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    SPWH
    Earnings call· Apr 2026(Q1 FY27)

    SPORTSMAN'S WAREHOUSE HOLDINGS Q1 FY27 earnings call SPWH

    Jun 2, 2026 Source

    Executive summary

    Sportsman's Warehouse Q1 FY27 — Strong Core Category Performance and Inventory Management

    Sportsman's Warehouse delivered solid Q1 FY27 results, driven by strong performance in its core hunting, shooting sports, and fishing categories, alongside robust e-commerce growth. The company continues its transformation strategy focused on inventory efficiency and disciplined cost management, which contributed to improved adjusted EBITDA. Despite persistent consumer pressures impacting certain discretionary categories, management remains committed to profitable growth and debt reduction.

    Highlights

    5

    • Same-store sales increased 2.1% in Q1 FY27, building on 2% growth in Q1 FY26.

    • Hunting and Shooting Sports department sales increased over 7% year-over-year.

    • Fishing department sales increased nearly 6% in Q1, up 17% on a 2-year comp stack.

    • E-commerce driven sales were up over 6% in the quarter, leveraging the omnichannel model.

    • Total inventory decreased by $25.1 million or 6.1% year-over-year, reflecting ongoing efficiency.

    Concerns

    3

    • Gross margin declined to 29.6% from 30.4% in Q1 FY26, primarily due to category mix with higher penetration of lower-margin firearms and ammunition.

    • Ongoing consumer macroeconomic pressure and higher fuel prices continue to weigh on discretionary spending and the camping and softline departments.

    • Net loss for Q1 FY27 was $21.8 million, consistent with $21.3 million in Q1 FY26.

    Guidance & targets

    4
    CategoryTargetConfidence
    Full-year net sales
    down 1% to up 2%
    high materiality
    High
    Adjusted EBITDA
    $30 million and $36 million
    high materiality
    High
    Capital expenditures
    $20 million and $25 million
    medium materiality
    High
    Total inventory
    less total inventory than 2025
    medium materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Hunting and Shooting Sports department
    Sales increased over 7% versus last year, driven by firearms, ammunition, and less lethal personal protection. This department also saw 6.3% same-store sales growth.
    		—over 7%——
    Fishing department
    Sales increased nearly 6% in Q1, representing a 17% increase on a 2-year comp stack. Management sees significant growth upside in this category.
    		—nearly 6%——
    Camping and Softline departments
    Sales declined in Q1 due to strategic inventory reduction and assortment changes to eliminate slow-moving, low gross margin products. These categories are also impacted by consumer macroeconomic pressure and weather.
    		—declined——

    Operational metrics

    7
    Net sales growth
    2.8%vs Q1 FY26
    Q1 FY27

    Net sales were $256.1 million in Q1 FY27, up from $249.1 million in Q1 FY26.

    Adjusted Net Loss
    -$15.1 millionvs -$15.6 million in Q1 FY26
    Q1 FY27

    Adjusted net loss per diluted share was -$0.39 in Q1 FY27, compared to -$0.41 in Q1 FY26.

    Adjusted EBITDA
    -$8.1 millionvs -$9 million in Q1 FY25
    Q1 FY27

    Represents an improvement of $900,000 year-over-year.

    Net Debt Balance
    $148.4 million
    end of Q1 FY27

    Net debt balance at the end of the first quarter.

    Total Liquidity
    $116.7 million
    end of Q1 FY27

    Total liquidity position at the end of the first quarter.

    Units per transaction
    improved
    Q1 FY27

    Driven by merchandising strategy, better in-stocks, and strategic shift to solution selling.

    Average order value
    improved
    Q1 FY27

    Driven by merchandising strategy, better in-stocks, and strategic shift to solution selling.

    Industry KPIs

    4
    MetricValueDetails
    Sg a OPEX ratio36.7%% of net sales
    Comparable sales2.1%%
    Gross margin drivers29.6%%
    Inventory position markdown risk$387.1 millionUSD

    Deals & partnerships

    2
    Field & Streampartnership

    Partnership with a top fishing and hunting lifestyle brand to work with leading fishing influencers, create shareable content, enhance brand exposure, showcase trending new products, and drive traffic to Sportsman's Warehouse. Early results are encouraging.

    Epsilonpartnership

    Partnership with a leading loyalty and personalization consultancy to reinvent the loyalty program. The initiative is designed to improve retention, increase customer lifetime value, drive more efficient marketing, support stronger repeat purchase behavior, and implement a more disciplined promotional strategy.

    Risks & headwinds

    3
    Consumer macroeconomic pressureOngoing

    Impacts camping and softline departments, weighing on discretionary spending.

    Mitigation: Refining assortment to core pursuits, inventory efficiency, disciplined cost management.

    Higher fuel pricesOngoing

    Adding additional weight to discretionary spending.

    Mitigation: Offsetting with inventory efficiencies.

    Category mix shiftQ1 FY27

    Gross margin declined by 80 bps (from 30.4% to 29.6%) due to higher penetration of firearms and ammunition.

    Mitigation: Focus on solution selling and attachment to expand gross margins in hunting and shooting sports.

    Q&A highlights

    7

    Seeking clarification on the extent to which underlying category strength versus event-driven demand contributed to the 7% sales increase in Hunting and Shooting Sports.

    Jennifer Fall Jung explained that strength was seen across the quarter, with March and April outperforming prior year combined. February was softer due to a focus on profitable growth. May is showing stabilization after event-driven demand.

    “what we're seeing is a little bit more of a stabilization. I think as we've talked about before, sometimes you see the event-driven or external-driven demand that we do see a little bit of a stabilization post that, and we're experiencing that right now, but feel really good about where the category is, how it performed in Q1 and what it will do in Q2.”

    asked by Anna Glaessgen · answered by Jennifer Fall Jung

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Focus on Core Pursuits

    Sportsman's Warehouse is executing a business transformation centered on strengthening its leadership in hunting, fishing, shooting, and personal protection, which are considered the company's DNA. This involves refining the assortment with regionally specific products and brands aligned to these core pursuits. The company strategically reduced inventory and assortment in non-core categories like camping and softlines to eliminate slow-moving, low-margin products and free up working capital for reinvestment into core categories.

    02

    Omnichannel and E-commerce Growth

    The e-commerce business grew over 6% in Q1, outperforming overall sales and underscoring the strength of the omnichannel model. This growth is strategically leveraged to drive in-store traffic, particularly for firearms and ammunition which require in-store pickup. The company is investing in enhancing the online experience, especially for fishing, and plans to introduce solution-based selling for firearms online to improve attachment rates and basket sizes.

    03

    Inventory Management and Efficiency

    Close management of inventory remains a key priority in the transformation strategy, with total inventory at the end of Q1 down $25.1 million or 6.1% year-over-year. The company aims for improved turns and inventory efficiency throughout 2026 by optimizing receipt timing to match seasonal demand, taking seasonal markdowns appropriately, and focusing on quicker-turning SKUs, expecting to end the year with less total inventory than 2025.

    04

    Gross Margin and SG&A Management

    Gross margin for the quarter was 29.6%, a decline from 30.4% in the prior year, primarily driven by a category mix shift towards higher penetration of lower-margin firearms and ammunition. Despite this, SG&A expenses decreased to 36.7% of net sales from 38.2% in Q1 last year, driven by disciplined cost management, lower payroll expense, and decreased depreciation, contributing to an improvement in adjusted EBITDA.

    05

    Partnerships and Loyalty Program Reinvention

    Sportsman's Warehouse entered a partnership with Field & Stream, a fishing and hunting lifestyle brand, to enhance brand exposure and drive traffic through influencer marketing. Additionally, the company is collaborating with Epsilon, a loyalty and personalization consultancy, to reinvent its loyalty program. This initiative is designed to improve customer retention, increase customer lifetime value, and drive more efficient marketing and repeat purchase behavior.

    06

    Capital Allocation and Liquidity

    The company ended the first quarter with a net debt balance of $148.4 million and a total liquidity of $116.7 million, indicating a strong liquidity position. Generating positive free cash flow and using excess cash to reduce debt and strengthen the balance sheet remains the top capital allocation priority for the company, with tight management of variable expenses and inventory efficiency as key focuses.

    AI-generated summary of the company’s earnings call. Not investment advice.