Sportsman's Warehouse (SPWH) investor relations material

Executive summary

• Net sales for Q1 2026 were $256.1 million, up 2.8% year-over-year, with same-store sales increasing 2.1%.

• Growth was driven by strong performance in hunting, shooting sports, and fishing, with e-commerce sales rising over 6% and comprising 23% of total sales.

• Inventory was reduced by 6.1% year-over-year, supporting improved efficiency and working capital.

• Adjusted EBITDA improved to $(8.1) million from $(9.0) million year-over-year.

• Focus remains on profitable growth, inventory discipline, technology investments, and debt reduction, with no new store openings planned for fiscal 2026.

Financial highlights

• Gross margin was 29.6%, down from 30.4% in Q1 2025, mainly due to higher penetration of lower-margin firearms and ammunition.

• SG&A expenses were $93.9 million (36.7% of sales), down from $95.3 million (38.2%) last year, reflecting payroll and cost management.

• Net loss was $21.8 million ($-0.56 per share), compared to $21.3 million ($-0.56) last year; adjusted net loss improved to $15.1 million ($-0.39 per share) from $15.6 million ($-0.41).

• Adjusted EBITDA was $(8.1) million, an improvement of $900,000 year-over-year.

• Inventory at quarter-end was $387.1 million, down $25.1 million year-over-year.

Outlook and guidance

• Fiscal 2026 net sales expected to range from down 1% to up 2% versus last year, with same-store sales guidance between -1.0% and +2.0%.

• Adjusted EBITDA guidance is $30–36 million, supported by gross margin improvement and expense management.

• Capital expenditures projected at $20–25 million, focused on technology and store maintenance.

• No new store openings planned for fiscal 2026; focus on closing underperforming stores and debt reduction.

• Commitment to positive free cash flow and debt reduction remains a top priority.