Sportsman’s Warehouse Holdings Inc. slightly lowered its net loss in the second quarter ended August 1 due to inventory efficiencies and a tariff refund.  Same-store sales were flat as a 6.7 percent climb in Hunting and Shooting Sports sales and gains in its Optics, Electronics, Accessories and Other departments offset declines in other categories. The hunt & fish retailer reiterated its guidance for the year.

Net sales increased 0.6 percent to $295.6 million, compared to $293.9 million in the second quarter of fiscal year 2025, while same-store sales in the quarter were flat. Same store sales performance was driven primarily by a 6.7 percent gain in Hunting and Shooting Sports, led by Firearms and Ammunition, with some additional event-driven demand. Same store sales in its Optics, Electronics, Accessories and Other department increased by 1.0 percent, compared with the second quarter of fiscal year 2025. Other categories declined, reflecting continued pressure on the U.S. consumer, and drought conditions in the western U.S. pressuring the fishing department.

Gross profit was $96.0 million, or 32.5 percent of net sales, compared to $93.9 million, or 32.0 percent of net sales, in the second quarter of fiscal year 2025. The increase, as a percentage of sales, was primarily due to more disciplined inventory management reducing overall freight expense and a one-time tariff benefit, partially offset by category mix shift.

Selling, general, and administrative (SG&A) expenses were $97.1 million, or 32.9 percent of net sales, compared to $97.2 million, or 33.1 percent of net sales, in the second quarter of fiscal year 2025. The decrease in SG&A expenses was primarily driven by decreased depreciation expense.

Net loss was $4.4 million, compared to a net loss of $7.1 million in the second quarter of fiscal year 2025. Adjusted net loss was $3.1 million compared to an adjusted net loss of $4.7 million in the second quarter of fiscal year 2025.

Adjusted EBITDA was $8.7 million, compared to $8.3 million in the second quarter of fiscal year 2025.

Diluted loss per share was 11 cents compared to a diluted loss per share of 18 cents in the second quarter of fiscal year 2025. Adjusted diluted loss per share was 8 cents compared to adjusted diluted loss per share of 12 cents in the second quarter of fiscal year 2025.

Fiscal 2026 First Half Summary:

  • Net sales were $551.7 million, an increase of 1.6 percent, compared to the first six months of fiscal year 2025. The net sales increase was primarily due to increased sales in its Hunting and Shooting Sports department led by firearms and ammunition, with some additional event-driven demand. Additionally, sales in its Fishing department are up nearly 1 percent. This increase led to a same store sales increase of 1.0 percent compared to the first six months of fiscal year 2025.
  • Gross profit was $171.8 million or 31.1 percent of net sales, compared to $169.6 million or 31.2 percent of net sales for the first six months of fiscal 2025. This decrease, as a percentage of net sales, was primarily due to unfavorable department level mix and rates, partially offset by lower freight from improved inventory management and a one-time tariff benefit.
  • SG&A expenses decreased to $191.0 million or 34.6 percent of net sales, compared with $192.4 million or 35.4 percent of net sales for the first six months of fiscal year 2025, due to a decrease in depreciation expense, partially offset by increases in rent and other operating expenses.
  • Net loss was $26.3 million, compared to net loss of $(28.3) million in the prior year period. Adjusted net loss was $(18.2) million, compared to adjusted net loss of $20.3 million in the first six months of fiscal year 2025.
  • Adjusted EBITDA was $0.6 million compared to $(0.7) million in the first six months of fiscal year 2025.
  • Diluted loss per share was 68 cents , compared to diluted loss per share of 74 cents in the first six months of fiscal year 2025. Adjusted diluted loss per share was 47 cents, compared to adjusted diluted loss per share of 53 cents in the corresponding prior-year period.

Balance Sheet Summary
Sportsman’s Warehiuse ended the second quarter with net debt of $167.0 million, comprised of $2.0 million of cash on hand, $43.9 million of net borrowings outstanding under the company’s term loan facility and $125.1 million of net borrowings outstanding under the company’s revolving credit facility.

Total inventory at the end of the second quarter was $399.0 million, a decrease of $44.5 million compared to last year, reflecting a strategy to improve seasonally timed inventory and gain additional efficiency in its operating model.

Total liquidity was $105.0 million as of the end of the second quarter of fiscal year 2026, comprised of $103.0 million of availability on the term loan and revolving credit facilities and $2.0 million of cash and cash equivalents.

Outlook
For fiscal year 2026, the company is reiterating its guidance and estimates same-store sales to be in the range of down 1.0 percent to up 2.0 percent and adjusted EBITDA to be in the range of $30 million to $36 million. The company also expects capital expenditures for 2026 to be in the range of $20 million to $25 million, primarily consisting of technology investments and general store maintenance. There are no new store openings planned for 2026.

Image courtesy Sportsman’s Warehouse Holdings Inc.

See below for in-depth coverage of the company’s second quarter conference call with analysts:

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