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100