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SPORTSMAN'S WAREHOUSE HOLDINGS, INC. (SPWH)·Q4 2025 Earnings Summary

Executive Summary

  • Q4 delivered a clean quarter with revenue of $340.4M, gross margin expansion to 30.4%, adjusted EBITDA of $14.6M, and adjusted EPS of $0.04; same-store sales were down just 0.5% (13-week basis), demonstrating continued trend improvement and outperformance vs adjusted NICS in firearms .
  • Results beat Wall Street consensus: revenue by ~$11.7M and EPS by ~$0.10; Q3 also beat on both, while Q2 missed EPS but beat revenue*.
  • Management guided FY2025 net sales -1.0% to +3.5%, adjusted EBITDA $33–$45M, and CapEx $20–$25M, with emphasis on “narrow and deep” core hunt/fish assortments, local merchandising, personal protection, and omnichannel execution .
  • Balance sheet cleanup was a focus: year-end inventory $342.0M, liquidity $131.1M, and net debt reduced; press release cites net debt $95.9M, while CFO later referenced $98.7M, a small discrepancy to monitor .
  • Potential stock reaction catalysts: clear beat vs consensus, gross margin recovery, and FY2025 profitability framework with a single store opening in Surprise, AZ, plus category drivers (personal protection and fishing momentum) .

What Went Well and What Went Wrong

What Went Well

  • Margin recovery: Q4 gross margin rose 360 bps YoY to 30.4% (from 26.8%), as apparel/footwear clearance pressure subsided and merch margins improved .
  • Category performance and share gains: Fishing comps +10.3%, camping +5.2%; firearms units up mid-single digits despite adjusted NICS down 4.5%, suggesting share gains and effective attachment selling .
  • Inventory discipline and cash generation: seasonal inventory moved cleanly, year-end inventory $342.0M, liquidity $131.1M; focus on using excess cash flow to reduce debt and improve leverage .

Selected quote: “We expect to see a return to comparable same store sales growth… Our strategic edge is that we have the scale to out-assort the local independents, and out-local the big box competitors.” — Paul Stone, CEO .

What Went Wrong

  • Demand still pressured: Q4 net sales down 8.1% YoY due to 53rd week comp; on comparable 13-week basis, net sales down 0.9% and same-store sales down 0.5% (reflecting pressured discretionary spending) .
  • Mix headwinds: consumer trade-down in firearms lowered average unit price, pressuring sales dollars despite unit outperformance; apparel and footwear comps were down (still lapping last year’s clearance) .
  • SG&A rate elevated: Q4 SG&A at 29.4% of sales (up vs 29.0% LY) though dollars fell $7.3M; ongoing need to balance service investments with cost control .

Financial Results

Quarterly progression and estimates comparison

MetricQ2 2025Q3 2025Q4 2025
Revenue ($USD Millions)$288.7 $324.3 $340.4
Diluted EPS (GAAP) ($)$(0.16) $(0.01) $(0.23)
Adjusted EPS ($)$(0.14) $0.04 $0.04
Gross Margin (%)31.2% 31.8% 30.4%
SG&A (% of net sales)32.7% 30.8% 29.4%
Adjusted EBITDA ($USD Millions)$7.4 $16.4 $14.6
Same-store sales (%)-9.8% -5.7% -0.5% (13-week)
MetricQ2 2025Q3 2025Q4 2025
Revenue Actual ($USD Millions)$288.7 $324.3 $340.4
Revenue Consensus ($USD Millions)$284.99*$300.50*$328.67*
EPS Actual ($)$(0.16) $0.04 $0.04
EPS Consensus ($)$(0.092)*$(0.02)*$(0.062)*
# of EPS Estimates5*5*5*
# of Revenue Estimates5*5*5*

Values marked with an asterisk (*) retrieved from S&P Global.

Q4 YoY detail (note: prior year included an extra week)

MetricQ4 FY2023 (ended Feb 3, 2024)Q4 FY2024 (ended Feb 1, 2025)
Net Sales ($USD Millions)$370.4 $340.4
Gross Margin (%)26.8% 30.4%
SG&A (% of net sales)29.0% 29.4%
Net Loss ($USD Millions)$(8.7) $(8.7)
Diluted EPS ($)$(0.23) $(0.23)
Adjusted EPS ($)$(0.20) $0.04
Adjusted EBITDA ($USD Millions)$5.3 $14.6

KPIs and operating metrics

KPIQ2 2025Q3 2025Q4 2025
Same-store sales (%)-9.8% -5.7% -0.5% (13-week)
Fishing comp (%)~+6% +13% +10.3%
Camping comp (%)——+5.2%
Hunt & Shooting comp (%)——-1.7%
E-commerce penetration (% of sales)19% —>17%
BOPIS share of e-comm (%)——>75%
Inventory ($USD Millions)$363.4 $438.1 $342.0
Net Debt ($USD Millions)$152.5 $154.0 total debt; net debt $151.3 $95.9 (press) / $98.7 (CFO)
Liquidity ($USD Millions)~$100.0 $150.8 $131.1

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net SalesFY2025—-1.0% to +3.5% YoYNew
Adjusted EBITDAFY2025—$33M to $45MNew
CapExFY2025—$20M to $25MNew
Store OpeningsFY20251 new store in 2025 (Q3 press) 1 store (Surprise, AZ; late Q3/early Q4 timing) Maintained

Management also indicated expectations for “modest improvements” in gross margin and tight variable expense control; no formal tax rate/OpEx/OI&E guidance provided .

Earnings Call Themes & Trends

TopicQ2 2025 (prior)Q3 2025 (prior)Q4 2025 (current)Trend
Inventory strategy (“narrow & deep” core SKUs)Under-invested early; planned $20M strategic buy; end clean and reset Seasonal build to win hunt/holiday; end year sub-$350M inventory Clean year-end; narrow/deep focus to “win the seasons” in hunt/fish Improving execution
Personal protection focusStrategy emerging; EDLP ammo and attachment emphasis Continued emphasis; promo-driven traffic, attach to baskets Personal protection ~25% of sales; exclusive partnership with Byrna Less-Lethal Scaling
Tariffs/macroConsumer under pressure; shrink methodology change noted Aggressive holiday promotions; careful margin management Tariff exposure low (<2% of COGS private brand); modest margin impact expected Manageable risk
Omnichannel/digitalE-comm 19% of sales; marketing reset under new leadership Omni holiday campaign, highest-ever e-comm transactions in Cyber Week E-comm >17% of sales; >75% BOPIS; content/local influencer strategy Strengthening
Technology enablementMarketing mix optimization under new leader Data-driven seasonal planning; vendor partnerships Early phases of Blue Yonder for inventory/seasonality Infrastructure build
Regulatory/legal & regionalCA ammo tax prebuy; communication agility Lapping geopolitical events impacting comps Silencer Central online suppressor program (42 states) Operational responsiveness
NICS vs firearmsStrategy to lean into firearms despite trade-down Outperformed NICS units; mix headwinds Outperformed adjusted NICS; units up mid-single digits Share gains

Management Commentary

  • Strategic focal points: “Be narrow and deep in hunting and fishing… improve in-stock levels in the 20% of key products that drive 80% of the business,” and “lean into local” with outfitter-led community influence and local brands .
  • Personal protection: “Personal protection is already near 25% of our total sales… we signed an exclusive store-in-store partnership agreement with Byrna Less-Lethal” to broaden demographic reach and drive 365-day traffic .
  • Profitability and balance sheet: “We will continue to closely manage our variable expenses and expect modest improvements to our gross margins” and use excess cash flow to pay down debt .

Q&A Highlights

  • Cadence and comps: Comps flipped positive in Dec/Jan; positive trends continued into February; March cadence impacted by Easter timing and shifted promotions .
  • Tariffs: Direct private-label tariff exposure <2% of COGS; limited vendor price push-through observed; potential downstream impacts monitored .
  • Free cash flow conversion: No formal FCF guidance; expect positive FCF via profitability and working capital productivity; stable inventory can support FCF .
  • Omnichannel economics: >75% of e-comm demand fulfilled at store (BOPIS), driving significant store profitability uplift via attachment .
  • Store footprint: Some 4-wall negative stores exist but not material; lease-exit costs often exceed annual losses; future renewals will be reviewed for closures/relocations .

Estimates Context

  • Q4 2025: Beat on revenue ($340.4M vs $328.67M*) and EPS ($0.04 vs $(0.062)*).
  • Q3 2025: Beat on revenue ($324.3M vs $300.50M*) and EPS ($0.04 vs $(0.02)*).
  • Q2 2025: Beat on revenue ($288.7M vs $284.99M*), missed EPS ($(0.16) vs $(0.092)*).
  • Implications: With two consecutive beats and margin recovery underway, FY2025 EBITDA guidance ($33–$45M) suggests potential upward estimate revisions if comps and gross margin continue to improve; watch for attachment-driven basket profitability and hunt/fish seasonal execution*.

Values marked with an asterisk (*) retrieved from S&P Global.

Key Takeaways for Investors

  • Two-quarter beat streak with margin recovery and improved comps momentum; Q4 adjusted EPS positive, driven by merchandising/mix, attachments, and cleaner inventory .
  • FY2025 guide frames a return to growth and higher EBITDA; execution hinges on “narrow and deep” core SKUs, local relevance, and disciplined promotions .
  • Firearms strength despite consumer trade-down, plus persistent outperformance vs adjusted NICS; personal protection at ~25% of sales is a durable traffic driver .
  • Omnichannel is a differentiator: >75% BOPIS and >17% e-comm penetration support store attachment economics and category breadth .
  • Balance sheet cleanup credible: inventory down to $342.0M, liquidity $131.1M; reconcile net debt disclosure ($95.9M press vs $98.7M CFO) before modeling leverage .
  • Near-term trading: Seasonal cadence and promotions (Easter shift; spring fish/shoot events) can influence monthly comps; monitor category mix (apparel/footwear recovery vs firearms trade-down) .
  • Medium-term thesis: If core hunt/fish availability and local merchandising deliver sustained comps and margin accretion, EBITDA guide midpoint ($39M) is attainable; limited tariff exposure reduces risk to gross margins .

Additional references:

  • Q4 press release and 8-K furnished: revenue/margin, adjusted EBITDA/EPS, inventory, liquidity, FY2025 outlook .
  • Silencer Central partnership enables online suppressor purchases with door delivery in 42 states, enhancing specialty firearms attach and traffic .