Sportsman's Warehouse Holdings Earnings Call Transcripts
Fiscal Year 2026
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Delivered 1% sales growth for FY2025, with strong gains in core categories and e-commerce. Q4 margins declined due to mix and promotions, but inventory and debt improved. FY2026 guidance anticipates flat to modest sales growth, EBITDA improvement, and continued focus on inventory and debt reduction.
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Q3 saw 2.2% same-store sales growth and improved gross margin, driven by strong hunting, shooting, and fishing categories. Full-year guidance was revised downward due to Q4 headwinds, but inventory and debt reduction remain on track.
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Second quarter saw 2.1% same-store sales growth and 1.8% net sales increase, led by hunting, shooting sports, and fishing. Gross margin improved, but net loss widened due to mix and freight costs. Full-year guidance was raised, with a focus on inventory efficiency and debt reduction.
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First quarter sales rose 2% year-over-year, marking the first positive comp in nearly four years, with strong growth in firearms and fishing. Gross margin improved, inventory was strategically increased to mitigate tariffs, and guidance for 2025 was reiterated despite macroeconomic headwinds.
Fiscal Year 2025
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Q4 saw improved sales trends, gross margin expansion, and a return to positive adjusted net income. Inventory and debt were reduced, e-commerce grew double digits, and 2025 guidance targets comp sales growth, margin improvement, and further debt paydown.
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Q3 saw a 4.8% sales decline but improved gross margin and positive comps in fishing, camping, and e-commerce. Inventory and expense management remain priorities, with FY2024 guidance reaffirmed and positive free cash flow expected.
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Q2 net sales fell 6.7% year-over-year with same-store sales down 9.8%, but fishing saw 6% comp growth and e-commerce rose 3%. Inventory was reduced 23.8% per store, and a $20M investment in core inventory is planned. Positive free cash flow is expected for 2024, with debt paydown prioritized.
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Q1 2024 saw net sales decline 8.7% year-over-year and a 13.5% drop in same-store sales, with fishing as a bright spot amid broad category softness. Expense reductions and inventory management improved margins, and management remains confident in full-year guidance, expecting stronger performance in the back half.