Sportsman's Warehouse (SPWH) Q2 2027 earnings summary

Executive summary

• Q2 2026 net sales were $295.6 million, up 0.6% year-over-year, with same-store sales flat and hunting/shooting sports driving growth; e-commerce comprised 19% of total sales and grew nearly 3%.

• Net loss improved to $4.4 million from $7.1 million YoY; adjusted net loss was $3.1 million versus $4.7 million prior year.

• Inventory was reduced by over $44 million year-over-year, improving working capital and positioning for the back half of the year.

• No new store openings planned for FY 2026; focus is on closing underperforming stores, investing in technology, and omni-channel improvements.

• Strategic initiatives include loyalty program reinvention, targeted assortment for key seasonal periods, and CEO retention bonus tied to EBITDA targets.

Financial highlights

• Q2 2026 net sales: $295.6 million (+0.6% YoY); gross profit: $96.0 million (32.5% margin); SG&A: $97.1 million (32.9% of sales).

• Net loss: $4.4 million (-$0.11 per share), improved from $7.1 million loss (-$0.18 per share) YoY; adjusted net loss: $3.1 million (-$0.08 per share).

• Adjusted EBITDA: $8.7 million (2.9% margin), up from $8.3 million (2.8% margin) YoY.

• Inventory reduced by $44.5 million YoY (down 10%), reflecting disciplined management.

• Interest expense decreased 12.3% YoY to $3.3 million due to lower debt.

Outlook and guidance

• Fiscal 2026 net sales expected to range from down 1% to up 2% YoY; adjusted EBITDA guidance: $30–36 million.

• Capital expenditures projected at $20–25 million, focused on technology and store productivity; no new store openings planned.

• Promotional environment expected to remain elevated due to ongoing consumer pressure and macroeconomic uncertainties.

• Approximately five underperforming stores expected to close within the next year.

• E-commerce and omni-channel growth remain strategic priorities.