CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Sportsman’s Warehouse (SPWH) down 19% on failed merger

By Robert Davis

20:41, 3 December 2021

Exterior view of the Sportsman's Warehouse in Las Vegas, Nevada
Sportsman’s Warehouse in Las Vegas, Nevada - Photo: Shutterstock

American sporting goods retailer Sportsman’s Warehouse saw its stock tumble more than 19% to $13.64 after the company pulled out of a merger with Great American Outdoors Group, which owns Bass Pro Shops and Cabelas.  

Including Friday’s drop, the stock for the West Jordan, Utah-based company has lost more than 22% so far this year.

Merger details

Both Sportsman’s Warehouse and the Great Outdoors brands sell specialty apparel and outdoor sporting gear. They carry many of the same brands, which generally helps stabilise prices of some popular products.

According to a regulatory filing from the Federal Trade Commission, Great Outdoors was seeking to purchase Sportsman’s Warehouse for $785m (£593m).

The deal was initially announced in December 2020.

FTC Competition director Holly Vedova said that an 11-month-long investigation found Sportsman’s Warehouse “competes closely” with Great American Outdoors Group. On those grounds alone, Vedova said she could not support the merger.


134.12 Price
+7.790% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.25


15.36 Price
+5.850% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.16


239.02 Price
+1.900% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.14


147.02 Price
+0.760% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.14

The FTC review also found that the combination would have “increased prices, reduced product offerings, and diminished quality and service” for Sportsman’s Warehouse customers in at least 24 local markets in the US.

Retail crossroads

The annulled merger comes as the retail industry prepares to face a crossroads in 2022.

Analyst Dylan Carden at William Blair wrote in a note to investors on 16 November that apparel retailers may find themselves fighting the same supply chain battles they’re in now.

“Supply chain issues will not abate in the near term, with several companies and sources confirming that disruption could last well into 2022,” Carden wrote. “While that has kept inventories in check, allowing for higher pricing and fewer promotions, we see the situation turning into more of a risk moving past the holidays.”

Read more: Bankruptcy of activewear company reveals pressures on retail

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading