Sportsman's Warehouse (SPWH) Q4 2026 earnings summary

Executive summary

• Achieved 1% net and comparable store sales growth for FY2025, marking the first positive comps since 2020 and exceeding revised expectations.

• Q4 sales trends turned positive in the back half, driven by strong performance in core pursuits and effective promotional strategies.

• 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%.

• E-commerce sales grew 8.3% in Q4 and 6.6% for the year, highlighting omni-channel strength.

Financial highlights

• Q4 net sales were $334.9 million, down 1.6% year-over-year; full-year net sales rose 1.0% to $1,209.2 million.

• 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/share); adjusted net loss was $3.9 million (-$0.10/share).

• Adjusted EBITDA for FY2025 was $27.5 million, modestly below prior year but above revised guidance.

• Inventory ended at $312.9 million, down $29.1 million (8.5%) year-over-year.

• Net debt reduced to $90 million, a 6.1% decrease year-over-year; total liquidity at $107.8 million.

Outlook and guidance

• FY2026 same-store sales expected to range from -1% to +2% year-over-year.

• Adjusted EBITDA guidance for FY2026 is $30–$36 million, driven by improved gross margin and expense management.

• 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.

• Continued focus on profitable growth, inventory efficiency, and debt reduction.