Sportsman’s Warehouse Holdings, Inc. Announces Second Quarter 2025 Financial Results

Same store sales increased 2.1% over last year; outperforms the Q2 Adjusted NICS data
Gross margin up 80 basis points versus last year
Improves its full year 2025 Outlook

WEST JORDAN, Utah, Sept. 04, 2025 (GLOBE NEWSWIRE) — Sportsman’s Warehouse Holdings, Inc. (“Sportsman’s Warehouse” or the “Company”) (Nasdaq: SPWH) today announced financial results for the thirteen weeks ended August 2, 2025.

“I’m encouraged by the progress our team is making as we advance our transformation strategy. In the second quarter, we delivered 2.1% same store sales growth—our second consecutive quarter of positive comps—despite ongoing consumer headwinds and a tough June comparison,” said Paul Stone, President and Chief Executive Officer of Sportsman’s Warehouse. “Our focus on localizing assortments and shifting to digital-first marketing is already driving results, with markets like Alaska delivering high single-digit growth. At the same time, our firearms business once again outperformed the industry, underscoring our continued share gains. These results highlight the effectiveness of our strategy and the competitive advantages we’re building for profitable long-term growth. We remain focused on executing our seasonal merchandising plan to drive working capital efficiencies, which will support further debt reduction.”

For the thirteen weeks ended August 2, 2025:

• Net sales were $293.9 million, compared to $288.7 million in the second quarter of fiscal year 2025, an increase of 1.8%. The net sales increase was primarily due to increased sales in our Fishing and Hunting and Shooting Sports departments, eCommerce channel growth, and improved in-stocks, partially offset by softer sales in other departments. 
• Same store sales increased 2.1% during the second quarter of fiscal year 2025, compared to the second quarter of fiscal year 2024, primarily as a result of the same factors noted above that drove net sales growth. 
• Gross margin was $93.9 million, or 32.0% of net sales, compared to $90.0 million, or 31.2% of net sales, in the second quarter of fiscal year 2024. This 80 basis-point improvement, was largely driven by improved overall product margins from healthier inventory and increased sales from our fishing department, which carries a relatively higher gross margin.
• Selling, general, and administrative (SG&A) expenses were $97.2 million, or 33.1% of net sales, compared to $94.3 million, or 32.7% of net sales, in the second quarter of fiscal year 2024. This increase, reflects reinvestment in our customer facing areas, including store labor and digital marketing to drive sales and omnichannel traffic. 
• Net loss was $(7.1) million, compared to a net loss of $(5.9) million in the second quarter of fiscal year 2024. Adjusted net loss was $(4.7) million compared to adjusted net loss of $(5.3) million in the second quarter of fiscal year 2024 (see “GAAP and Non-GAAP Financial Measures”).
• Adjusted EBITDA improved to $8.3 million, compared to $7.4 million in the corresponding prior-year period (see “GAAP and Non-GAAP Financial Measures”).
• Diluted loss per share was $(0.18) compared to diluted loss per share of $(0.16) in the corresponding prior-year period. Adjusted diluted loss per share was $(0.12) compared to adjusted diluted loss per share of $(0.14) in the second quarter of fiscal year 2024 (see “GAAP and Non-GAAP Financial Measures”).

For the twenty-six weeks ended August 2, 2025:

• Net sales were $543.0 million, an increase of 1.9%, compared to the first six months of fiscal year 2024. The net sales increase was primarily due to increased sales in our Fishing and Hunting and Shooting Sports departments driven by improved core product in-stocks, and eCommerce channel growth, partially offset by softer sales in other departments. 
• Same store sales increased 2.0% compared to the first six months of fiscal year 2024, primarily as a result of the same factors noted above that drove net sales growth.
• Gross profit was $169.6 million or 31.2% of net sales, compared to $163.8 million or 30.7% of net sales for the first six months of fiscal 2024. This increase as a percentage of net sales was primarily due to favorable mix and rate improvements from our fishing business, which carries a higher gross margin rate profile and improved overall margins from healthier inventory.
• SG&A expenses increased to $192.4 million or 35.4% of net sales, compared with $188.8 million or 35.4% of net sales for the first six months of fiscal year 2024, due to a reinvestment into customer facing and sales driving areas of the business including store payroll, partially offset by leverage gained from higher sales.
• Net loss was $(28.3) million, compared to net loss of $(24.0) million in the prior year period. Adjusted net loss was $(20.3) million, compared to adjusted net loss of $(23.1) million in the first six months of fiscal year 2024 (see “GAAP and Non-GAAP Financial Measures”).
• Adjusted EBITDA was $(0.7) million compared to $(1.3) million in the corresponding prior-year period (see “GAAP and Non-GAAP Financial Measures”).
• Diluted loss per share was $(0.74), compared to diluted loss per share of $(0.64) in the first six months of fiscal year 2024. Adjusted diluted loss per share was $(0.53), compared to adjusted diluted loss per share of $(0.61) in the corresponding prior-year period (see “GAAP and Non-GAAP Financial Measures”).

Balance sheet and capital allocation highlights as of August 2, 2025:                                      

• The Company ended the second quarter with net debt of $195.1 million, comprised of $151.2 million of borrowings outstanding under the Company’s revolving credit facility, $43.9 million of net borrowings outstanding under the Company’s term loan facility, and $1.8 million of cash and cash equivalents. Inventory at the end of the second quarter was $443.5 million, an increase of $80.1 million, compared with the same period in fiscal year 2024. Inventory was intentionally pulled forward in the second quarter to be on-time and ready for the key late summer and fall hunting seasons, and represents peak inventory for the year.
• Total liquidity was $109.5 million as of the end of the second quarter of fiscal year 2025, comprised of $107.7 million of availability on the revolving credit facility and $1.8 million of cash and cash equivalents.
• The Company exercised its $20 million deferred draw feature on the term loan, further strengthening the balance sheet.

Fiscal Year 2025 Outlook:

“Our second quarter results reflect the deliberate and disciplined approach we are taking to simplify assortments, improve working capital efficiency, and drive margin improvement,” said Jennifer Fall Jung, Chief Financial Officer of Sportsman’s Warehouse. “We made a strategic decision to build inventory ahead of the critical late summer and fall hunting seasons, with a focus on depth in core products, and regionally relevant items that turn faster and are supported by predictable demand. Importantly, we expect to exit 2025 with total inventory below last year’s level, demonstrating our progress in improving inventory productivity. We remain confident that the second quarter represents our peak debt and inventory levels for the year and that both will decline as we sell through seasonal product, generate improved EBITDA, and pay down debt in the back half of 2025.”

The Company is improving its sales guidance for fiscal year 2025 and expects net sales to be in the range of flat to up 3.5% and reaffirming adjusted EBITDA to be in the range of $33 million to $45 million. The Company continues to expect capital expenditures for 2025 to be in the range of $20 million to $25 million, primarily consisting of technology investments relating to merchandising, store productivity and general store maintenance. The Company anticipates opening one new store in November 2025 in Surprise, Arizona.

The Company has not reconciled expected adjusted EBITDA for fiscal year 2025 to GAAP net income because the Company does not provide guidance for net (loss) income and is not able to provide a reconciliation to net (loss) income without unreasonable effort. The Company is not able to estimate net (loss) income on a forward-looking basis without unreasonable efforts due to the variability and complexity with respect to the charges excluded from Adjusted EBITDA.

Conference Call Information:

A conference call to discuss second quarter 2025 financial results is scheduled for September 4, 2025, at 5:00 PM Eastern Time. The conference call will be held via webcast and may be accessed via the Investor Relations section of the Company’s website at www.sportsmans.com.

Non-GAAP Financial Measures

This press release includes the following financial measures defined as non-GAAP financial measures by the Securities and Exchange Commission (the “SEC”) and that are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”): adjusted net (loss) income, adjusted diluted (loss) earnings per share and adjusted EBITDA. The Company defines adjusted net (loss) income as net (loss) income plus expenses incurred relating to director and officer transition costs, estimated tax benefit had the company not been in a deferred tax asset valuation allowance position, and expenses that we do not believe are indicative of our ongoing operations. Net (loss) income is the most comparable GAAP financial measure to adjusted net (loss) income. The Company defines adjusted diluted (loss) earnings per share as adjusted net (loss) income divided by diluted weighted average shares outstanding. Diluted (loss) earnings per share is the most comparable GAAP financial measure to adjusted diluted (loss) earnings per share. The Company defines Adjusted EBITDA as net (loss) income plus interest expense, income tax expense (benefit), depreciation and amortization, stock-based compensation expense, expenses related to director and officer transitions, and expenses that we do not believe are indicative of our ongoing operations. Net (loss) income is the most comparable GAAP financial measure to adjusted EBITDA. The Company has reconciled these non-GAAP financial measures to the most directly comparable GAAP financial measures under “GAAP and Non-GAAP Financial Measures” in this release. As noted above, the Company has not provided a reconciliation of fiscal year 2025 guidance for Adjusted EBITDA, in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K.

The Company believes that these non-GAAP financial measures not only provide its management with comparable financial data for internal financial analysis but also provide meaningful supplemental information to investors and are frequently used by analysts, investors and other interested parties in the evaluation of companies in the Company’s industry. Specifically, these non-GAAP financial measures allow investors to better understand the performance of the Company’s business and facilitate a more meaningful comparison of its diluted (loss) earnings per share and actual results on a period-over-period basis. The Company has provided this information as a means to evaluate the results of its ongoing operations.  Management uses this information as additional measurement tools for purposes of business decision-making, including evaluating store performance, developing budgets and managing expenditures. Other companies in the Company’s industry may calculate these items differently than the Company does. Each of these measures is not a measure of performance under GAAP and should not be considered as a substitute for the most directly comparable financial measures prepared in accordance with GAAP. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. The Company’s management believes that these non-GAAP financial measures allow investors to evaluate the Company’s operating performance and compare its results of operations from period to period on a consistent basis by excluding items that management does not believe are indicative of the Company’s core operating performance. The presentation of such measures, which may include adjustments to exclude unusual or non-recurring items, should not be construed as an inference that the Company’s future results, cash flows or leverage will be unaffected by other unusual or non-recurring items.

Forward-Looking Statements 

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements in this release include, but are not limited to, statements regarding our plan to reduce debt levels in the second half of 2025, our expectation to exit 2025 with total inventory below last year’s level; our guidance for net sales, Adjusted EBITDA and capital expenditures for fiscal year 2025; and our expectation to open one new store in fiscal year 2025. Investors can identify these statements by the fact that they use words such as “aim,” “anticipate,” “assume,” “believe,” “can have,” “could,” “due,” “estimate,” “expect,” “goal,” “intend,” “likely,” “may,” “objective,” “plan,” “positioned,” “potential,” “predict,” “should,” “target,” “will,” “would” and similar terms and phrases. These forward-looking statements are based on current expectations, estimates, forecasts and projections about our business and the industry in which we operate and our management’s beliefs and assumptions. We derive many of our forward-looking statements from our own operating budgets and forecasts, which are based upon many detailed assumptions. While we believe that our assumptions are reasonable, we caution that predicting the impact of known factors is very difficult, and we cannot anticipate all factors that could affect our actual results. The Company cannot assure investors that future developments affecting the Company will be those that it has anticipated. Actual results may differ materially from these expectations due to many factors including, but not limited to: current and future government regulations, in particular regulations relating to the sale of firearms and ammunition, which may impact the supply and demand for the Company’s products and ability to conduct its business; the Company’s retail-based business model which is impacted by general economic and market conditions and economic, market and financial uncertainties that may cause a decline in consumer spending; the Company’s concentration of stores in the Western United States which makes the Company susceptible to adverse conditions in this region, and could affect the Company’s sales and cause the Company’s operating results to suffer; the highly fragmented and competitive industry in which the Company operates and the potential for increased competition; changes in consumer demands, including regional preferences, which we may not be able to identify and respond to in a timely manner; the Company’s entrance into new markets or operations in existing markets, including the Company’s plans to open additional stores in future periods, which may not be successful; the Company’s implementation of a plan to reduce expenses in response to adverse macroeconomic conditions, including an increased focus on financial discipline and rigor throughout the Company’s organization; impact of general macroeconomic conditions, such as labor shortages, inflation, elevated interest rates, the impacts of tariffs and trade disputes, economic slowdowns, and recessions or market corrections; and other factors that are set forth in the Company’s filings with the SEC, including under the caption “Risk Factors” in the Company’s Form 10-K for the fiscal year ended February 1, 2025, which was filed with the SEC on April 2, 2025, and the Company’s other public filings made with the SEC and available at www.sec.gov. If one or more of these risks or uncertainties materialize, or if any of the Company’s assumptions prove incorrect, the Company’s actual results may vary in material respects from those projected in these forward-looking statements. Any forward-looking statement made by the Company in this release speaks only as of the date on which the Company makes it. Factors or events that could cause the Company’s actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.

About Sportsman’s Warehouse Holdings, Inc.

Sportsman’s Warehouse Holdings, Inc. is an outdoor specialty retailer focused on meeting the needs of the seasoned outdoor veteran, the first-time participant, and everyone in between. We provide outstanding gear and exceptional service to inspire outdoor memories.

For press releases and certain additional information about the Company, visit the Investor Relations section of the Company’s website at www.sportsmans.com.

Investor Contact:

Riley Timmer
Vice President, Investor Relations
Sportsman’s Warehouse
(801) 566-6681
investors@sportsmans.com