Sportsman's Warehouse Holdings Inc (SPWH) 2023 Q1 法說會逐字稿

Greetings, and welcome to Sportsman's Warehouse First Quarter 2023 Earnings Call.

您好，歡迎參加 Sportsman's Warehouse 2023 年第一季度收益電話會議。

(Operator Instructions) As a reminder, this conference is being recorded.

（操作員指示）謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce your host, Riley Timmer, Vice President of Investor Relations and Corporate Development. Thank you. You may begin.

現在我很高興向您介紹主持人，投資者關係和企業發展副總裁 Riley Timmer。謝謝。你可以開始了。

Thank you, operator. Participating with me on the call today is Joe Schneider, our Interim CEO and Chair of the Board; and Jeff White, our Chief Financial Officer. I will now remind everyone of the company's safe harbor language.

謝謝你，接線員。今天與我一起參加電話會議的是我們的臨時首席執行官兼董事會主席 Joe Schneider；和我們的首席財務官傑夫懷特。我現在提醒大家注意公司的安全港語言。

The statements we make today contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which includes statements regarding expectations about our future results of operations, demand for our products and growth of our industry. Actual results may differ materially from those suggested in such statements due to a number of risks and uncertainties, including those described in the company's most recent Form 10-K and the company's other filings made with the SEC.

我們今天發表的聲明包含 1995 年《私人證券訴訟改革法案》含義內的前瞻性聲明，其中包括有關我們未來經營業績、產品需求和行業增長的預期的聲明。由於存在許多風險和不確定性，包括公司最新的 10-K 表格和公司向 SEC 提交的其他文件中描述的風險和不確定性，實際結果可能與此類聲明中建議的結果存在重大差異。

We will also disclose non-GAAP financial measures during today's call. Definitions of such non-GAAP measures as well as reconciliations to the most directly GAAP financial measures are provided as supplemental financial information in our press release included as Exhibit 991 to the Form 8-K we furnished to the SEC today, which is also available on the Investor Relations section of our website at sportsmans.com.

我們還將在今天的電話會議上披露非公認會計準則財務指標。此類非 GAAP 指標的定義以及最直接的 GAAP 財務指標的調節在我們的新聞稿中作為補充財務信息提供，包括我們今天向 SEC 提供的表格 8-K 的附件 991，該表格也可在我們網站 sportsmans.com 的投資者關係部分。

I will now turn the call over to Joe.

我現在將把電話轉給喬。

Thank you, Riley, and good afternoon, everyone. As a member of the Sportsman's Warehouse Board of Directors for 9 years now, I have been deeply involved in the oversight of the company's strategy and execution. And now as Interim CEO, I have gained additional insights into the day-to-day operations of the business over the last several weeks. These additional insights will benefit me as the Chairman and the rest of the Board together in the long term. And with those insights, I'm even more confident that we have a clear path to achieving our strategic objectives that we have previously outlined for 2023.

謝謝你，萊利，大家下午好。作為 Sportsman's Warehouse 董事會成員已有 9 年了，我一直深入參與公司戰略和執行的監督。現在，作為臨時首席執行官，我在過去幾週內對公司的日常運營有了更多的了解。從長遠來看，這些額外的見解將使我作為董事長和董事會其他成員受益。有了這些見解，我更加相信我們有一條明確的道路來實現我們之前為 2023 年制定的戰略目標。

Those key strategies are growing our store footprint, further developing our omnichannel capabilities and growing sales from sportsmans.com, leveraging our customer databases and engaging our customers. The leadership team at Sportsman's are talented individuals with extensive experience in their respective areas of expertise. This allows them to execute at the highest level to further the success of the business. As I've gotten involved in the day-to-day of the business, it's been exciting to work with each and every one of them personally as we carefully navigate the current environment and execute on our key initiatives for the year.

這些關鍵戰略是擴大我們的商店規模、進一步發展我們的全渠道能力、增加 sportsmans.com 的銷售額、利用我們的客戶數據庫並吸引我們的客戶。 Sportsman's 的領導團隊都是才華橫溢的人，在各自的專業領域擁有豐富的經驗。這使他們能夠以最高水平執行，以進一步推動業務的成功。當我參與日常業務時，當我們仔細應對當前環境並執行今年的關鍵舉措時，與他們每一個人一起工作是令人興奮的。

While we have been faced with weather-related short-term headwinds and tough macroeconomic conditions, which Jeff will address in a few moments, the underlying foundation of the business remains strong. Our real estate funnel is strong with 15 planned new stores opening this year. We have a robust omnichannel platform, allowing us to leverage our inventory and provide excellent service to our customers. Our industry-leading assortment and in-store expertise gives us confidence in our competitive position within our hunting, shooting sports department as well as the other key categories we offer outdoor enthusiasts. We stand firmly committed to our right to win as a consumer's first choice for their outdoor needs.

儘管我們面臨著與天氣相關的短期逆風和嚴峻的宏觀經濟狀況（傑夫將在稍後討論這些問題），但業務的基礎仍然強勁。我們的房地產渠道十分強大，今年計劃開設 15 家新店。我們擁有強大的全渠道平台，使我們能夠利用我們的庫存並為客戶提供優質的服務。我們行業領先的品種和店內專業知識讓我們對自己在狩獵、射擊運動部門以及我們為戶外愛好者提供的其他關鍵類別中的競爭地位充滿信心。我們堅定地致力於成為消費者戶外需求的首選。

Finally, before I turn the call over to Jeff, I want to reiterate both my and the Board's focus on finding a permanent long-term CEO to lead Sportsman's Warehouse. We are working expeditiously but prudently to find the right person with deep retail and omnichannel experience, a passion for the outdoors and a proven ability to return value to our shareholders.

最後，在我把電話轉給 Jeff 之前，我想重申我和董事會的重點是尋找一位長期的首席執行官來領導 Sportsman's Warehouse。我們正在迅速而謹慎地尋找合適的人選，他們擁有深厚的零售和全渠道經驗、對戶外活動的熱情以及被證明有能力為股東回報價值的能力。

EgonZehnder has helped the Board create a strong pipeline of qualified candidates, and we are energized by the enthusiasm for leading this company that we hear from many of the candidates we have spoken to.

億康先達幫助董事會建立了強大的合格候選人渠道，我們從許多與我們交談過的候選人那裡聽到了領導這家公司的熱情，這讓我們深受鼓舞。

I'll now turn the call over to Jeff to go through the first quarter's results and discuss our view on the second quarter.

現在我將把電話轉給傑夫，讓他查看第一季度的業績並討論我們對第二季度的看法。

Thank you, Joe, and good afternoon, everyone. Over the past 3 years, our business has grown tremendously, nearly doubling in size. We knew that eventually the business would begin to normalize, and we have been experiencing a moderation of demand over the last few quarters. Much of this, we believe, has been due to significant inflation and its impact on our consumer. Our sales in the first quarter were also impacted by the unfavorable weather conditions in the Western United States as record levels of rain and snow pressured the spring camping and fishing seasons, causing demand for products in those categories to be softer than expected.

謝謝喬，大家下午好。在過去的三年裡，我們的業務增長迅猛，規模幾乎翻了一番。我們知道業務最終將開始正常化，並且在過去幾個季度中我們的需求一直在放緩。我們認為，這很大程度上是由於嚴重的通貨膨脹及其對消費者的影響。我們第一季度的銷售還受到美國西部不利天氣條件的影響，創紀錄的雨雪水平給春季露營和捕魚季節帶來壓力，導致這些類別產品的需求低於預期。

If we look beyond weather, the business continues to experience pressure from the difficult macroeconomic conditions, and we are not seeing the increase in store traffic we had expected with softness throughout our spring-related merchandising categories. Because of these trends, we are closely managing our spring assortment and merchandising efforts while making the necessary adjustments to ensure our inventories stay seasonally relevant and our in-stocks for turning merchandise remain healthy.

如果我們不考慮天氣因素，我們的業務將繼續面臨困難的宏觀經濟條件帶來的壓力，而且我們並沒有看到我們預期的商店客流量增加，整個春季相關商品類別都表現疲軟。由於這些趨勢，我們正在密切管理我們的春季品種和銷售工作，同時進行必要的調整，以確保我們的庫存保持季節性相關性，並且我們的商品庫存保持健康。

During Q1, our hunting department outperformed most of our other categories, driven by strong firearm sales during the quarter. Our industry-leading firearms assortment, coupled with best-in-class omnichannel capabilities, allowed us to better service our customers and win at the point of sale. Within the hunting department, we did see reduced ammunition sales and lower margins on ammunition compared with last year. We expected the comps would be tough during Q1 2023 as we lap the industry returning to an in-stock position in Q1 2022, driving customers to pull forward purchases.

在第一季度，由於該季度槍支銷售強勁，我們的狩獵部門的表現優於大多數其他類別。我們行業領先的槍支品種，加上一流的全渠道能力，使我們能夠更好地服務客戶並在銷售點獲勝。在狩獵部門，與去年相比，我們確實看到彈藥銷量減少，彈藥利潤率下降。我們預計 2023 年第一季度的競爭將會很艱難，因為我們預計該行業將在 2022 年第一季度恢復到庫存狀態，從而推動客戶提前購買。

During the quarter, the team continued their execution on organic growth and opened 5 new stores as we continue to expand our store footprint. We have 6 stores slated to grand open in the second quarter and 4 stores on track to open early in the third quarter as we enter the hunting and the holiday seasons. It's critical that we continue to stay diverse and flexible in our approach but disciplined in our financial hurdles of 10% four-wall EBITDA and 20% ROIC as we navigate through the macroeconomic pressures we are seeing in the business.

本季度，團隊繼續執行有機增長，並隨著我們繼續擴大門店覆蓋範圍，開設了 5 家新店。隨著狩獵季節和假日季節的到來，我們有 6 家商店計劃在第二季度盛大開業，還有 4 家商店有望在第三季度初開業。至關重要的是，我們在應對業務中面臨的宏觀經濟壓力時，必須繼續保持多元化和靈活的方法，但要嚴格遵守 10% 的四壁 EBITDA 和 20% ROIC 的財務障礙。

As the primary vehicle for deploying capital, new store openings have proven to be a strong way to generate positive return by generating over 110% ROIC over the last 5 years when compared to the total capital invested. These returns are achieved through our new stores reaching profitability on average in 5 to 6 months, even with including the pre- and grand opening costs associated with that store. We continue to believe in new store growth due to the considerable white space opportunities driven by increased firearm ownership, outdoor participation and a reduction in the competitive landscape.

作為配置資本的主要工具，新店開業已被證明是產生正回報的有力方式，與總投資資本相比，過去 5 年的投資回報率超過 110%。這些回報是通過我們的新店平均在 5 至 6 個月內實現盈利而實現的，即使包括與該店相關的開業前和開業成本。我們仍然相信新店的增長，因為槍支擁有量的增加、戶外活動的參與和競爭格局的減少帶來了相當大的空白空間機會。

We also continue to invest in our omnichannel platform, adding incremental functionalities as a way to drive additional sales through reaching new consumers outside our geographic area and making the experience for customers as seamless as possible. This allows us to leverage our fleet-wide inventory and increase assortment through introduction of new relevant products to our website. We will continue to use enhanced digital marketing efforts to reach new customers and entice existing customers to shop our website. The website now penetrates in the mid- to high teens and is one part of the business that is comping positive year-over-year on both a quarterly and annual basis.

我們還繼續投資於我們的全渠道平台，增加增量功能，通過接觸我們地理區域之外的新消費者來推動額外銷售，並為客戶提供盡可能無縫的體驗。這使我們能夠利用我們整個機隊的庫存，並通過在我們的網站上引入新的相關產品來增加品種。我們將繼續利用增強的數字營銷努力來吸引新客戶並吸引現有客戶在我們的網站上購物。該網站目前的滲透率已達到中高端，並且是季度和年度業績同比都呈正增長的業務的一部分。

Turning now to our Q1 results. Our first quarter results were in line with our guidance range for both sales and earnings per share. We achieved net sales of $267.5 million compared to $309.5 million in Q1 of 2022. The decrease was primarily driven by the unusually wet weather and extended winter in the Western United States and lower overall sales demand from consumer inflationary pressures. These declines were partially offset by the opening of 11 new stores over the last year. Same-store sales decreased 17.8% in the quarter compared with the same quarter of fiscal year 2022.

現在轉向我們的第一季度業績。我們第一季度的業績符合我們的銷售額和每股收益指導範圍。我們的淨銷售額為 2.675 億美元，而 2022 年第一季度為 3.095 億美元。這一下降主要是由於美國西部異常潮濕的天氣和漫長的冬季以及消費者通脹壓力導致的整體銷售需求下降。去年新開的 11 家門店部分抵消了這些下降。該季度同店銷售額較 2022 財年同季度下降 17.8%。

Gross margin was 29.9% for the quarter, a decrease of 210 basis points versus the prior year first quarter period. The decrease in gross margins was primarily due to a reduction in sales mix in our camping and fishing departments, which carry a higher margin profile and lower comparable product margins, mainly in ammunition. Selling, general and administrative expenses in the first quarter were $99 million compared to $96.1 million in Q1 of 2022. As a percentage of net sales, SG&A expense increased to 37% compared to 31% in the first quarter of the prior year. This increase was primarily due to higher rent, depreciation and preopening expenses from the addition of 11 new stores opened over the last year.

本季度毛利率為 29.9%，較去年第一季度下降 210 個基點。毛利率下降主要是由於我們的露營和釣魚部門的銷售組合減少，這些部門的利潤率較高，而可比產品利潤率較低，主要是彈藥。第一季度的銷售、一般和管理費用為 9900 萬美元，而 2022 年第一季度為 9610 萬美元。作為淨銷售額的百分比，SG&A 費用增加至 37%，而上一年第一季度為 31%。這一增長主要是由於去年新增 11 家新店導致租金、折舊和開業前費用增加。

Looking now at earnings per share. We reported a $0.39 per share loss in the quarter. And adding some additional color to this loss, I want to highlight some significant drivers. First, the reduction in sales due to weather and lower penetration in our camp and fish departments contributed $0.18 to this reduction of EPS. Next, the expense burden of new store openings reduced EPS by an additional $0.03 per share during the quarter on a year-over-year basis. And finally, the increase in our interest expense reduced EPS by $0.04 on a year-over-year basis.

現在看看每股收益。我們報告本季度每股虧損 0.39 美元。為了給這種損失增添一些額外的色彩，我想強調一些重要的驅動因素。首先，由於天氣原因導致的銷售額減少以及我們的營地和魚類部門滲透率較低導致 EPS 減少 0.18 美元。其次，新店開業的費用負擔使本季度每股 EPS 與去年同期相比額外減少了 0.03 美元。最後，利息支出的增加使 EPS 同比減少了 0.04 美元。

I will now take a minute and review our balance sheet and liquidity. First quarter ending inventory was $469.5 million. We expect this to be the high point for inventory for the year as this includes most of the buildup needed for the balance of our new stores to be opened this year and much of the seasonal products for the summer and early fall selling season. Although we will be adding 15 new stores during 2023, we expect year-end inventory to be approximately $400 million as we improve our terms and gain efficiency with better regional and seasonal assortments. This equates to a per store reduction of inventory of approximately 10%. Our liquidity continues to be a strength as we ended Q1 with $150.3 million on our line of credit. Our total liquidity, including cash on hand, at the end of Q1 was $153.5 million.

我現在將花一點時間回顧一下我們的資產負債表和流動性。第一季度期末庫存為 4.695 億美元。我們預計這將是今年庫存的最高點，因為這包括今年開設新店所需的大部分庫存以及夏季和初秋銷售季節的大部分季節性產品。儘管我們將在 2023 年增加 15 家新店，但隨著我們改善條款並通過更好的區域和季節性品種提高效率，我們預計年終庫存將約為 4 億美元。這相當於每家商店的庫存減少約 10%。截至第一季度末，我們的信用額度為 1.503 億美元，流動性仍然是我們的優勢。截至第一季度末，我們的總流動資金（包括手頭現金）為 1.535 億美元。

Turning now to our view on the second quarter. Starting with our net sales outlook. We estimate second order net sales to be in the range of $310 million to $340 million. Same-store sales in the second quarter of 2023 are anticipated to be in the range of down 17% to down 9%. This guidance takes into consideration a 3% to 4% same-store sales headwind versus Q2 of last year, driven by the political rhetoric due to the unfortunate event in Uvalde. EPS for the second quarter of 2023 is expected to be in the range of $0.02 to $0.15.

現在談談我們對第二季度的看法。從我們的淨銷售前景開始。我們估計二階淨銷售額將在 3.1 億美元至 3.4 億美元之間。預計 2023 年第二季度同店銷售額將下降 17% 至 9%。該指引考慮到同店銷售較去年第二季度下降 3% 至 4%，這是由尤瓦爾迪不幸事件引發的政治言論推動的。 2023 年第二季度的每股收益預計在 0.02 美元至 0.15 美元之間。

Finally, to add some color to our Q2 outlook. Over the last year, we started reducing our costs in many of our stores, particularly focused on store labor. This effort resulted in a year-over-year cost reduction of 6% on a per store basis. Unfortunately, we continue to see pressures on the business from the macroeconomic environment and a demand slowdown in our camping and fishing categories, reducing the amount of traffic to our stores. In response to this continued softening, during the second quarter, we will further implement a company-wide cost reduction effort to align our expenses with the current sales trends. It is critical that we maintain financial discipline and rigor as we navigate the current consumer headwinds.

最後，為我們的第二季度前景增添一些色彩。去年，我們開始降低許多商店的成本，特別是商店勞動力的成本。這一努力使每家商店的成本同比降低了 6%。不幸的是，我們繼續看到宏觀經濟環境給我們的業務帶來壓力，以及露營和釣魚類別的需求放緩，從而減少了我們商店的客流量。為了應對這種持續疲軟的情況，在第二季度，我們將進一步實施全公司範圍的成本削減工作，以使我們的支出與當前的銷售趨勢保持一致。在應對當前的消費者逆風時，保持財務紀律和嚴謹至關重要。

That concludes our prepared remarks today. I will now turn the call back to the operator to facilitate any questions.

我們今天準備好的發言到此結束。我現在將把電話轉回給接線員，以解答任何問題。

(Operator Instructions) Our first question comes from the line of Eric Wold with B. Riley.

（操作員說明）我們的第一個問題來自 Eric Wold 和 B. Riley 的線路。

A couple of questions. I guess, Jeff, you noted that firearm sales were a strong point in the quarter. Can you maybe talk about the tax rates you're seeing with those purchases, people coming in, they're buying a similar level of kind of accessories and ammo that they may have previously purchased, I knew that ammo sales are down, but in terms of people buying firearms at that time, you're seeing some level of attach rates. And then same kind of question along that line, as they kind of make their way through the store twice, once for the background check and once to pick up the firearm, are you seeing them kind of buy a similar level of other basket items as they make their way back? Or is that being impacted as well? And then I have a follow-up.

有幾個問題。傑夫，我想您注意到槍支銷售是本季度的一個亮點。您能否談談您在這些購買中看到的稅率，人們進來，他們正在購買他們以前可能購買過的類似水平的配件和彈藥，我知道彈藥銷量下降了，但在就當時購買槍支的人而言，您會看到一定程度的附加率。然後沿著這條線提出同樣的問題，因為他們兩次穿過商店，一次是為了背景調查，一次是為了拿起槍支，你是否看到他們購買了類似水平的其他籃子物品他們能回來嗎？或者說這也受到了影響？然後我有一個後續行動。

Yes, Eric, great question. In terms of firearm sales and the attachment of accessories onto the firearm, we're still seeing a very good attachment rate for items specifically relating to the firearm purchase. So a holster, a security product, ammunition to the extent that they need it to go use. Where we're seeing the customer back off from purchases is the attachment rate to other items within the store. So the consumers coming in, they're purchasing the firearm, they're approaching the associated accessory with that firearm, but then they are not shopping other areas of the store, such as camping, fishing, apparel, footwear, places like that where we used to see a higher attachment rate.

是的，埃里克，好問題。就槍支銷售和槍支附件而言，我們仍然看到與槍支購買相關的物品的附件率非常高。因此，皮套、安全產品、彈藥，只要他們需要就可以使用。我們看到顧客放棄購買的原因是對商店內其他商品的依戀率。因此，消費者進來時，他們正在購買槍支，他們正在接近與該槍支相關的配件，但他們不會購買商店的其他區域，例如露營、釣魚、服裝、鞋類等地方我們曾經看到更高的依戀率。

Got it. Okay. And then my second question, obviously, you noted the kind of the weather impact you saw in Q1 have kind of lingered into Q2. What does the guidance imply, the down 9% and down 17%? I mean are you -- have you seen any turn so far in those regions of demand coming back? Are you getting a sense that kind of pent-up demand is coming back in the stores? Do you think those sales may be lost? I'm trying to guess that wide range. Are you assuming that you start to see some turnaround? Are you assuming it continues? Or is it one end assuming no turnaround, the other end assuming the turnaround?

知道了。好的。然後我的第二個問題，顯然，您注意到您在第一季度看到的天氣影響在第二季度仍然存在。指導意見下降 9% 和下降 17% 意味著什麼？我的意思是，到目前為止，您是否看到這些需求領域出現任何回升？您是否感覺到商店裡被壓抑的需求又回來了？您認為這些銷售額可能會損失嗎？我正在嘗試猜測這麼大的範圍。您是否認為您開始看到一些轉變？你認為這種情況會持續下去嗎？或者是一端假設沒有轉機，另一端假設轉機？

Yes, that's a great question. In terms of the guidance, the guidance figures in that the pattern continues with our current business trend. We gave a large range on the guidance just because we have seen some areas start to turn in camping and fishing penetration, but not at the rate that we were hoping or expecting them to turn. And so with the guidance that we gave, we've kind of figured in the downside risk and then the upside opportunity if those trends start to change in the business, and we get further penetration into fishing and camping and other seasonal merchandise.

是的，這是一個很好的問題。就指導而言，指導數字表明該模式延續了我們當前的業務趨勢。我們在指導上給出了很大的範圍，只是因為我們看到一些地區的露營和釣魚滲透率開始轉變，但沒有達到我們希望或預期的轉變速度。因此，根據我們提供的指導，我們已經考慮到了下行風險，如果這些趨勢開始在業務中發生變化，我們就考慮到了上行機會，並且我們進一步滲透到釣魚、露營和其他季節性商品領域。

Just to clarify, the low end of the range is assuming current trends continue, the better end of the range is assuming that a proven -- or is there -- is the low end of the range assuming a further downturn from here?

需要澄清的是，該範圍的低端是假設當前趨勢繼續下去，該範圍的更好端是假設已證明（或是否存在）該範圍的低端假設從這裡進一步下滑？

I think the low end of the range assumes a further down trend from our current business patterns. The midpoint right now is in line with what we're seeing in current business trends.

我認為該範圍的低端呈現出與我們當前的業務模式相比進一步下降的趨勢。目前的中點與我們在當前業務趨勢中看到的情況一致。

Our next question comes from the line of Justin Kleber with Robert W. Baird.

我們的下一個問題來自賈斯汀·克萊伯 (Justin Kleber) 和羅伯特·W·貝爾德 (Robert W. Baird)。

Just a first follow-up there on firearms specifically, Jeff. Did that business comped positive in the first quarter or not?

傑夫，這只是關於槍支的第一次後續行動。該業務第一季度的盈利是否為正？

It did not comp positive, Justin, but it outperformed the rest of the company in terms of comps for the quarter.

賈斯汀，它的業績並不樂觀，但就本季度的業績而言，它的表現優於公司其他公司。

Got it. Okay. And then just maybe help us disentangle the gross margin in the first quarter a bit more. Can you frame the mix impact versus the headwind from lower margins in ammo? And then specifically on the ammo piece, I guess, where are we in the process of margins on ammunition normalizing? I know we were overearning on those categories during the pandemic, but where are we in that kind of mean reversion from a margin perspective, specifically within ammo?

知道了。好的。然後也許可以幫助我們進一步理清第一季度的毛利率。您能否將混合影響與彈藥利潤率較低的逆風進行比較？然後，特別是在彈藥方面，我想，我們在彈藥正常化過程中處於什麼位置？我知道我們在大流行期間在這些類別上獲得了超額收益，但從利潤角度來看，特別是在彈藥方面，我們在這種均值回歸中處於什麼位置？

Yes, that's a great question, Justin. So in terms of the gross margin for the quarter, if you look at the degradation year-over-year, I'm down about 200 basis points in totality. I will tell you that mix accounts for roughly half of that, and then the margin impact in the quarter equates to about the other half of that. So the big driver on the margin degradation is going to be in terms of ammunition. We knew eventually we are going to see some degradation in ammunition margin, but it was not going to stay at the levels that it was at during COVID. We are now seeing that in the market, but we're still seeing a margin that is much higher than what it was pre-COVID. So this is an expected change in the margin profile on ammunition, and that took a larger basis point decline in overall gross margin in Q1, just given softness in some of the other categories like fishing and camping, which tend to carry higher gross margins.

是的，這是一個很好的問題，賈斯汀。因此，就本季度的毛利率而言，如果你看看同比下降情況，我總共下降了約 200 個基點。我會告訴你，混合大約佔其中的一半，然後本季度的利潤率影響相當於另一半。因此，邊際退化的主要驅動因素將是彈藥。我們知道最終我們會看到彈藥餘量有所下降，但它不會保持在新冠疫情期間的水平。我們現在在市場上看到了這一點，但我們仍然看到利潤率遠高於新冠疫情之前的水平。因此，這是彈藥利潤率狀況的預期變化，並且考慮到釣魚和露營等毛利率較高的其他一些類別的疲軟，第一季度整體毛利率出現了更大的基點下降。

Yes. Okay. That makes sense. And just one follow-up kind of on margin. What is -- or can you help us just think about how -- or what you're embedding in your earnings guidance for 2Q from a gross margin rate perspective. Do we anticipate the year-over-year declines? Do they ease from what we've just seen in the first quarter? Did it get worse? Just any color there would be helpful.

是的。好的。這就說得通了。而且只有一種後續的保證金。什麼是——或者你能否幫助我們思考如何——或者從毛利率的角度將什麼嵌入到第二季度的盈利指導中。我們預計會同比下降嗎？他們是否比我們剛剛看到的第一季度的情況有所緩解？情況變得更糟了嗎？任何顏色都會有幫助。

Yes. In Q2, we're really looking at the penetration into some of the other categories. Back to Eric's question, the middle point of the guidance assumes that our current penetration trends in areas like camp and fish continue for the rest of the quarter. If we start to penetrate higher in those categories, those carry overall accretive margins to the overall gross margin. So we will see better profitability from a gross margin perspective. If the current trend continues, where we penetrate heavily into firearms, then we're going to see a continuation of some of the margin difficulties we saw in Q1.

是的。在第二季度，我們真正關注的是對其他一些類別的滲透。回到埃里克的問題，指南的中間點假設我們目前在營地和魚類等領域的滲透趨勢將在本季度剩餘時間內持續下去。如果我們開始在這些類別中滲透得更高，這些類別的整體利潤率就會上升到整體毛利率。因此，從毛利率角度來看，我們將看到更好的盈利能力。如果目前的趨勢繼續下去，我們將大力滲透到槍支領域，那麼我們將看到第一季度看到的一些利潤困難繼續存在。

Our next question comes from the line of Mark Smith with Lake Street Capital Markets.

我們的下一個問題來自 Lake Street Capital Markets 的 Mark Smith。

First off, Jeff, can we dig into the ammo business, just a little bit more? You've talked a bit about the profitability. Just any changes that you're seeing fundamentally in that business as far as competition, kind of where your inventories are today. And as we think about competition and kind of your initiatives to online, are you seeing more consumers move to online purchases of ammunition?

首先，傑夫，我們可以深入研究一下彈藥業務嗎？您已經談到了盈利能力。就競爭而言，您在該業務中看到的任何根本變化，就像您今天的庫存狀況一樣。當我們考慮競爭和您的在線舉措時，您是否看到越來越多的消費者轉向在線購買彈藥？

Yes, Mark, in terms of ammunition, let's talk about industry and where we're at as we sit here today. The industry is very full and robust in terms of in-stocks in ammunition. The consumer is no longer buying excess boxes of ammo. They're coming in and buying what they use. They're able to find anything that they want at this point, and they're able to find copious quantities of it on the shelves. So there's really no reactionary behavior from the consumer.

是的，馬克，就彈藥而言，讓我們談談工業以及我們今天坐在這裡的情況。該行業的彈藥庫存非常充足且強勁。消費者不再購買多餘的彈藥箱。他們進來購買他們使用的東西。此時他們能夠找到他們想要的任何東西，並且能夠在貨架上找到大量的東西。所以消費者實際上沒有任何反應行為。

In terms of the competitive landscape, we -- as noted, we've seen some declines in the margin profile. But I'm not seeing any aggressive promotional activity in the market like we saw pre-COVID when there was a ripe in-stock position or an overstock position. So I have yet to see aggressive promotional items. I think in terms of what we'll see going forward, it's back to a normal promotional cadence where you'll see good deals as some of the holiday seasons, Father's Day, hunting seasons, holiday, those types of things as we progress through those, I think we'll go back to a very normalized promotional cadence in the ammo business.

就競爭格局而言，正如所指出的，我們看到利潤率有所下降。但我沒有看到市場上有任何激進的促銷活動，就像我們在新冠疫情之前看到的那樣，當時庫存已經成熟或庫存過剩。所以我還沒有看到激進的促銷品。我認為就我們未來將看到的情況而言，它又回到了正常的促銷節奏，隨著我們的進展，你會看到一些假期、父親節、狩獵季節、假期等很划算的優惠這些，我認為我們將回到彈藥行業非常正常的促銷節奏。

Perfect. And then as we think about the rest of the business as far as inventory, some of these categories that are fairly spring based, some of the camping and fishing. Do you feel like you're going to have to clear out some of this inventory? Will we see some bigger markdowns? What kind of hit do you think you could take? Or do you feel pretty comfortable with where the inventory is and your ability to move that over the next few weeks or quarters?

完美的。然後，當我們考慮庫存方面的其餘業務時，其中一些類別相當基於春季，一些露營和釣魚。您是否覺得必須清理一些庫存？我們會看到更大的降價嗎？你認為你能承受什麼樣的打擊？或者您對庫存的位置以及您在未來幾週或幾個季度內轉移庫存的能力感到滿意嗎？

Yes, Mark, I'm very comfortable with the inventory position as we sit here today. We saw the slowdown in spring merchandise and goods early in the season. And like we've been doing for the last year, we made the necessary choices and reactions in order to ensure that we do not have too much inventory at the end of the season. So you're going to see us move through our in-stocks in a normal promotional cadence through the spring, through the summer season into the fall season. But at this point, if I look at the overall health of my inventory, I'm not worried about having to do any flash sales or fire sales in order to rightsize my assortment.

是的，馬克，我對今天坐在這裡的庫存狀況感到非常滿意。我們看到春季商品和季初商品的增長放緩。就像我們去年所做的那樣，我們做出了必要的選擇和反應，以確保我們在季末不會有太多庫存。因此，您將看到我們以正常的促銷節奏從春季、夏季到秋季處理我們的庫存。但此時，如果我查看庫存的整體健康狀況，我並不擔心必須進行任何閃購或甩賣才能調整我的品種。

Okay. And then last one for me. Just can you talk big picture, just about kind of your comfort with leverage, where you think that maybe could go where you're comfortable? And then maybe big picture, your desire to kind of keep the foot on the accelerator for store growth and what kind of gives you the comfort to you growing at this rapid rate?

好的。然後是我的最後一張。您能否談談大局，您對槓桿的舒適程度，您認為可能會發展到您感到舒適的程度？然後也許是大局，您希望繼續加速商店增長的願望，以及什麼樣的東西可以讓您以如此快的速度增長感到安慰？

Yes. On the leverage front, Mark, if we look at the leverage at the end of the quarter and our inventory position, as I stated on the call, we're kind of at the high point for inventory for the entire year. So if you think about the flow of inventory, inventory total dollars reducing through the end of the year, that money obviously will go to the leverage or to my line of credit. So I'm still very comfortable with our liquidity, with the position the company is in to weather these downturns. This is why we openly communicated that we do not want to overlever the company in order to weather any of these macroeconomic headwinds like the one that we're currently in. So very comfortable there.

是的。在槓桿方面，馬克，如果我們看看季度末的槓桿率和我們的庫存狀況，正如我在電話會議上所說，我們正處於全年庫存的高點。因此，如果你考慮到年底的庫存流動、庫存總額減少，那麼這筆錢顯然將流向槓桿或我的信用額度。因此，我仍然對我們的流動性以及公司抵禦這些低迷時期的狀況感到非常滿意。這就是為什麼我們公開表示，我們不想讓公司過度槓桿化，以應對我們目前所處的宏觀經濟逆風。所以在那裡非常舒服。

In terms of the store growth, there's a lot of white space opportunities still in the market for us to explore. I will tell you, Mark, that as we are looking at markets and with retail real estate inventory at the lowest level it's been at for decades, the ability for us to find markets where we can meet our financial hurdles is getting a bit challenging, and I will not open up stores just to hit a number. So if it does not meet my financial hurdles of 10% four-wall EBITDA and 20% ROIC, I'm not going to sign a lease. And that's something that we're going to continue to monitor as we move forward into the store expansion.

就門店增長而言，市場上仍有大量空白機會可供我們探索。我會告訴你，馬克，當我們關注市場時，零售房地產庫存處於幾十年來的最低水平，我們找到能夠克服財務障礙的市場的能力變得有點具有挑戰性，我不會僅僅為了達到目標而開店。因此，如果它不能滿足我 10% 的四壁 EBITDA 和 20% ROIC 的財務障礙，我就不會簽署租約。在我們進行商店擴張時，我們將繼續監控這一點。

Our next question comes from the line of Mark Harman with R5 Capital.

我們的下一個問題來自 R5 Capital 的 Mark Harman。

I think you just answered part of my question, but kind of looking out to next year's store growth plan. Is there -- are there any thoughts on changes to location selection, especially box-size CapEx changes and anything that you're thinking differently for next year based on how things have been going in the last couple of months?

我想你只是回答了我的部分問題，但有點期待明年的商店增長計劃。對於位置選擇的變化，特別是盒子大小的資本支出變化，以及根據過去幾個月的情況，您對明年的任何不同想法，有什麼想法嗎？

Yes, Mark, I'd go back to the statement of the retail real estate inventories at the lowest level that it's been for decades. A real estate is still a real estate. So you have a long line of retailers lining up to sign a lease on any of the boxes that we're looking at. So as we think about further expansion, we're going to continue to target the right MSAs. We go into any market targeting that 30,000 square foot box is our starting point, and we adjust up and down accordingly based on market conditions, the right real estate, the size of the box that we can find and then consumer trends and demand. We're going to continue to hone those trends as we look at real estate expansion. For me, my primary focus right now is ensuring that any box we do go into, I am confident that it can hit our financial metrics that we've laid out.

是的，馬克，我想回顧一下零售房地產庫存處於數十年來最低水平的報表。房地產仍然是房地產。因此，零售商排著長隊，排隊簽署我們正在考慮的任何盒子的租約。因此，當我們考慮進一步擴展時，我們將繼續瞄準正確的 MSA。我們進入任何市場，都會以 30,000 平方英尺的盒子為起點，根據市場情況、合適的房產、我們能找到的盒子尺寸以及消費者趨勢和需求進行相應的上下調整。當我們考慮房地產擴張時，我們將繼續磨練這些趨勢。對我來說，我現在的主要關注點是確保我們進入的任何盒子，我相信它都能達到我們制定的財務指標。

So have you seen that those hurdles are more easily met with a smaller size box yet? Or is that not the case?

那麼您是否發現使用較小尺寸的盒子更容易解決這些障礙？或者事實並非如此？

I would say that it goes back to -- we target a 30,000 square foot box because that's really the right space for us to make a nice presentment of SKU assortment in those smaller boxes, really have to know the SKU assortment well. It has to be in markets that we understand intently. So we just put the A SKUs in there. The 30,000 square foot box allows me to have a broad assortment with a variety of products and allows me to hit those financial hurdles easier.

我想說的是，我們的目標是 30,000 平方英尺的盒子，因為這確實是我們在這些較小的盒子中很好地展示 SKU 分類的合適空間，我們必須非常了解 SKU 分類。它必須是在我們專心了解的市場中。所以我們只是把 A SKU 放在那裡。 30,000 平方英尺的盒子讓我能夠擁有各種各樣的產品，並讓我更容易地克服這些財務障礙。

Okay. And then maybe a follow-up to that. Just on the e-commerce side, can you quantify what happened this quarter in e-comm?

好的。然後也許是後續行動。就電子商務方面而言，您能否量化本季度電子商務發生的情況？

Yes. As we stated on the call, e-commerce for us is a continually growing highlight of the business, where other retailers, and I'm sure you've seen them come out, are pointing to declines in their e-commerce sales. That's an area for us that continues to comp positive year-over-year. So we're really happy with what our e-comm team has done to the business. We continue to penetrate into new geographies and acquire new customers. And we're excited about the opportunity that gives to the business on a go forward.

是的。正如我們在電話會議上所說，電子商務對我們來說是業務中不斷增長的亮點，而其他零售商（我相信您已經看到他們出來了）都指出其電子商務銷售額正在下降。對我們來說，這是一個逐年持續增長的領域。因此，我們對電子商務團隊為業務所做的一切感到非常滿意。我們繼續滲透到新的地區並獲取新的客戶。我們對為業務提供前進的機會感到興奮。

Our next question is a follow-up from the line of Eric Wold with B. Riley.

我們的下一個問題是 Eric Wold 和 B. Riley 的後續問題。

Just a quick follow-up. I want to make sure I understand one of the previous questions on gross margin. I understand the decline year-over-year was ammo margins coming in and then the mix with lower camping and fishing. But if we take ammo out of it and take mix out of it, on an apples-to-apples basis, kind of how are these categories comparing to last year -- or camping margins apples-to-apples up down versus last year, you get into sort of categories, but just I'm trying to understand ex mix what margins are doing besides ammo.

只是快速跟進。我想確保我理解之前有關毛利率的問題之一。據我所知，同比下降是因為彈藥利潤增加，再加上露營和釣魚的減少。但如果我們把彈藥拿出來，把混合的東西拿出來，在同類的基礎上，這些類別與去年相比怎麼樣——或者露營利潤與去年相比，同類上升下降，你進入了某種類別，但我只是想了解除了彈藥之外，利潤率還做了什麼。

Yes. Outside of ammo, Eric, the margins within categories are very similar to the prior year. We have not seen a lot of pressure from the margin front in those categories. Obviously, we keep a very close eye on the competitive landscape and make sure our pricing is in line to match with our low price guarantee that we have, but we have not seen much pressure in the other areas of the business outside of ammo.

是的。埃里克，除了彈藥之外，各個類別的利潤率與去年非常相似。在這些類別中，我們沒有看到來自利潤率的巨大壓力。顯然，我們密切關注競爭格局，並確保我們的定價符合我們的低價保證，但我們在彈藥之外的其他業務領域沒有看到太大的壓力。

There are no further questions in the queue. This does conclude today's teleconference. Thank you for your participation. You may disconnect your lines at this time, and have a wonderful day.

隊列中沒有其他問題。今天的電話會議到此結束。感謝您的參與。此時您可以斷開線路，度過美好的一天。