Sportsman's Warehouse Q1 2027 Earnings Report

Sportsman's Warehouse EPS Results

• Actual EPS: -$0.39
• Consensus EPS: -$0.58
• Beat/Miss: Beat by +$0.19
• One Year Ago EPS: -$0.56

Sportsman's Warehouse Revenue Results

• Actual Revenue: $256.08 million
• Expected Revenue: $252.30 million
• Beat/Miss: Beat by +$3.78 million
• YoY Revenue Growth: N/A

Sportsman's Warehouse Announcement Details

• Quarter: Q1 2027
• Date: 6/2/2026
• Time: After Market Closes
• Conference Call Date: Tuesday, June 2, 2026
• Conference Call Time: 5:00PM ET

Sportsman’s Warehouse, Inc. (NASDAQ: SPWH) operates as a specialty retailer of hunting, shooting, fishing, camping and related outdoor sports equipment in the United States. The company’s brick-and-mortar footprint comprises over 100 retail locations across more than 20 states, complemented by an e-commerce platform that serves anglers and outdoorsmen nationwide. By focusing on core outdoor activities, Sportsman’s Warehouse delivers a comprehensive shopping experience for enthusiasts of all skill levels.

The retailer’s product assortment includes firearms and ammunition, archery gear, fishing tackle and boats, camping supplies, outdoor apparel and footwear, water sports equipment and pet supplies. In addition to merchandise offerings, the company provides services such as gunsmithing, bow tuning, firearm safety courses and customer clinics. These services aim to enhance customer loyalty and drive repeat visits by fostering a hands-on, educational environment.

Headquartered in Midvale, Utah, Sportsman’s Warehouse was founded in 1986 and has grown steadily through organic expansion and selective acquisitions. The company went public in 2013, trading on the Nasdaq under the ticker SPWH, and emphasizes omnichannel integration to blend in-store experiences with online convenience. Its distribution network and e-commerce operations enable timely fulfillment of orders both to distribution centers and directly to consumers.

Sportsman’s Warehouse is guided by a management team with deep expertise in retail and outdoor sporting goods. The company’s leadership continues to invest in merchandise innovation, digital tools and customer engagement initiatives, aiming to strengthen its market position and capture a growing base of outdoor enthusiasts. Through community events, sponsored hunts, fishing derbies and partnerships with conservation groups, Sportsman’s Warehouse reinforces its commitment to the outdoor sports lifestyle.

Sportsman's Warehouse Q1 2027 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Sportsman's Warehouse reported Q1 same-store sales up 2.1% and net sales of $256.1 million, with strength led by hunting/shooting sports and fishing despite continued macro pressure on consumers.
• Neutral Sentiment: The company said its transformation is centered on its core pursuits, including new initiatives in fishing e-commerce, a Field & Stream partnership, and improved online firearm bundling to boost attachment and basket size.
• Positive Sentiment: Management highlighted continued progress on inventory discipline, including lower inventory year over year and a goal to end fiscal 2026 with less inventory than 2025, which should improve turns and free up working capital.
• Negative Sentiment: Gross margin fell to 29.6% from 30.4% last year, mainly due to product mix skewing toward firearms and ammunition, with some added pressure in other categories.
• Positive Sentiment: The company reiterated full-year guidance, calling for fiscal 2026 net sales of down 1% to up 2% and adjusted EBITDA of $30 million to $36 million, while continuing to prioritize debt reduction and free cash flow generation.

Presentation

[Operator]

Thank you for standing by, and welcome to Sportsman's Warehouse First Quarter 2026 Earnings Conference Call. Currently, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. To remove yourself from the queue, you may press star one one again. I would now like to hand the call over to Riley Timmer, Vice President of Strategic Programs and IR. Please go ahead.

[Riley Timmer, VP of Strategic Programs and Investor Relations at Sportsman's Warehouse]

Thank you, operator. Participating on our Q1 2026 call today is Paul Stone, our Chief Executive Officer, and Jennifer Fall Jung, our Chief Financial Officer. I will now take a moment and remind everyone of the company's safe harbor language. The statements we make today contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which includes statements regarding expectations about our future results of operations, demand for our products, and growth of our industry. Actual results may differ materially from those suggested in such statements due to a number of risks and uncertainties, including those described in the company's most recent Form 10-K and the company's other filings made with the SEC. We will also disclose non-GAAP financial measures during today's call.

[Riley Timmer, VP of Strategic Programs and Investor Relations at Sportsman's Warehouse]

Definitions of such non-GAAP measures, as well as reconciliations to the most directly comparable GAAP financial measures, are provided as supplemental financial information in our press release, included as Exhibit 99.1 to the Form 8-K we furnished to the SEC today, which is also available on the investor relations section of our website at sportsmans.com. I'll now turn the call over to Paul.

[Paul Stone, CEO at Sportsman's Warehouse]

Thank you, Riley, and good afternoon, everyone. Before we begin, I want to recognize our dedicated outfitters across the country. Every day, they deliver on our promise of great gear and great service, strengthening our connection with customers and supporting the progress to transform Sportsman's Warehouse. I'm pleased that the same-store sales in the first quarter were up just over 2% compared to last year, despite ongoing consumer macroeconomic pressure and higher fuel prices. This increase is on top of the 2% growth we achieved in Q1 of last year. We continue to refine our assortment to meet the current needs of the customer with regionally specific product and brands that strategically align to our core pursuits. First quarter sales in our hunting and shooting sports department increased over 7% versus last year.

[Paul Stone, CEO at Sportsman's Warehouse]

During Q1, we executed a successful spring Range Days event, showcasing pursuit-led solutions for the shooting sports customer through curated products and accessories. While event-driven demand further supported sales of firearms and ammunition during the quarter, we will continue to strategically build on our authority as a leader in both shooting sports and personal protection. Sales in our fishing department increased nearly 6% in Q1 and is up about 17% on a two-year comp stack. Although a softer-than-expected ice fishing season put pressure on the category in Q1, we are confident in our assortment and position in the market to continue to capture share during the late spring and summer seasons. As we've discussed on prior calls, last year, we strategically reduced inventory and the assortment in our camping and soft line departments.

[Paul Stone, CEO at Sportsman's Warehouse]

This decision was intentional to eliminate slow-moving and low gross margin return on investment products from our assortment that didn't align with our core pursuits, causing a short-term softening of sales. However, this allowed us to free up working capital dollars to buy into the product and brands these two departments that now align to our core pursuits of hunting, fishing, shooting, and personal protection. Newness for the summer season is now landing in our stores with a focus on quality and value with name brands that customers recognize. We will continue to build out these two complementary categories to provide a full solution for our passionate outdoor customers. Our e-commerce business outperformed again, with e-com driven sales up over 6% in the quarter. This underscores the strength of our omni-channel model and the growth potential in our core pursuits.

[Paul Stone, CEO at Sportsman's Warehouse]

Because firearms, and in certain states, ammunition require in-store pickup, our e-com business naturally drives traffic into our stores. We continue to strategically leverage this advantage to support growth across both digital and store sales. We once again saw improvements in both units per transaction and average order value driven by our merchandising strategy, better in-stocks, and our strategic shift to solution selling. Close management of inventory remains a key priority in our transformation strategy. I'm pleased with how the team is timing our flow of merchandise to ensure we are regionally and seasonally relevant to meet shopper demand. This will continue to be a focus as we expect to improve turns and inventory efficiency in 2026. On our call last quarter, we outlined the next phase of our business transformation, centering on strengthening our leadership position in our core pursuits of hunting, fishing, and shooting, and personal protection.

[Paul Stone, CEO at Sportsman's Warehouse]

These are the core pursuits that make up the DNA of Sportsman's Warehouse. During the first quarter, we made meaningful improvements to our website to enhance the online fishing experience. Early results have been encouraging, contributing to strong e-commerce sales growth in the quarter. We will continue to integrate content with commerce to help anglers more easily build their fishing solution. With participation rates continuing to grow each year, we believe this category represents significant growth upside for the business. Additionally, during the first quarter, we entered into a partnership with one of the top fishing and hunting lifestyle brands, Field & Stream. Together, we are working with leading fishing influencers to create shareable content that enhances our brand exposure, showcases trending new products, and drives traffic to Sportsman's Warehouse. While we are in the early stages of this partnership, we are encouraged by the early results.

[Paul Stone, CEO at Sportsman's Warehouse]

Turning now to our firearm solution bundling strategy. We made solid progress in Q1 on this initiative with a full solution offering now available online for top-selling products. Many of our customers are first-time firearm owners, so offering carefully selected pairings like gun safes, hearing and eye protection, and our firearm service plan, helping first-time buyers feel confident in their initial purchase decisions. That experience then carries into our stores, where customers can build on those pairings with support from our experienced outfitters, tailored to local needs and pursuits. This experience supports responsible ownership while increasing the attachment and basket size. By combining curated e-commerce pairings with in-store experience, we believe we can expand gross margins in the hunting and shooting sports category while reinforcing our leadership in these key pursuits.

[Paul Stone, CEO at Sportsman's Warehouse]

Reinventing our loyalty program is a key step in Sportsman's Warehouse effort to build a more durable, higher-value customer model, and our partnership with Epsilon, a leading loyalty and personalization consultancy, marks an important move forward in that transformation. The initiative is designed to improve retention, increase customer lifetime value, and drive more efficient marketing while supporting stronger repeat purchase behavior and a more disciplined promotional strategy. Looking ahead, the U.S. consumer remains under pressure, with high fuel costs adding additional weight to discretionary spending. We feel optimistic about our position in the market, our curated assortment of iconic American brands, and our summer readiness, where we will celebrate and showcase red, white, and blue for America's 250th anniversary. Our focus remains on driving profitable growth, disciplined management of inventory, generating positive free cash flow to pay down debt, and executing against our strategic priorities.

[Paul Stone, CEO at Sportsman's Warehouse]

With that, I'll turn the call over to Jennifer.

[Jennifer Fall Jung, CFO at Sportsman's Warehouse]

Thank you, Paul. Good afternoon, everyone. Net sales for the first quarter were $256.1 million, a 2.8% increase from $249.1 million in the same period last year. Our same-store sales in Q1 increased 2.1% versus last year. This represents a solid start to the year and reflects continued progress against our strategic and operational priorities. Our performance was driven by 6.3% same-store sales growth in our hunting, shooting sports department, led by firearms, ammunition, and less lethal personal protection. Fishing also continues to perform, growing 6% in Q1. This is a key category where we see significant growth upside for the business. Our other categories declined in Q1, partially offset by overall growth. Gross margin for the quarter was 29.6%, compared to 30.4% in Q1 last year.

[Jennifer Fall Jung, CFO at Sportsman's Warehouse]

The decline was primarily driven by category mix, with a higher penetration of firearms and ammunition and lower sales in our higher-margin categories. SG&A expenses were $93.9 million, or 36.7% of net sales, versus $95.3 million, or 38.2%, in Q1 last year. The decrease in SG&A expense was driven by disciplined cost management, overall lower payroll expense, and decreased depreciation. Net loss for the first quarter was $21.8 million, or $-0.56 per diluted share, compared with a net loss of $21.3 million, or $-0.56 per diluted share in the first quarter of the prior year. Adjusted net loss in the first quarter was $15.1 million, or $-0.39 per diluted share, compared with adjusted net loss of $15.6 million, or $-0.41 per diluted share in the first quarter of last year.

[Jennifer Fall Jung, CFO at Sportsman's Warehouse]

Adjusted EBITDA for the first quarter was $-8.1 million, compared with adjusted EBITDA of $-9 million in the first quarter of 2025, an improvement of $900,000. Turning now to the balance sheet. Total inventory at the end of Q1 was $387.1 million, down $25.1 million, or 6.1%, versus Q1 of last year. The decrease in year-over-year inventory is part of our ongoing inventory efficiency strategy, including the refinement of receipt timing to match seasonal demand. We expect average inventory to be lower throughout the year as we improve seasonal inventory timing and eliminate slow-moving inventory, resulting in better overall turns. We continue to expect to end the year with less total inventory than 2025. In regards to liquidity, we ended the first quarter with a net debt balance of $148.4 million and a total liquidity of $116.7 million.

[Jennifer Fall Jung, CFO at Sportsman's Warehouse]

Our liquidity position remains strong, and we continue to actively manage working capital to ensure flexibility as we navigate through the year. Tight management of variable expenses and inventory efficiency remain a key focus. We remain committed to generating positive free cash flow and using excess cash to reduce debt and strengthen the balance sheet with debt reduction as our top capital allocation priority. Finally, let me speak to our full year guidance. Despite the continued pressure on the U.S. consumer, which is weighing on our camping and soft line departments and elevated fuel prices, we are reiterating our guidance for the full year. We continue to expect fiscal 2026 net sales to range between down 1% to up 2% compared to last year. Adjusted EBITDA to be between $30 million and $36 million, driven by better gross margin performance, ongoing expense management, and improved inventory discipline.

[Jennifer Fall Jung, CFO at Sportsman's Warehouse]

Capital expenditures between $20 million and $25 million, primarily relating to technology investments to improve store service and merchandising productivity, as well as normal store maintenance. To reiterate, our priorities for 2026 are driving profitable comp store sales growth through the execution of our strategic initiatives, managing our inventory efficiently, and using excess free cash flow to pay down our debt and strengthen our balance sheet. That concludes our prepared remarks for today. I will now turn the call back to the operator to facilitate questions.

[Operator]

Thank you. As a reminder, to ask a question, you will need to press star one one on your telephone. To remove yourself from the queue, you may press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Anna Glaessgen of B. Riley Securities. Your line is open, Anna.

[Anna Glaessgen, Analyst at B. Riley Securities]

Hi. Good afternoon. Thanks for taking my questions.

[Jennifer Fall Jung, CFO at Sportsman's Warehouse]

Yeah.

[Anna Glaessgen, Analyst at B. Riley Securities]

Hey. I'd love to dig a little deeper into the trends you're seeing in Hunt and Shoot. Obviously, you called out, there is some event driven demand that's helping the category. With the data you have in front of you, could you maybe share to what extent is underlying strengthening of the category, maybe you guys gaining share versus maybe the event driven benefit? Thanks.

[Jennifer Fall Jung, CFO at Sportsman's Warehouse]

Thanks, Anna. This is Jennifer. What we saw in Q1, as we talked about a little bit on our previous call about February, we did see strength across the quarter in this category. February in and of itself, we actually walked away from one of our events to really focus on strategic profitable growth. February wasn't as strong as March and April combined. For March and April, we do look at them combined simply because of the Easter shift. They did outperform prior year in April and March combined. As we are looking towards May, what we are seeing is a little bit more of the stabilization. I think as we talked about before, sometimes you see the event driven or external driven demand that we do see a little bit of a stabilization post that, and we are experiencing that right now.

[Jennifer Fall Jung, CFO at Sportsman's Warehouse]

Feel really good about where the category is, how it performed in Q1, and what it'll do in Q2.

[Anna Glaessgen, Analyst at B. Riley Securities]

Got it. That makes sense. I guess that leads into the next question. Can you share, or put a little bit more of a finer point on the trends you're seeing overall in May?

[Jennifer Fall Jung, CFO at Sportsman's Warehouse]

Yeah, we're seeing, we still have a very healthy business. Hunt and Shoot are really driving our Q1 business. We have a big month of June ahead of us. You could look at our quarters, that's one of our largest months of the quarter. With Father's Day playing into that's who our customer is, and that's where we have a lot of advertising and promotional events to really make sure we deliver on June as well.

[Anna Glaessgen, Analyst at B. Riley Securities]

Great. Thanks. I'll hop back in the queue.

[Operator]

Thank you. Our next question comes from the line of Mark Smith of Lake Street. Please go ahead, Mark.

[Mark Smith, Analyst at Lake Street]

Hi, guys. I wanted to dig into gross profit margin a little bit more here. Down 80 bps. Can you just talk about maybe how much of that was driven by mix, and then any other pressures that you're seeing?

[Jennifer Fall Jung, CFO at Sportsman's Warehouse]

Yeah. The majority of it was driven by mix. There is a little bit of pressure in some of the other categories. As we look across the board, as we're starting to take our marks a lot sooner than we have historically. Across the other categories, saw a little bit of pressure, but really it was mix, having so much penetrated in Hunt and Shoot.

[Mark Smith, Analyst at Lake Street]

Okay. I also wanted to ask about e-commerce. Trends there look really solid. Just curious if you can give us maybe any more insight about how that's continuing to trend, how you feel about the progression of, and maybe where you think it can go over time.

[Jennifer Fall Jung, CFO at Sportsman's Warehouse]

Yeah. We've been really putting our elbow against our e-commerce business. We feel it's really well positioned. The team did a lot of work from an experiential perspective on the fish business, and we're seeing great results from that. We're also focused on our search engine. We think there's work to do there, but we have some great plans in place to continue to drive that. I'll let Paul speak a little bit more to it, but we do have a lot of confidence in our e-com business, but we do think that some of the initiatives that we've put into place are what's helping drive that business.

[Paul Stone, CEO at Sportsman's Warehouse]

Yeah, I think overall, Mark, we know that we need to invest in it, and really in a couple different areas. One is fish, and we know that we have a lot of upside there from a penetration and what it looks like. The ease of shop for the consumer. We made some significant changes over the last quarter. Even really digging into the fly component, which is extremely Well, it's a big part of our business due to our location where we have the majority of our stores. The team over the last three weeks really went back and refined what that shopping experience can look like for the consumer. We continue to lean into it. We've under-invested in the past in our e-com business.

[Paul Stone, CEO at Sportsman's Warehouse]

We're both, I think, looking at it from a fish and then from a solution standpoint on how we attach and as we get into the hunt season this year. We expect to have a much better product on our e-commerce platform to allow us to have solution-based selling for the first time, to really take pressure off of our outfitters in the stores, those consumers flow to the stores, and will allow for solution-based selling online versus transactional selling that we've done in the past. We'll continue to lean into it. We think the beauty of our business is that 70%, 75% of that consumer flows to the store to create traffic, and it starts online. The work's been done in the stores and putting them in a better position and allowing our outfitters to be able to serve the customers better.

[Paul Stone, CEO at Sportsman's Warehouse]

We've got to do a better job on the initial experience, and I think what we've seen already from overall fish, and then in particular, fly, with the adjustments we've made, and then on schedule by the time we get into hunt season to have a solution base for our firearm and our hunt business as well.

[Mark Smith, Analyst at Lake Street]

Perfect. The last category I wanted to ask about was just camping. Curious if you can kind of rank or talk about kind of the moving parts there, from weather, pressure on the consumer, maybe your planned drawdown on the inventory and competition, kind of what's happening there, and any focus or work that you think you could do to drive up camping.

[Paul Stone, CEO at Sportsman's Warehouse]

Yeah, inventory's in a good position. I think I mentioned it last quarter. The way the team has bought, I think we're positioned well. It's been soft, the weather, and it's been cold to start the summer, as well as wet, in comparison to last year and the historical data that you see there. It's been a little soft to start. I think as we went and moved out of some of our low GMROI subcategories, in particular in camp, to where we could reinvest those back into our pursuits around hunting, fishing, and personal protection shooting. We've invested those dollars into the categories that resonate with the customer. As you're getting out of some of the subcats, it just didn't work, but we tied up. If you're coming against that, you're comping that.

[Paul Stone, CEO at Sportsman's Warehouse]

We feel really good with what the inventory position looks like for summer and with little to no risk as we get out of that product like we've had in the last two to three years in the past, or we just continue to work to try to get out of these categories. I feel really good with what the team's done to position ourselves well for the future.

[Mark Smith, Analyst at Lake Street]

Perfect. Thank you.

[Operator]

Thank you. Our next question comes from the line of Matt Koranda of Roth Capital Partners. Your line is open, Matt.

[Joseph Gonzales, Analyst at Roth Capital Partners]

Good afternoon, it's Joseph on for Matt. I just want to see if you guys could talk about just SG&A here. It's nice to see the continued leverage on this line. Just want to see how the team's thinking about further savings on this line item. It sounds like payroll efficiency was a driver, and wanted to know if there's any other labor efficiencies we should be thinking about.

[Jennifer Fall Jung, CFO at Sportsman's Warehouse]

Hey, thanks for the question. Yeah, we are continuing, always focused on leveraging our SG&A. What you saw in this quarter was really the favor of building the payroll. As we've gotten more efficient with our inventory, as well as we've continued to focus on our store labor, we saw a nice benefit there. That was partially offset by some bonus accrual that we did this quarter that we didn't have last quarter. That will be the one headwind as we move through the year from an SG&A perspective will be the bonus accrual just year-over-year, assuming we continue to perform. Payroll is the biggest component of the savings there. It's not in SG&A, but I'll just go ahead and speak to it. It's more in the margin component. We're seeing some headwinds in fuel, but we're able to offset those with some of our inventory efficiency.

[Jennifer Fall Jung, CFO at Sportsman's Warehouse]

Just to kind of keep it straight, that is in margin, not in SG&A, but expense management is all one bucket, so just thought I'd kind of key on that one, too.

[Paul Stone, CEO at Sportsman's Warehouse]

I think the thing I would add to it is the efficiency of the flow of inventory and whether it's through a distribution center or whether it be in the stores and kind of the ups and downs that we've had or front-loading or back-loading as we come into different seasons. The smoothing of that has allowed us to look at labor a lot differently than we have in the past, and really, the operations team in the field did a great job as far as being able to align sales per labor hour to what they were seeing in the business. Feel good, and I think the core of that is how we're managing inventory and efficiency we're getting from inventory.

[Joseph Gonzales, Analyst at Roth Capital Partners]

Got it. If we could just hop onto inventory. In your prepared remarks, you mentioned that you're expecting a year-over-year decline on the full year in inventory. Just wanted to see, where is that coming from? Should we be thinking about it as a quicker seasonal clearance as a factor, or is there anything else driving that tighter inventory management?

[Jennifer Fall Jung, CFO at Sportsman's Warehouse]

I wouldn't say it's one silver bullet. It's multiple things that are really helping us here. It's getting the right inventory into the right stores or the right place that really helps our turns. It is a benefit of us making sure that we are taking our seasonal marks when we should be taking our seasonal marks, which I don't think historically we've been as great at doing so. It's also just looking at our SKUs, which SKUs aren't moving quickly, and how do we look at the tails and not actually go deep into those, but go deep into the quicker turning categories. All those things kind of add up to really where we're getting efficiency. Again, it's not one thing.

[Jennifer Fall Jung, CFO at Sportsman's Warehouse]

It's just we're constantly looking at it, and we know that that takes up working capital, so we want to be as efficient with it as possible.

[Joseph Gonzales, Analyst at Roth Capital Partners]

Got it. We'll go ahead and take the rest offline. Thank you.

[Jennifer Fall Jung, CFO at Sportsman's Warehouse]

Thanks.

[Operator]

Thank you. I would now like to turn the conference back to Paul Stone for closing remarks. Sir?

[Paul Stone, CEO at Sportsman's Warehouse]

Thank you for joining the call today, and thank you to all the passionate outfitters around the country for their commitment to Sportsman's Warehouse. Together, we look forward to providing our customers with great gear and exceptional service. Thank you.

[Operator]

This can close today's conference call. Thank you for participating. You may now disconnect.

Participants

Executives

• Jennifer Fall Jung, CFO
• Paul Stone, CEO
• Riley Timmer, VP of Strategic Programs and Investor Relations

Analysts

• Anna Glaessgen, Analyst at B. Riley Securities
• Joseph Gonzales, Analyst at Roth Capital Partners
• Mark Smith, Analyst at Lake Street