Sportsman's Warehouse (SPWH) Q4 2026 earnings summary

Executive summary

• Q4 and full year 2025 results exceeded revised expectations, with positive same-store sales growth for the first time since 2020, marking a key milestone in the turnaround strategy.

• Achieved full-year same store sales growth of 1%, with improved inventory productivity and positive free cash flow.

• Sales trends turned positive in the back half of Q4, aided by a more promotional holiday strategy and strong performance in core pursuits.

• Strategic focus on core categories—hunting, shooting sports, fishing, and personal protection—drove market share gains and new customer acquisition.

• Strengthened balance sheet by reducing inventory by $29.1 million (8.5%) and net debt by 6.1%.

Financial highlights

• Full year 2025 net sales and comparable store sales grew 1% year-over-year, the first positive comps since 2020; full-year net sales reached $1,209.2 million.

• Q4 net sales were $334.9 million, down 1.6% year-over-year; comparable store sales declined 1.8%.

• Q4 gross margin was 28.4%, down from 30.4% last year; full-year gross margin steady at 30.9%.

• Q4 net loss was $21.7 million ($0.56 per share); adjusted net loss was $3.9 million ($0.10 per share).

• Adjusted EBITDA for the year was $27.5 million, slightly below prior year but above revised guidance.

Outlook and guidance

• 2026 same-store sales expected to range from -1% to +2% year-over-year; adjusted EBITDA guidance is $30–$36 million.

• Capital expenditures projected at $20–$25 million, focused on technology and store maintenance.

• No new store openings planned for 2026; approximately five underperforming stores expected to close after the holiday season.