Sportsman's Warehouse Holdings, Inc. operates as an outdoor sporting goods retailer. The company focuses on meeting the everyday needs of the seasoned outdoor veteran, the first-time participant, and everyone in between.
The company has the largest outdoor specialty store base in the Western United States and Alaska. The company’s stores range from 7,500 to 75,000 gross square feet, with an average size of approximately 37,000 gross square feet. The company’s store layout is adaptable to both s...
Sportsman's Warehouse Holdings, Inc. operates as an outdoor sporting goods retailer. The company focuses on meeting the everyday needs of the seasoned outdoor veteran, the first-time participant, and everyone in between.
The company has the largest outdoor specialty store base in the Western United States and Alaska. The company’s stores range from 7,500 to 75,000 gross square feet, with an average size of approximately 37,000 gross square feet. The company’s store layout is adaptable to both standalone locations and strip centers. The company also has the largest assortment and offering of firearms available online for in-store purchase and buy-online-pickup-in-store.
Growth Strategy
The company is pursuing a number of strategies designed to continue its growth and strong financial performance. The key elements of the company’s strategy include leveraging its omni-channel presence and increasing its same store sales growth; growing the sportsman’s warehouse brands; growing its loyalty and credit card programs; expanding its store base; and using strategic acquisitions as an additional source of growth.
Distribution and Fulfillment
The company distributes all of its merchandise from its 507,000 square foot distribution center in Salt Lake City, Utah. The company’s distribution center is sufficient to meet its needs for at least the next two years. The distribution center supports replenishment for all stores. The company uses preferred carriers for replenishment to its retail stores. The majority of the company’s direct-to-consumer e-commerce orders are fulfilled by its retail stores with additional orders fulfilled by its distribution center. The company ships merchandise to its e-commerce customers via small parcel delivery.
The company uses Warehouse Management System (WMS) technology from Korber, to manage all activities. The system is highly adaptable and can be easily changed to accommodate new business requirements. For example, the company’s WMS enabled it to support full omni-channel distribution under one roof by allowing it to comingle inventory to optimize space requirements and labor. Additionally, the company has developed customized radio frequency and voice-directed processes to handle the specific requirements of its operations. The company has the capability to both case pick and item pick, which is designed to ensure that its stores have sufficient quantities of product while also allowing it to maintain appropriate in-stock levels.
Marketing and Advertising
The majority of the company’s customers are male, between the ages of 35 and 65, and have an annual household income between $40,000 and $100,000. The company also actively markets to women and have expanded its product offerings of women’s and children’s outerwear, apparel and footwear to address rising participation rates in hunting and shooting sports, as well as overall outdoor activity.
The company’s primary marketing efforts are focused on driving additional consumers to the stores and increasing the frequency and profitability of visits by customers of all types. The company employs a two-pronged marketing approach, such as regional and national advertising programs; and local grassroots efforts to build brand awareness and customer loyalty.
The company’s regional and national advertising programs emphasize seasonal requirements for hunting, fishing and camping in its various store geographies. The company’s advertising medium is typically digital advertising and newspaper inserts (primarily multi-page color inserts during key shopping periods, such as the Christmas season and Father’s Day) supplemented with modest amounts of email, radio and national television ads. The company proactively modifies the timing and content of its message to match local and regional preferences, changing seasons, weather patterns and topography of a given region. Additionally, the company sponsors several regional television and radio programs.
The second prong of the company’s marketing effort involves fostering grassroots relationships in the local community. Each Sportsman’s Warehouse store employs a variety of outreach tools to build local awareness. One key component to the company’s local marketing strategy is hosting events throughout the year, targeting a variety of end-user customer profiles (such as hunters, campers, anglers and women). Our store base hosts or facilitates thousands of in-store and offsite seminars and events per year, such as ladies’ night, Waterfowl Weekend, Maintain the Terrain, and loyalty member events. The company is supporting a variety of conservation groups, such as Ducks Unlimited, Rocky Mountain Elk Foundation, Mule Deer Foundation and the National Wild Turkey Federation, both at the corporate level and through store employee local memberships and participation. Company representatives attend more than 600 events annually to provide support for these organizations and to solidify ties between their members and the Sportsman’s Warehouse brand.
Stores
The company operated stores across 32 states as of February 3, 2024. Most of the company’s stores are located in power, neighborhood and lifestyle centers. Power centers are large, unenclosed shopping centers that are usually anchored by three or more national supercenters, such as Target, Walmart and Costco. Neighborhood centers are shopping centers anchored by a supermarket or drugstore that provide convenience goods and services to a neighborhood. Lifestyle centers are shopping centers that combine the traditional functions of a shopping mall with leisure amenities such as pedestrian friendly areas, open air seating and inviting meeting spaces. The company also operates several single-unit, stand-alone locations. The company’s stores average approximately 37,000 gross square feet.
Intellectual Property
Sportsman’s Warehouse, Sportsman’s Warehouse America’s Premier Outfitter, Lost Creek, LC Lost Creek Fishing Gear and Accessories, Rustic Ridge, Killik, K Killik & Design, LC & Design, Vital Impact, and The American Parts Company - TAPCO are among its service marks or trademarks registered with the United States Patent and Trademark Office. In addition, the comopany owns several other registered and unregistered trademarks and service marks involving advertising slogans and other names and phrases used in its business. The company also owns numerous domain names, including www.sportsmans.com, among others.
Markets
Within the retail sporting goods sector, the company operates primarily in the outdoor equipment, apparel and footwear segment, which includes hunting and shooting, fishing, camping, hiking, and boating.
Seasonality
The company experiences moderate seasonal fluctuations in its net sales and operating results as a result of holiday spending and the opening of hunting seasons. While its sales are more balanced throughout the year compared to many retailers, historically, the company’s sales are moderately higher in the third and fourth fiscal quarters (yea ended February 3, 2024) than in the other quarterly periods. On average, over the last three fiscal years, the company has generated approximately 26.3% and 27.8% of its net sales in the third and fourth fiscal quarters, respectively, which includes the holiday selling season as well as the opening of the Fall hunting season. However, Spring hunting, Father’s Day and the availability of hunting and fishing throughout the year in many of its markets counterbalance this seasonality to a certain degree.
Regulation and Compliance
Because the company sells firearms at all of its retail stores, it is subject to regulation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (the ATF). Each store has an FFL permitting the sale of firearms, and the company’s distribution center has obtained an FFL to store and distribute firearms.
The company must comply with federal, state and local laws and regulations, including the National Firearms Act of 1934 (the NFA), the Gun Control Act of 1968 (the GCA), the Arms Export Control Act of 1976 and Internal Revenue Code provisions applicable to the Firearms and Ammunition Excise Tax, all of which have been amended from time to time. The NFA and GCA require the company’s business to, among other things, maintain Federal Firearms Licenses (FFLs) for its locations and perform a pre-transfer background check in connection with firearms purchases. The company performs this background check using either the FBI-managed National Instant Criminal Background Check System (NICS), or a comparable state government-managed system that relies on NICS and any additional information collected by the state.
The company’s e-commerce business is subject to the Mail or Telephone Order Merchandise Rule and related regulations promulgated by the Federal Trade Commission (FTC), which affect its catalog mail order operations. FTC regulations, in general, govern the solicitation of orders, the information provided to prospective customers and the timeliness of shipments and refunds. In addition, the FTC has established guidelines for advertising and labeling many of the products the company sells.
Compliance
The company is routinely inspected by the ATF and various state agencies to ensure compliance with federal and local regulations. The company has particular expertise in the California market and has passed several California Department of Justice (CA DOJ) firearm audits with zero or only minor violations. The CA DOJ communicates with the company for policy discussion, recognizing the strength of its compliance infrastructure.
History
Sportsman's Warehouse Holdings, Inc. was founded in 1986. The company was incorporated in 2013.
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