Sportsman's Warehouse (SPWH) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2024 were $244.2 million, down 8.7% year-over-year from $267.5 million, with same-store sales declining 13.5% amid pressured consumer discretionary spending and a challenging macroeconomic environment.

• Gross margin improved to 30.2% from 29.9% year-over-year, driven by a favorable mix in the fishing department.

• Net loss for Q1 was $18.1 million (-$0.48 per diluted share), compared to a net loss of $15.6 million (-$0.42 per diluted share) in the prior year.

• Adjusted EBITDA for Q1 was -$8.7 million, compared to -$7.8 million in Q1 2023.

• The company is focused on expense management, inventory control, and debt reduction, with no new store openings planned for 2024.

Financial highlights

• Gross profit was $73.8 million (30.2% of sales), up as a percentage of sales from 29.9% last year.

• SG&A expenses were $94.4 million (38.6% of sales), down in absolute dollars due to payroll and pre-opening expense reductions, but up as a percentage of sales.

• Interest expense increased to $2.9 million from $2.0 million year-over-year due to higher borrowings and rates.

• Adjusted EBITDA margin was (3.6)%.

• Weighted average shares outstanding: 37.6 million.

Outlook and guidance

• Fiscal 2024 net sales are projected between $1.15 billion and $1.23 billion.

• Adjusted EBITDA for 2024 is expected in the range of $45 million to $65 million.

• CapEx for 2024 is forecasted at $20–$25 million, focused on technology, store maintenance, and productivity.

• No new store openings are planned for 2024 as the company focuses on cost reductions and inventory management.

• Management remains confident in full-year guidance, expecting improved profitability in the back half of the year.