Sportsman’s Warehouse (NASDAQ:SPWH) Announces Earnings Results

Sportsman’s Warehouse (NASDAQ:SPWH) issued its quarterly earnings results on Tuesday. The company reported ($0.08) earnings per share for the quarter, topping the consensus estimate of ($0.12) by $0.04, FiscalAI reports. Sportsman’s Warehouse had a negative net margin of 3.94% and a negative return on equity of 10.16%. The company had revenue of $295.58 million during the quarter, compared to analysts’ expectations of $295.05 million.

Here are the key takeaways from Sportsman’s Warehouse’s conference call:

• Q2 sales were broadly stable, with net sales up 0.6% to $295.6 million and same-store sales essentially flat, in line with expectations. Hunting and shooting sports grew 6.7%, led by firearms and ammunition, while fishing, camping, apparel, and footwear declined.
• Gross margin improved 50 basis points to 32.5%, while adjusted EBITDA rose to $8.7 million from $8.3 million and adjusted net loss narrowed to $3.1 million. Cost controls, lower freight expense, inventory discipline, and a tariff refund helped offset heavier promotions.
• Inventory fell $44.5 million, or 10%, year over year, and net debt declined $26 million to $169 million. Management expects inventory to finish below 2025 levels and remains focused on generating free cash flow to reduce debt.
• Management reiterated fiscal 2026 guidance for sales ranging from down 1% to up 2%, adjusted EBITDA of $30 million to $36 million, and capital expenditures of $20 million to $25 million. Executives remain optimistic about improved fall and holiday assortments, although elevated fuel prices and a pressured consumer are expected to sustain a promotional environment.
• E-commerce sales increased nearly 3% for the ninth consecutive quarter of outpacing total company sales, with more than 70% of online orders picked up in stores. The company is also targeting an early 2027 rollout of a redesigned loyalty program intended to increase customer spending, retention, and margins.

Sportsman’s Warehouse Stock Up 6.7%

SPWH stock opened at $1.28 on Thursday. The company has a quick ratio of 0.07, a current ratio of 1.18 and a debt-to-equity ratio of 0.27. The business has a 50 day moving average price of $1.20 and a two-hundred day moving average price of $1.29. The company has a market cap of $49.95 million, a price-to-earnings ratio of -1.04 and a beta of 0.42. Sportsman’s Warehouse has a twelve month low of $1.08 and a twelve month high of $3.55.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on the stock. Zacks Research lowered shares of Sportsman’s Warehouse from a “strong-buy” rating to a “hold” rating in a research report on Thursday, August 6th. Wall Street Zen raised shares of Sportsman’s Warehouse from a “sell” rating to a “hold” rating in a research report on Saturday, June 6th. Finally, Weiss Ratings lowered shares of Sportsman’s Warehouse from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Thursday, August 20th. Two equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $2.58.

Institutional Investors Weigh In On Sportsman’s Warehouse

Institutional investors and hedge funds have recently made changes to their positions in the stock. Dynamic Technology Lab Private Ltd bought a new position in shares of Sportsman’s Warehouse in the fourth quarter valued at $41,000. Prudential Financial Inc. acquired a new position in Sportsman’s Warehouse during the second quarter worth $56,000. Centiva Capital LP bought a new stake in Sportsman’s Warehouse during the third quarter worth $63,000. XTX Topco Ltd bought a new stake in Sportsman’s Warehouse during the second quarter worth $189,000. Finally, BNP Paribas Financial Markets lifted its stake in Sportsman’s Warehouse by 165.3% in the second quarter. BNP Paribas Financial Markets now owns 57,167 shares of the company’s stock valued at $197,000 after acquiring an additional 35,621 shares during the last quarter. Institutional investors own 83.04% of the company’s stock.

About Sportsman’s Warehouse

Sportsman’s Warehouse, Inc (NASDAQ: SPWH) operates as a specialty retailer of hunting, shooting, fishing, camping and related outdoor sports equipment in the United States. The company’s brick-and-mortar footprint comprises over 100 retail locations across more than 20 states, complemented by an e-commerce platform that serves anglers and outdoorsmen nationwide. By focusing on core outdoor activities, Sportsman’s Warehouse delivers a comprehensive shopping experience for enthusiasts of all skill levels.

The retailer’s product assortment includes firearms and ammunition, archery gear, fishing tackle and boats, camping supplies, outdoor apparel and footwear, water sports equipment and pet supplies.