Sportsman's Warehouse (SPWH) Q2 2026 earnings summary

Executive summary

• Same store sales grew 2.1% year-over-year, marking the second consecutive quarter of positive comps, driven by hunting, shooting sports, and fishing categories despite consumer headwinds.

• Net sales for Q2 2025 increased 1.8% to $293.9 million, with e-commerce up 3% and comprising over 19% of total sales.

• Gross profit rose 4.4% to $93.9 million, with gross margin improving to 32.0% from 31.2% year-over-year.

• Net loss for Q2 was $7.1 million (-$0.18 per share), compared to $5.9 million (-$0.16) last year.

• Strategic focus on inventory precision, local relevance, digital-first marketing, and personal protection is yielding positive results.

Financial highlights

• Gross margin improved by 80 basis points to 32.0% of net sales, aided by healthier inventory and higher fishing sales.

• SG&A expenses were $97.2 million, or 33.1% of net sales, up from 32.7% last year, reflecting investments in store labor and digital marketing.

• Adjusted EBITDA rose to $8.3 million (2.8% margin), up from $7.4 million (2.6% margin) year-over-year.

• Adjusted net loss was $4.7 million (-$0.12 per share), an improvement from $5.3 million (-$0.14) last year.

• Interest expense increased to $3.8 million from $3.2 million year-over-year.

Outlook and guidance

• Full-year 2025 net sales guidance improved to a range of flat to up 3.5%.

• Adjusted EBITDA guidance reaffirmed at $33–$45 million; capital expenditures expected at $20–$25 million, focused on technology and store maintenance.

• Inventory expected to decline below last year’s level by year-end, with peak debt and inventory reached in Q2.

• Only one new store opening planned for fiscal 2025, with focus on debt repayment and cost control.

• Management expects modest gross margin improvements for the remainder of fiscal 2025, but notes ongoing macroeconomic and tariff-related risks.