The firearms community appreciates loyalty, and they’ve shown that appreciation at Sportsman’s Warehouse stores across the country.
Chief Executive Officer John Barker told investors Thursday that gun sales jumped 8.3 percent in the second quarter, helping boost overall semiannual sales to $383.3 million, a double-digit increase over 2017.
“Our continued outperformance of the industry and market share gains are attributed to our continued investments in assortment expansion, online capabilities and expertise for varying subcategories and all user types as we continue to capitalize on market share opportunities,” Barker said Thursday.
“Market share opportunities” likely alludes to the recent decision by Dick’s Sporting Goods to halt the sale of AR-15s and 30-round magazines and to stop selling firearms to anyone under age 21. Sportsman’s Warehouse has seen a marked uptick in gun sales since Dick’s CEO Edward Stack made his announcement, despite a slowdown in firearms sales across the country.
“There is clearly a combination of pull forward that happened in quarter one and market share gains,” Kevan Talbot, the retailer’s chief financial officer, told investors in May. “We can see it in specific regions where we compete against some of the competitors who have made changes. We’re hearing it from our customers on a daily basis.”
Strong firearm sales were enough to buoy the company’s overall sales this quarter. Even though non-hunting categories dropped 0.01%, net sales for the second quarter of fiscal year 2018 increased 6.2% to $203.3 million from $191.5 million in the second quarter of 2017.
At that time, the company blamed “softness in firearm demand” for disappointing sales numbers. Yesterday, they attributed their strong second quarter to gun buyers.
“We are picking up market share as we continue to focus on doing what we do correct,” Talbot noted. “And obviously, our competitors have made certain decisions that are impacting that. But our customers have realized that we continue to do it very well, as far as the sale of firearms, moving forward. And I think that’s a testament to one of our strengths.”
Barker said in March he has no plans to change the company’s pro-2A policy, and thus far he’s been true to his word.
“As far as a Sportsman’s Warehouse changing their policies around regulated materials, we are continuing to monitor the situation and have ongoing conversations to make sure we understand what’s happening in the political arena and regulation,” Barker said. “But we continue to support the lawful sale of firearms under the Second Amendment rights of our customer and at this point we have no intent or plan to change the way that we approach that.”