Sportsman's Warehouse Holdings, Inc.

Second-quarter net sales were $295.6 million, up 0.6% from $293.9 million a year ago, and same-store sales were essentially flat. Gross margin was 32.5% versus 32.0% last year; SG&A was $97.1 million, or 32.9% of sales, versus $97.2 million, or 33.1% last year. Net loss was $4.4 million, or $0.11 per diluted share, compared with a $7.1 million loss, or $0.18 per diluted share, last year; adjusted net loss was $3.1 million, or $0.08 per diluted share, versus $4.7 million, or $0.12 per diluted share. Adjusted EBITDA was $8.7 million versus $8.3 million last year. Inventory ended Q2 at $399 million, down $44.5 million, or 10%, year over year; net debt was $169 million, down $26 million, and total liquidity was $105 million. For fiscal 2026, the company reiterated net sales guidance of down 1% to up 1%, adjusted EBITDA of $30 million to $36 million, and capex of $20 million to $25 million.

Paul Stone said the company is moving with urgency to meet a pressured customer through a more promotional cadence and a sharper value proposition, while staying focused on core pursuits like hunting, fishing, and shooting sports. He emphasized that in-stocks have improved from about 50% two years ago to over 80% today, inventory is the healthiest in many years, and e-commerce has now grown faster than total company sales for nine straight quarters. His tone was confident and constructive, particularly about the back half, saying the company is better positioned than it has been in years.

Jennifer Fall Jung highlighted the quarter’s financial improvement: sales of $295.6 million, gross margin of 32.5%, SG&A leverage, and adjusted EBITDA of $8.7 million. She said the gross margin benefit came from disciplined inventory management, lower freight costs, and a one-time tariff refund that was used to reinvest in consumer value. On the balance sheet, she noted inventory of $399 million, net debt of $169 million, liquidity of $105 million, and that the company extended the maturity of its $45 million ABL term loan to June 2031 and its revolving credit facility to the same date with $315 million of commitments. She reiterated that debt reduction remains the top capital allocation priority and that year-end inventory should be lower than 2025.

Analysts focused on whether camp, apparel, and other softer categories can recover, how long the heavier promotional environment may last, and whether tariff refunds meaningfully affected margins. Management said the tariff benefit was not material, but it helped them offer more value in a highly discounted market, and they expect promotional pressure to persist because elevated fuel prices continue to squeeze the consumer. On softer categories, they said the assortment cleanup is largely done, August trends improved, and camp should improve first in Q3 with apparel following in Q4. They also said firearms and ammo remain resilient, with consumers still spending on those discretionary pursuits even as they trade down in some lower-priority categories.