Sportsman's Warehouse Holdings, Inc. · NASDAQ:SPWH
Sportsman's Warehouse — Investor Day (September 2022)
60 slides from Sportsman's Warehouse's investor day presentation, Sep 22, 2022
Slide 1: Investor Presentation September 22, 2022
INVESTOR PRESENTATION September 22, 2022
Slide 2: Forward Looking Statements and Non-GAAP Measures
Copyright © 2022 Sportsman's Warehouse. 2 FORWARD LOOKING STATEMENTS AND NON - GAAP MEASURES This presentation includes forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933 and Section 21E of
Slide 3: Agenda
Copyright © 2022 Sportsman's Warehouse. 3 Copyright © 2022 Sportsman's Warehouse. 3 AGENDA Welcome / Breakfast Management Presentations – Part I Store & DC Tours Lunch Management Presentations – Part II
Slide 4: Jon Barker, Chief Executive Officer
Jon Barker Chief Executive Officer
Slide 5: Sportsman's Warehouse
Copyright © 2022 Sportsman's Warehouse. 5 SPORTSMAN’S WAREHOUSE Copyright © 2022 Sportsman's Warehouse. 5 “We Provide Outstanding Gear and Exceptional Service to Inspire Outdoor Memories”
Slide 6: Leadership Team
Copyright © 2022 Sportsman's Warehouse. 6 LEADERSHIP TEAM TRAVIS MANN MATT FRENCH TOM CLEMENT RILEY TIMMER VP, Vis. Merch & Real Estate VP, Compliance VP, Supply Chain & Omni VP, IR & Corp Development 2000 1997 2022 2022 JON BARKER JEFF WHITE SHANE MILLER STEVE STONER SHERRY JANE LOVE CEO CFO SVP, S
Slide 7: Board of Directors
Copyright © 2022 Sportsman's Warehouse. 7 BOARD OF DIRECTORS PHILIP WILLIAMSON RICHARD MCBEE NANCY A. WALSH DIRECTOR DIRECTOR DIRECTOR JOSEPH SCHNEIDER JON BARKER MARTHA BEJAR GREGORY HICKEY CHAIRMAN DIRECTOR DIRECTOR DIRECTOR
Slide 8: Large, Growing Industry with Strong Participation and Retention
Copyright © 2022 Sportsman's Warehouse. 8 $70B+ Estimated Industry Size 1 LARGE, GROWING INDUSTRY WITH STRONG PARTICIPATION AND RETENTION Hunting and Shooting Sports 2 ~14 million new firearm owners in 2020 & 2021 Repeat Customers 2 ~23% of customers who purchased a firearm in 2020, purchased a seco
Slide 9: Competition & Market Share
Copyright © 2022 Sportsman's Warehouse. 9 COMPETITION & MARKET SHARE Resurgence of outdoor participation Fragmented & reduced competition Significant Market Share Opportunity Nimble & entrepreneurial culture, driving quick go - to - market strategies Increasing brand reach & awareness 50K+ independe
Slide 10: Differentiated Outdoor Specialty Retailer
Copyright © 2022 Sportsman's Warehouse. 10 SPORTSMAN’S WAREHOUSE Conveniently located stores with easy - in , easy - out access Highly trained, experienced employees with “localized ” knowledge Fully integrated omni - channel platform allowing customers to seamlessly shop the full assortment Every d
Slide 11: Current Store Footprint
Copyright © 2022 Sportsman's Warehouse. 11 Sportsman’s Warehouse Stores FY’22 New Stores U.S. FOOTPRINT CURRENT STORE FOOTPRINT
Slide 12: We Know Our Customers
Copyright © 2022 Sportsman's Warehouse. 12 WE KNOW OUR CUSTOMERS AGE HOUSEHOLD INCOME HOMEOWNER SHOPS AT EATS AT DRIVES KIDS OTHER ACTIVITIES EDUCATION LISTENS TO WORK 48 $90,000 ✓ Home Depot, Walmart Texas Roadhouse, Chick - Fil - A Chevy Silverado 2500 3 Kid’s Sports, College Sports, Church Colleg
Slide 13: Key Company Highlights
Copyright © 2022 Sportsman's Warehouse. 13 We Provide Outstanding Gear and Exceptional Service to Inspire Outdoor Memories KEY COMPANY HIGHLIGHTS Flexible store format with path to 300+ stores Authentic, differentiated outdoor specialty retailer with a growing customer file and loyal customer base O
Slide 14: Merchandising
MERCHANDISING Sherry Jane Love Sr. Vice President of Merchandising
Slide 15: Assortment Strategy & Local Assortment
Copyright © 2022 Sportsman's Warehouse. 15 ASSORTMENT STRATEGY & LOCAL ASSORTMENT STRATEGY | DEPTH, BREADTH AND BRANDS Private brand Portfolio of brands
Slide 16: Growth Opportunities
Copyright © 2022 Sportsman's Warehouse. 16 GROWTH OPPORTUNITIES Footwear Apparel Backyard Camping Dog and Pet Outdoor Cooking Power Sports Saltwater Fishing
Slide 17: Private Brand Growth
Copyright © 2022 Sportsman's Warehouse. 17 77 PRIVATE BRAND GROWTH 7% - 9% 4%
Slide 18: Private brand: hunting
Copyright © 2022 Sportsman's Warehouse. 18 Designed for the authentic hunter focused on performance Product is tested in the field to ensure reliability during the hunt Combination of technology, durability, and style at an affordable price Key features & benefits comparable to national best brands
Slide 19: Private brand: fishing and camping
Copyright © 2022 Sportsman's Warehouse. 19 Great gear to provide the best experience on the water and at the campsite Includes gear for all essential fishing and camping needs Quality and value Created and tested by end users Opportunity for growth in category expansion Authentic fishing and camping
Slide 20: Private brand: hunting and camping apparel and footwear
Copyright © 2022 Sportsman's Warehouse. 20 For the hunter and camper that enjoys outdoor activities with quality gear Tested gear at an affordable price Launched first footwear style in 2022 Created and tested by end users Growth opportunities in category expansion Hunting and camping categories and
Slide 21: Private brand: shooting accessories
Copyright © 2022 Sportsman's Warehouse. 21 Insert Image Here Insert Image Here Accessories for the serious hunter or recreational shooter Comparable quality at affordable prices Field tested for reliability and durability Growth opportunities in category expansion Authentic shooting / tactical brand
Slide 22: Visual Merchandising
VISUAL MERCHANDISING Travis Mann Vice President of Real Estate & Visual Merchandising
Slide 23: Improved Merchandising Before & After
Copyright © 2022 Sportsman's Warehouse. 23 IMPROVED MERCHANDISING Before & After
Slide 24: Improved Merchandising
Copyright © 2022 Sportsman's Warehouse. 24 IMPROVED MERCHANDISING • Partner with large vendors • Improved sightlines • Improved shopping experience • Drive sales and margins Store within a store concept
Slide 25: Store Operations
Shane Miller Sr. Vice President Store Operations STORE OPERATIONS
Slide 26: Store Operations topics
Copyright © 2022 Sportsman's Warehouse. 26 “We Provide Outstanding Gear and Exceptional Service to Inspire Outdoor Memories” Store refresh program How we win with customer service / expertise How we engage with customers Conservation The power of reporting
Slide 27: How We Win with Customer Service and Expertise
Copyright © 2022 Sportsman's Warehouse. 27 HOW WE WIN WITH CUSTOMER SERVICE AND EXPERTISE • Hire, train, and develop passionate and knowledgeable associates • Provide engaging opportunities to learn and use products and merchandise • Training and sales performance is encouraged, tracked, and rewarde
Slide 28: How We Engage with Customers
Copyright © 2022 Sportsman's Warehouse. 28 HOW WE ENGAGE WITH CUSTOMERS Credit Card Kiosks Brag Board Shopping Kiosk Fishing Board
Slide 29: Used Firearms, Service Plans, Gunsmith Services
Copyright © 2022 Sportsman's Warehouse. 29 HOW WE ENGAGE WITH CUSTOMERS USED FIREARMS: BUY, SELL, & TRADE FIREARM SERVICE PLANS GUNSMITH SERVICES ▪ Increasing demand for locations that buy and sell firearms safely ▪ Encourage trade - ins and trade - ups – 90 active locations ▪ Significantly higher m
Slide 30: 95%+ of Population Serviced Through FFL Partnerships
Copyright © 2022 Sportsman's Warehouse. 30 95%+ OF POPULATION SERVICED THROUGH FFL PARTNERSHIPS
Slide 31: Store Refresh Program: Before
Copyright © 2022 Sportsman's Warehouse. 31 STORE REFRESH PROGRAM Before Refresh • Dated fixturing • Poor sightlines • Inefficient checkout • Not visually pleasing
Slide 32: Store Refresh Program: After
Copyright © 2022 Sportsman's Warehouse. 32 STORE REFRESH PROGRAM • Improved sightlines, merchandise presentation, brand recognition and seasonal intensity • Connect to a new generation of customers while protecting our culture and heritage • Checkout and customer service efficiency • Update stores a
Slide 33: Store Refresh Program Results
Copyright © 2022 Sportsman's Warehouse. 33 STORE REFRESH PROGRAM • Refreshed stores – 2021: 18 stores 2022: 8 stores • Customer satisfaction scores increased on average by 14.3% • Revenue in refresh stores outperforms company comp stores
Slide 34: Conservation and Public Land Restoration
Copyright © 2022 Sportsman's Warehouse. 34 CONSERVATION AND PUBLIC LAND RESTORATION • 122 stores organize the efforts • Over 250 events held in 2022 • Local community involvement • Preserving the natural beauty of the outdoors Maintain the Terrain Events ~2,000 hours of volunteer labor ~500 voluntee
Slide 35: The Power of Reporting
Copyright © 2022 Sportsman's Warehouse. 35 THE POWER OF REPORTING
Slide 36: The Power of Reporting
Copyright © 2022 Sportsman's Warehouse. 36 THE POWER OF REPORTING
Slide 37: Flexible Store Format
Copyright © 2022 Sportsman's Warehouse. 37 FLEXIBLE STORE FORMAT “Spike Camp” concept stores (~10K sq. ft store) Greater reach to more geographies Value Engineering
Slide 38: Store & DC Tours
Copyright © 2022 Sportsman's Warehouse. 38 STORE & DC TOURS
Slide 39: INVESTOR PRESENTATION September 22, 2022
INVESTOR PRESENTATION September 22, 2022
Slide 40: Real Estate
REAL ESTATE Travis Mann Vice President of Real Estate & Visual Merchandising
Slide 41: Real Estate Development Methodology
Copyright © 2022 Sportsman's Warehouse. 41 REAL ESTATE DEVELOPMENT Methodology Identify Underserved Areas Demographics & Population Size On - the - Ground Market Knowledge NICS Firearms Sales Data Technology (Placer.ai foot traffic data) Sales Model Projections Sportsman’s Warehouse Stores U.S. FOOT
Slide 42: Real Estate Development
Copyright © 2022 Sportsman's Warehouse. 42 REAL ESTATE DEVELOPMENT
Slide 43: Real Estate Development
Copyright © 2022 Sportsman's Warehouse. 43 REAL ESTATE DEVELOPMENT
Slide 44: Strategic Overview
STRATEGIC OVERVIEW Jon Barker Chief Executive Officer
Slide 45: New Store Growth
Copyright © 2022 Sportsman's Warehouse. 45 Significant Store Growth NEW STORE GROWTH Sportsman’s Warehouse Stores FY’22 New Stores U.S. FOOTPRINT 92 103 112 122 131 FY18 FY19 FY20 FY21 FY22E CAGR: 9.2%
Slide 46: Significant New Store Potential
Copyright © 2022 Sportsman's Warehouse. 46 Sportsman’s Warehouse Stores U.S. FOOTPRINT Significant New Store Potential 80+ stores in the west Underserved consumer / demand Flexible store format (large & small markets) Within 100 miles of current store to leverage supply chain ACCELERATED STORE EXPAN
Slide 47: Accelerated Store Expansion Strategy
Copyright © 2022 Sportsman's Warehouse. 47 ACCELERATED STORE EXPANSION STRATEGY Estimated 131 Stores in 30 States at End of FY2022 Strategic Filters • Data - driven market prioritization to expand footprint • Convenient locations • Underserved consumer markets • Flexible store formats (7,500 – 65,00
Slide 48: Grow and Enhance Omni-Channel
Copyright © 2022 Sportsman's Warehouse. 48 GROW AND ENHANCE OMNI - CHANNEL Leverage stores 1 2 Expand merchandise assortment 3 Increase reach & database growth through digital maturity 4% 15% + ~ 25% 2025 Target 2022 2019 Ecom Penetration (% of sales) – 70%+ ecom sourced thru stores & dropship – Fir
Slide 49: Deepen Private Brand Penetration
Copyright © 2022 Sportsman's Warehouse. 49 DEEPEN PRIVATE BRAND PENETRATION 1 2025 Target 2022 7% - 9% ~4% 1 Includes private brand sales and exclusive offerings. Penetration is expressed as a percentage of total sales
Slide 50: Disciplined Approach to M&A
Copyright © 2022 Sportsman's Warehouse. 50 DISCIPLINED APPROACH TO M&A Adjacent Categories or Product to Attract a New Consumer Facilitates Accelerated / Strategic Store Growth Must Support Strategic Roadmap Accretive to Long - term EBIT Margins Key Acquisition Criteria 12 F&S Stores
Slide 51: Financial Review & Outlook
FINANCIAL REVIEW & OUTLOOK Jeff White Chief Financial Officer
Slide 52: Key Highlights and Takeaways
Copyright © 2022 Sportsman's Warehouse. 52 KEY HIGHLIGHTS AND TAKEAWAYS Strong underlying fundamentals driving growth Strong balance sheet & cash flow Well positioned to capture market share Disciplined financial model for store expansion Shareholder value driven capital allocation strategy
Slide 53: Strong Financial Performance
Copyright © 2022 Sportsman's Warehouse. 53 STRONG FINANCIAL PERFORMANCE Net Sales 1 ($M) Adjusted EBITDA 2 ($M) & Margin (%) Gross Profit ($M) & Margin (%) $68 $59 $163 $137 $121 8.1% 6.7% 11.2% 9.1% 8.2% $- $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 $160.0 $180.0 FY18 FY19 FY20 FY21 TTM $849 $886
Slide 54: Strong Balance Sheet with Disciplined Investment Approach
Copyright © 2022 Sportsman's Warehouse. 54 STRONG BALANCE SHEET WITH DISCIPLINED INVESTMENT APPROACH Copyright © 2022 Sportsman's Warehouse. 54 Omni - channel development (retail & e - commerce) Talent & technology New store growth Clear Capital Allocation Priorities Leverage Ratio 1 2.7x 2.6x 2.5x
Slide 55: Exploring a Strategically Placed 2nd Distribution Center
Copyright © 2022 Sportsman's Warehouse. 55 Total Cost Reductions Located along major corridor Faster service to eastern stores Decreased transportation expenses Support new store growth EXPLORING A STRATEGICALLY PLACED 2 ND DISTRIBUTION CENTER - 2024 Sportsman’s Warehouse Stores U.S. FOOTPRINT Curre
Slide 56: New Store Performance
Copyright © 2022 Sportsman's Warehouse. 56 NEW STORE PERFORMANCE 4 - Wall EBITDA: ~15 % ROIC: ~47% 2019 – 2021 (3 year average)
Slide 57: FY2025 Targets
Copyright © 2022 Sportsman's Warehouse. 57 FY2025 TARGETS $ 1.8B - $ 2.0B Revenue: 8% - 10% AEBITDA: Path to sales & profitability goals High single to low double - digit organic growth from expansion into new and existing geographies 1 Operational efficiencies to drive higher gross margins and leve
Slide 58: Key Growth Initiatives
Copyright © 2022 Sportsman's Warehouse. 58 KEY GROWTH INITIATIVES TO ACHIEVE OUR LONG - TERM SALES AND EBITDA GOALS Expand Store Footprint Opportunistic Acquisitions Improved Product Merchandising Grow Loyalty and Credit Card Programs Leverage Omni - Channel Platform
Slide 59: Appendix
SEEN APPENDIX
Slide 60: Non-GAAP to GAAP Reconciliation Table
Copyright © 2022 Sportsman's Warehouse. 60 NON - GAAP TO GAAP RECONCILIATION TABLE Reconciliation of net income to adjusted EBITDA: Net income $ 14,614 $ 17,723 $ 16,612 $ 28,173 Interest expense 767 266 1,334 492 Income tax expense (benefit) 5,135 6,195 5,576 9,147 Depreciation and amortization 7,7
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