Sportsman's Warehouse (SPWH) Q3 2026 earnings summary

Executive summary

• Achieved third consecutive quarter of positive same-store sales growth, with Q3 comps up 2.2% year-over-year, outperforming industry benchmarks despite a challenging consumer environment.

• Net sales for Q3 were $331.3 million, up 2.2% compared to the prior year, driven by strong performance in hunting, shooting sports, and fishing categories.

• E-commerce sales grew over 8% and comprised 19% of total sales for the quarter.

• Opened a new store in Surprise, Arizona, with a unique personal protection-focused format; no further store openings planned for 2025 or 2026.

• Strategic focus on inventory precision, local relevance, and personal protection categories contributed to improved results and market share gains.

Financial highlights

• Q3 gross margin improved by 100 basis points to 32.8%, aided by healthier inventory, lower freight, and improved shrink.

• Adjusted net income for Q3 was $3 million ($0.08 per diluted share), up from $1.4 million ($0.04 per share) last year.

• Adjusted EBITDA for Q3 was $18.6 million, a 13% increase and a 50 basis point improvement as a percentage of net sales.

• SG&A expenses were $104.5 million (31.5% of net sales), up from 30.8% last year, reflecting reinvestment in customer-facing areas and digital marketing.

• Net loss for the nine months ended November 1, 2025, was $28.3 million, compared to $24.3 million last year.

Outlook and guidance

• Full-year net sales guidance revised to be flat to slightly up, reflecting a tough Q4 environment and pressured U.S. consumer.

• Adjusted EBITDA guidance for fiscal 2025 set at $22–$26 million due to margin pressure from increased promotions and lower Q4 sales.

• Expect to end the year with inventory below $330 million and capital expenditures under $25 million, focused on technology and store maintenance.

• Excess cash flow will be used to repay outstanding debt.