Sportsman's Warehouse (SPWH) Q4 2025 earnings summary

Executive summary

• Completed phase one of a transformation strategy focused on omnichannel retail, store resets, and inventory management, resulting in improved customer experience and operational efficiency.

• Hired experienced leaders for marketing, e-commerce, and merchandising, driving better traffic and inventory outcomes.

• Achieved positive cash flow, reduced net debt by $27.3 million year-over-year, and ended with significantly cleaner inventory and higher liquidity.

• Outperformed industry trends and adjusted NICS data in firearms sales, with unit growth despite lower average prices due to consumer trade-down, indicating market share gains.

• E-commerce sales grew double digits, now exceeding 17% of total business, with strong omni-channel integration.

Financial highlights

• Q4 net sales were $340.4M, down 0.9% year-over-year on a comparable 13-week basis.

• Q4 same-store sales declined 0.5%, a 520 bps improvement over last quarter and a significant improvement from -12.8% last year.

• Q4 adjusted EBITDA was $14.6M, up nearly 300% from $5.3M last year.

• Q4 adjusted net income was $1.6M, compared to an adjusted net loss of $7.5M last year.

• Gross margin improved to 30.4% from 26.8% year-over-year, driven by better apparel and footwear performance.

• Full-year sales were $1,197.6M, with adjusted EPS of -$0.53.

• Operating expenses for the year were $20M lower than prior year.

Outlook and guidance

• Fiscal 2025 net sales expected to range from -1% to +3.5% over last year.

• Adjusted EBITDA guidance for 2025 is $33M–$45M.

• CapEx for 2025 projected at $20M–$25M, focused on technology and store maintenance.

• Plans to open one new store in Surprise, Arizona in 2025.

• Expects positive same store sales growth in 2025 despite macroeconomic headwinds.