Sportsman's Warehouse (SPWH) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2024 were $288.7 million, down 6.7% year-over-year, with same-store sales declining 9.8% due to inflationary pressures and lower store traffic, partially offset by new store openings and e-commerce growth.

• Net loss widened to $5.9 million for the quarter, compared to $3.3 million last year, as gross margin fell to 31.2% from 32.6% due to increased shrink, markdowns, and inventory methodology changes.

• Adjusted EBITDA for Q2 2024 was $7.4 million, down from $10.9 million in Q2 2023, reflecting lower sales and margin pressure.

• Strategic transformation initiatives included store resets, employee rebranding, and a focus on service-driven culture and operational efficiency.

• No new store openings are planned for the remainder of 2024 as the focus shifts to cost control, inventory reduction, and debt repayment.

Financial highlights

• Q2 2024 net sales: $288.7 million (down 6.7% year-over-year); same-store sales down 9.8%; first half net sales: $533.0 million (down 7.6%).

• Q2 2024 net loss: $5.9 million; adjusted net loss: $5.3 million; diluted loss per share: $(0.16); adjusted diluted loss per share: $(0.14).

• Q2 2024 gross margin: 31.2% (down from 32.6%); first half gross margin: 30.7% (down from 31.3%).

• Q2 2024 Adjusted EBITDA: $7.4 million (down from $10.9 million); margin: 2.6%.

• E-commerce sales grew 3% and exceeded 19% of total sales, driven by hunting and fishing.

Outlook and guidance

• Fiscal 2024 net sales expected between $1.13 billion and $1.17 billion; adjusted EBITDA guidance is $20–$35 million.

• Positive free cash flow is anticipated for 2024, with proceeds intended for debt reduction.

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

• No new store openings planned for the remainder of 2024; focus remains on cost reduction and operational efficiency.

• Cautious outlook for the back half of 2024 due to ongoing macroeconomic pressures and tough year-over-year comparisons.