Sportsman’s Warehouse Holdings, Inc. (NASDAQ:SPWH) Q3 2023 Earnings Call Transcript

Mark Herrmann: Okay, good. Thank you. And then just same as kind of Mark’s question and more — another detail. I think you said payroll was down 8.4%. Is that representative of kind of in-store labor if you look at that only? And then, how do you think about how much further that could go before you really start impacting the customer experience that you talked about at the initial part of your presentation today?

Jeff White: Yeah, Mark, that’s a good question. I just want to clarify. I think on a per store — if we were to break down our payroll expense for the quarter, on a per store basis, we were down almost 22% versus prior year. So, we made significant headway in the payroll reduction, right-sizing that line item for what we’re seeing in current business trends. And I will say that that’s where, if we look at the expense cuts, the majority of them were executed on during Q3. As we think about go-forward opportunities, continuing to simplify the business, as Paul stated, I think is front and center in our mind. Whether that be looking at the contracts that we have outstanding, looking at some of our partners in terms of business operations, and then continuing to look at our staffing levels across the organization, not just in the stores, not just the distribution center, but everywhere to make sure that we’re running as efficiently as we can.

Paul Stone: And I think to your earlier point, we want to get ourselves in a position. I think the uniqueness of our brand and really what attracted me to Sportsman’s was the employee base itself and the outfit that connect with the consumer that we have there. And I look at that as a huge opportunity for us to be able to enhance what that experience looks like as we simplify the business. So, I don’t want to put ourselves in a position where we’re, like you said, we’re at critical mass where you’re in a position where you’re hurting yourself more than being able to drive sales. But I think there’s a fine balance there as you look at this, and we’re not going to take sight off of the customer. I think that is going to be the core of all the decisions we make as an organization around the customer.

Mark Herrmann: Great. Thank you.

Operator: Thank you. There are no further questions at this time. I’d like to hand the floor back over to management for any closing comments.

Paul Stone: Thank you for joining the call today, and thank you to all the dedicated employees around the country for their commitment to Sportsman’s Warehouse. Together, we look forward to providing our customers with the best experience and customer service in the outdoor industry. Thank you.

Operator: This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.