What happened

Retailer Sportsman's Warehouse Holdings (SPWH -1.60%) announced mixed quarterly results and said its CEO was stepping down. Investors weren't pleased with all of the surprises, sending shares down as much as 28% on Thursday morning. As of 11:08 a.m., the stock had recovered to a 19.5% loss.

So what

Sportsman's Warehouse is a specialty retailer focused on outdoor sports. The company's fiscal fourth quarter ending Jan. 28 contained some highs and lows, including earnings per share of $0.33 that beat expectations by $0.04 per share but also lower-than-expected revenue and same-store sales down 12.5%.

Sportsman's Warehouse also said it sees current-quarter sales coming in between $265 million and $270 million, which is well short of the $298 million analyst consensus estimate.

CFO Jeff White said, "While we believe outdoor participation remains strong, the macroeconomic environment and inflationary pressures are weighing on the consumer and their discretionary spending."

He also said that "the unusually wet and cold weather in the western U.S." this spring is delaying the start of the shooting, fishing, and camping seasons, which is negatively impacting the business.

Furthermore, the company announced a surprising shake-up in the C-suite. Jon Barker is stepping down as CEO and board member after six years, effective April 14, with current board chair Joseph P. Schneider stepping in as interim CEO while a search for his replacement is conducted.

Now what

Barker is a Walmart veteran who oversaw a period of growth at Sportsman's Warehouse, with the stock at one point up more than 200% during his tenure. But it has given back much of those gains since the beginning of 2022.

The market hates surprises, but it should be noted that although Barker is leaving immediately, and Sportsman's Warehouse appears not to have a successor picked out, the CEO will be available to advise the company for 30 days.

Sportsman's Warehouse remains focused on growth, with plans to open 15 new stores in 2023. If all goes to plan, this could prove to be an attractive time to buy into this retailer, but given the surprises announced, investors are understandably cautious about diving in right now.