Why did Sportsman's operating profit plummet in Q1 2024?

The operating profit of Sportsman's (SPSH) plummeted in Q1 2024 due to a combination of factors:

1. Strategic Initiatives: The company is undergoing a transformation to adapt to changing market conditions and customer preferences. This includes the closure of underperforming stores and the relocation of existing stores to more profitable locations. These strategic initiatives require significant investments and can lead to short-term disruptions in operations, resulting in lower profit margins.
2. Store Closure Costs: The closure of underperforming stores incurs costs associated with lease termination, inventory disposal, and employee severance. These one-time expenses can have a significant impact on the operating profit, especially if they are substantial.

In summary, the operating profit of Sportsman's has plummeted in Q1 2024 due to strategic initiatives and store closure costs.