Sportsman's Warehouse (SPWH) Q3 2025 earnings summary

Executive summary

• Q3 2024 net sales declined 4.8% year-over-year to $324.3 million, with same-store sales down 5.7% due to inflationary pressures and lower store traffic, but positive comps in fishing, camping, and Gift Bar categories.

• Gross margin improved to 31.8% from 30.3% last year, driven by better product margins in apparel and footwear, though aggressive promotions and inventory cleanup pressured margins.

• Net loss for Q3 2024 was $0.4 million (-$0.01 per share), improved from a $1.3 million loss last year; adjusted net income was $1.3–$1.4 million ($0.04 per share).

• E-commerce sales exceeded 18% of total sales in Q3, with record transactions during Black Friday and Cyber Week, reflecting strong omni-channel growth.

• Disciplined expense management, inventory reduction, and cost controls prioritized to generate positive free cash flow and pay down debt.

Financial highlights

• For the first nine months of 2024, net sales were $857.2 million, down 6.6% year-over-year; same-store sales declined 9.4%.

• Gross profit for the nine months was $266.9 million (31.1% margin), slightly up from 31.0% last year.

• SG&A expense for Q3 was $100 million (30.8% of sales), flat in dollars but up as a percentage due to lower sales.

• Net loss for the nine months was $24.3 million, or $(0.65) per share; adjusted EBITDA for Q3 was $16.4 million, up slightly year-over-year.

• Cash and cash equivalents at quarter end were $2.7 million, with $148.1 million available under credit facilities.

Outlook and guidance

• Fiscal 2024 net sales expected between $1.18 billion and $1.2 billion; adjusted EBITDA guidance of $23–$29 million.

• Inventory targeted to end below $350 million; capital expenditures projected at $17–$20 million, focused on technology and maintenance.

• No new store openings planned for the remainder of 2024; one new store expected in 2025.

• Positive free cash flow expected for the full year, with excess cash directed to debt reduction.