Sportsman’s Warehouse Holdings Inc (NASDAQ: SPWH) stock surged 39.60% on 22nd, 2020 (Source: Google finance) after the company agreed to be bought by Great American Outdoors Group. The parent company of Cabela’s will pay $18 in cash per share of Sportsman’s Warehouse, above the stock’s Monday closing price of $12.65 per share. The strategic decision took place for this partnership is the two companies’ similar histories and highly complementary business philosophies and geographic footprints. Both the companies share a passion with their customers for fishing, camping, hunting, boating and other outdoor activities. Both are highly acclaimed retailers with well-deserved reputations for a broad offering of outstanding brand name and proprietary products, superior customer service, deeply knowledgeable team members and an unwavering passion for conservation. Uniting both the companies represents an unprecedented “win-win” opportunity for outdoor enthusiasts.
Moreover, SPWH will get access to the world’s largest selection of premium fishing tackle including legendary Bass Pro Shops and other premier brands. The company will be able to offer customers the world’s leading boat brands, side-by-sides and ATVs at money-saving prices. The company’s great family of brands, Tracker, Nitro, Ranger, Ascend Kayaks and other products, are all built right here in the USA by American craftsmen and sold directly to customers through our stores and a select group of dealers, effectively giving customers the opportunity to buy factory-direct at money-saving prices. SPWH’s customers will enjoy The Great American Outdoors Group “Low Price Guarantee” which offers the lowest everyday price on its full assortment, and will match or beat any qualified competing offers in store or online. The customers will also continue to enjoy localized merchandise and efforts like area weather conditions, hunting and fishing reports, photo braggin’ boards and the opportunity to get “hands-on” with products alongside the guidance of local experts.
Meanwhile, for the fourth quarter of fiscal year 2020, the company expects net sales to be in the range of $356 million to $386 million based on same store sales growth in the range of 32% to 42% compared to the corresponding period of fiscal year 2019. Adjusted diluted earnings per share is expected to be in the range of $0.39 to $0.45 for Q4 2020.
For fiscal year 2020, net sales are expected to be in the range of $1,370 million to $1,400 million based on same store sales growth in the range of 42% to 46% compared to fiscal year 2019. Adjusted earnings per diluted share is expected to be in the range of $1.87 to $1.93 for FY 20.