A happy Q3 indeed for The Sportsman's Guide
It's been good news all year, too. For the first nine months, revenues are up 9%, with EPS vaulting 62% from last year to $0.44.
These are the fruits of seeds planted back in 2001, when management began pruning its catalog mailing list to hit more productive targets. The company also implemented a buyer's club that's been wildly successful, and began the shift to higher-margin Web sales. On September 30, a marketing deal was inked with Amazon
The company was highlighted in the premiere issue of Tom Gardner's Motley FoolHidden Gems as an opportunity overlooked by Wall Street. Shares have rocketed 90% since. That's Road Runner leaving the Wile E. Coyote market in some cloud of dust.
The stock is not so cheap today at 18 times trailing-12-months earnings. In fact, it may well be approaching full value. For a more detailed look at valuation, including free cash flow, and more background on the company, see Tom Jacobs' Hot E-Tailer on a Tear, and join the discussion on our Sportsman's Guide board!