The motivation for Americans to spend more time outdoors and enjoy sports like fishing, helped Sportsman's Warehouse's to record a 41.8% surge in first quarter revenue.
Jon Barker, the CEO, said: "We introduced many new customers to our brand during Q1 and we believe this bodes well for our long-term growth. We are excited with our results and could not be more proud of the Sportsman’s Warehouse team as we navigated both a global pandemic and surging demand in our business.
"We were fortunate to be able to safely keep the majority of our stores open for business and also serve customers through our e-commerce platform.
"During the first quarter, same-store sales were up 28.6% compared to the same period last year, led by a surge in demand for firearms and ammunition.
"We believe the COVID-19 situation is impacting customer behaviour and motivating people to spend more time outdoors. Our products fit exceptionally well into an environment in which customers are spending time fishing, camping, biking, hiking and hunting."
He added that because of the significant uncertainty and variability in the current economic climate the company will not be providing forward guidance. "We will continue to be financially disciplined as we limit discretionary expenses, pay down debt and preserve our liquidity to effectively navigate these uncertain times.
"In the long-term, we believe we are uniquely positioned to capitalise on..Continue Reading
One of America’s ‘big three’ credit rating agencies has lowered its debt rating of Pure Fishing in light of the weak economic and retail outlook in 2020.
New York agency, Standard & Poors (S&P), has adjusted the multi-brand company’s rating down from B- to CCC+ because it believes the difficult trading environment may cause the company’s lease-adjusted debt to EBITDA to be above 10x before improving in 2021.
The rating agency’s recovery rating on the secured debt remains a ‘3’ but its rounded estimate of recovery has been lowered to 50% from 65%.
S&P said in a statement, “The downgrade of Pure Fishing to ‘CCC+’ reflects our expectation that leverage could be very high at about 10x through 2021 and that the company will likely generate negative operating cash flow in 2020.
“Our base case assumption incorporates a revenue decline in the company’s typically strong second quarter of 2020 in the mid-20% area, followed by flat year-over-year revenue in the third and fourth quarters of 2020 compared with 2019.
“We believe that, in line with many other manufacturers and companies affected by the COVID-19 pandemic, Pure Fishing has reduced its growth capital expenditure (CAPEX), furloughed and laid off employees, and materially reduced its cost structure in order to reduce the impact of lower revenue on EBITDA generation.
“Depending upon the success of the company’s existing cost improvement plan, we..Continue Reading
Dick's Sporting Goods, one of North America's leading suppliers of fishing tackle, saw its net sales slide as many of its stores were forced to close due to the COVID-19 pandemic.
However, Edward W. Stack, its Chairman and CEO, said that its strong liquidity position, with cash and cash equivalents of approximately $1.5 billion, and the nature of the business, puts it in a strong position to quickly return to growth.
The group reported a net sales decrease of 30.6% to approximately $1.33 billion and a consolidated same store sales fall of 29.5%, driven by store closures that started on March 15
Stack told investors: "Although the business environment of 2020 remains uncertain, Dick's Sporting Goods is in a position of strength. We believe coming out of the current crisis, health fitness will become more important to the consumer. As a leader in the sporting goods sector, our relationships with key brands has never been stronger and we are in a great place to support this demand.
"Our experienced management team has a history of successfully navigating difficult market cycles and remains fully committed to managing our business with a long-term view. Perhaps, most importantly, the balance sheet is strong and due to the actions taken when the pandemic first hit, we have enhanced liquidity to emerge from this crisis in an even stronger competitive position.
"Now, with confidence in our liquidity..Continue Reading
One of Canada's leading suppliers of fishing tackle has filed for bankruptcy in a bid to restructure the business.
Sail Outdoors, which has 14 branded stores and four Sportium outlets, said in a statement that it filed for protection under the Bankruptcy and Insolvency Act as part of its plan to get the business back on track.
CEO, Norman Decarie, says store closures and other consequences of the COVID-19 pandemic has put more pressure on the company's cashflow.
He added that the situation forced Sail to make 'major' decisions to ensure the company's sustainability. The filing will allow it to get support while it implements a plan aimed at restoring its financial health and better responding to the retail environment.
Sail employs nearly 1,800 people and its stores are currently open in accordance with public health guidelines... Continue Reading
Hooks from an award-winning Chinese manufacturer are now available in the United Kingdom and Ireland.
The fast-growing brand, BKK, has signed an agreement with Tronixfishing, an English-based wholesaler and distributor of fishing tackle, as part of its ambitious plans for worldwide expansion.
“TronixFishing is a leading supplier across the UK and Ireland, which is known for its premium quality and innovative sea fishing tackle and lures,” said a spokesman for BKK. “Its enthusiasm for the BKK brand was one of the driving factors that led us to partner with Tronixfishing. This relationship will help to develop a solid presence in the region with products that cater for the needs of both fresh and saltwater anglers.”
BKK already boasts a strong international presence with sales in Australia, Asia and New Zealand. It is also developing a strong base in Europe with distribution in countries that include Italy, France, Spain, Scandinavia, Poland and Greece.
Mike Thrussell Jr, Marketing Manager at TronixFishing, said: “Several BKK products will be of great interest to UK and Irish anglers, including the extensive range of treble, single and assist hooks for those lure fishing in fresh and saltwater.
“While the current range is extensive, there are many techniques that BKK does not cover but is planning to do so in the future, including those for carp, feeder and pole fishing. BKK recognises that the UK and Irish market..Continue Reading
Angling Direct, the largest tackle retailer in the UK, today reported a gross profit of £16.6m against record group sales of £53.2 million for the 12 months ended January 31st, 2020. Loss before income tax benefit is £1.5m.
Gross profit and sales are up by 20% and 27% respectively on the previous year.
Online sales of £25.3m are up by 14% and international sales by 8%. Store sales of £27.9m grew by 42%, with like-for-like store growth of 12%.
EBITDA loss is £0.5m, against a full year profit of £0.3m the previous year, as a result of adverse post-Christmas trading due to exceptional flooding, wider margin pressure and a more prudent approach to legacy costs, says the company.
Operational highlights included:
• Store network increased by ten to 34 at the year-end, which included seven new stores and three acquisitions;
• Continued investment in online marketing, including the native language websites developed and launched in France and Netherlands to complement first full year of German website;
• Further operational efficiencies driven from Kardex logistics system in the distribution centre;
• Decision made in H2 to cease lower margin exports;
• Further investment made in own-brand Advanta to support margin growth.
“Our revenue growth during the financial year ended 31st January 2020 has been both organic and acquisitive through the addition of new..Continue Reading
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