Sportsman's Warehouse Holdings, Inc.

Net sales for Q1 were $256.1 million, up 2.8% from $249.1 million a year ago. Same-store sales increased 2.1%. Gross margin was 29.6% versus 30.4% last year, with the decline primarily tied to category mix and higher firearms/ammunition penetration. SG&A was $93.9 million, or 36.7% of sales, down from $95.3 million, or 38.2%. Net loss was $21.8 million, or ($0.56) per diluted share, versus a net loss of $21.3 million, or ($0.56), last year. Adjusted net loss was $15.1 million, or ($0.39), versus $15.6 million, or ($0.41), and adjusted EBITDA was a loss of $8.1 million versus a loss of $9.0 million, an improvement of $900 thousand. Inventory ended Q1 at $387.1 million, down $25.1 million or 6.1% year over year. Net debt was $148.4 million and total liquidity was $116.7 million. For fiscal 2026, management reiterated net sales guidance of down 1% to up 2%, adjusted EBITDA of $30 million to $36 million, and capex of $20 million to $25 million.

Paul Stone said the company is strengthening its position around its core pursuits of hunting, fishing, shooting sports, and personal protection. He emphasized improving assortment, expanding solution selling online and in stores, and tightening inventory flow to support profitable growth. His tone was constructive but measured, acknowledging consumer pressure and high fuel costs while expressing confidence in summer readiness, e-commerce, and the company’s transformation plan.

Jennifer Fall Jung highlighted the quarter’s hard numbers and the main drivers behind them: sales of $256.1 million, gross margin of 29.6%, SG&A of $93.9 million, and an adjusted EBITDA loss of $8.1 million. She said the margin decline was mainly mix-driven, while SG&A improved due to payroll and store labor efficiency, partly offset by a bonus accrual that will remain a year-over-year headwind. On the balance sheet, she noted inventory of $387.1 million, net debt of $148.4 million, and liquidity of $116.7 million, and reiterated that debt reduction remains the top capital allocation priority.

Analysts pressed management on whether hunting/shooting strength was being driven by events or by underlying demand, and Jennifer said Q1 showed real strength but that some event-driven demand normalized later in the quarter. Questions also focused on gross margin, e-commerce progress, camping softness, SG&A savings, and inventory discipline. Management said gross margin pressure was mostly mix-related, e-commerce is underinvested but improving through better online fish experiences and solution-based firearm/hunt selling, and camping remains soft due to weather plus intentional assortment changes away from low-margin items.