Financial Performance - Net sales for the thirteen weeks ended May 3, 2025, were $249.1 million, a slight increase from $244.2 million in the same period last year, representing a growth of 1.5%[24] - Gross profit for the same period was $75.6 million, compared to $73.8 million in the prior year, indicating a gross margin improvement[24] - The company reported a net loss of $21.3 million for the thirteen weeks ended May 3, 2025, compared to a net loss of $18.1 million for the same period in 2024, reflecting a deterioration in profitability[24] - The net loss for the thirteen weeks ended May 3, 2025, was $21,254 thousand, compared to a net loss of $18,066 thousand for the same period in 2024, representing an increase in loss of approximately 12.1%[30] - Total net sales for the thirteen weeks ended May 3, 2025, were $249,103, compared to $244,240 for the same period in 2024, representing a growth of approximately 1.5%[68] - Gross profit for the same period increased to $75,643 from $73,786, reflecting a gross margin improvement[68] - During the 13 weeks ended May 3, 2025, the Company recognized a net loss of $21,254, resulting in a basic and diluted loss per share of $0.56[97] Cash and Liquidity - Total current assets increased to $441.4 million as of May 3, 2025, up from $366.0 million as of February 1, 2025, showing a significant liquidity improvement[21] - The company’s cash and cash equivalents increased to $3.6 million from $2.8 million, enhancing its cash position[21] - Cash and cash equivalents at the end of the period were $3,560 thousand, up from $2,168 thousand at the end of the same period in 2024, reflecting an increase of approximately 64.0%[30] - Net cash used in operating activities was $60,234 thousand for the thirteen weeks ended May 3, 2025, compared to $34,650 thousand for the same period in 2024, indicating a significant increase of approximately 74.0%[30] - The company reported a net cash provided by financing activities of $64,766 thousand for the thirteen weeks ended May 3, 2025, compared to $36,965 thousand for the same period in 2024, an increase of approximately 75.2%[30] Expenses and Liabilities - Selling, general, and administrative expenses were $95.3 million for the thirteen weeks ended May 3, 2025, slightly higher than $94.4 million in the prior year, reflecting ongoing operational costs[24] - Total liabilities rose to $714.6 million as of May 3, 2025, compared to $616.4 million as of February 1, 2025, indicating increased financial leverage[21] - The company incurred $2,821 thousand in interest paid during the period, compared to $2,688 thousand in the same period of the previous year, reflecting an increase of approximately 4.9%[30] - Total lease expense for the thirteen weeks ended May 3, 2025, was $23,977, up from $23,398 in 2024[61] - The company’s operating lease liabilities increased significantly, with a change of $9,869 thousand for the period ended May 3, 2025, compared to $1,477 thousand in the same period of 2024[30] Market and Operational Strategy - The company plans to focus on financial discipline and expense reduction in response to adverse macroeconomic conditions, which may impact future performance[16] - The company is exploring new market opportunities and plans to open additional stores, although success in these initiatives is uncertain[16] - The company operated 146 stores across 32 states as of May 3, 2025, maintaining its retail presence while also managing an e-commerce platform[34] Legal Matters - A putative class action lawsuit was filed against the Company and its Board of Directors on January 22, 2024, in the Delaware Court of Chancery[112] - The lawsuit claims that certain provisions in the Company's advance notice bylaws are invalid and that the Board members breached their fiduciary duty of loyalty[112] - The plaintiff seeks declaratory, equitable, and injunctive relief, along with attorneys' fees and other costs on behalf of the putative class[112] - The Court stayed the action on March 27, 2025, pending the resolution of motions to dismiss in other cases challenging advance notice bylaws[112] Shareholder Information - The weighted average shares outstanding for basic and diluted shares were 38.1 million for the current period, compared to 37.6 million in the prior year, indicating a slight increase in share count[24] - The Company had $314 in outstanding deferred financing fees as of May 3, 2025[91] - As of May 3, 2025, the number of shares available for awards under the Amended 2019 Plan was 1,954[99] Tax and Financing - The effective tax rate for the Company during the 13 weeks ended May 3, 2025, was 5.9%, significantly lower than the 23.2% rate for the same period in 2024[94] - Long-term debt remained stable at $25,000 as of May 3, 2025, with an interest rate of 10.42%[70][76] - The interest rate on the amounts outstanding under the Revolving Line of Credit was 5.98% as of May 3, 2025, compared to 5.74% on February 1, 2025[86] - The Revolving Line of Credit matures on May 27, 2027, and contains customary affirmative and negative covenants[89] - The Company has a borrowing base calculation for its Term Loan, with $18,000 available for borrowing as of May 3, 2025[76] - The Company held approximately $416,400 in collateralized eligible inventory and credit card receivables related to the Term Loan and the Revolving Line of Credit as of May 3, 2025[89]

Financial Data and Key Metrics Changes - Net sales for Q1 2025 were $249.1 million, a 2% increase from $244.2 million in the same period last year, marking a strong start to the year [15] - Gross margin for the quarter was 30.4%, up 20 basis points from 30.2% a year ago, driven by favorable mix and rate improvements in the Fishing business [16] - SG&A expenses were $95.3 million, or 38.2% of net sales, compared to 38.6% in the prior year, reflecting improved expense discipline [17] - Net loss for Q1 was $21.3 million, or negative $0.56 per diluted share, compared to a net loss of $18.1 million, or negative $0.48 per diluted share in the prior year [17] - Adjusted EBITDA for Q1 was negative $9 million, compared to negative $8.7 million in Q1 2024 [18] Business Line Data and Key Metrics Changes - Firearms unit sales increased nearly 7% year-over-year, significantly outpacing the adjusted NICS data, which declined by 5.4% [7] - Positive sales comps were achieved in most core categories, including firearms, clothing, footwear, and ammunition, which was up 3% [7] - Fishing sales were up 11%, validating the new merchandising strategy with a two-year comp stock growth of 12.3% [8] - E-commerce business posted a positive comp, up 8% over last year, driven by a new digital-first marketing strategy [9] Market Data and Key Metrics Changes - The company captured market share in firearms despite a decline in adjusted NICS, indicating strong performance relative to the industry [7] - The strategic shift to everyday low prices on core ammunition calibers drove a 12% increase in ammo unit sales during the quarter [9] Company Strategy and Development Direction - The company is focused on a turnaround plan to transform Sportsman's Warehouse for sustained profitability and growth, emphasizing inventory precision, local relevance, personal protection, and brand awareness [5][6] - The launch of the Safety Outpost on the website signals a commitment to personal protection, a major growth category [11] - The company aims to reduce total inventory by the end of the year while maintaining the right products in the right stores at the right time [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic plan despite ongoing macroeconomic challenges, highlighting improved comp trends and inventory execution [24] - The company anticipates generating positive free cash flow and using excess cash to reduce debt and strengthen the balance sheet [22][41] - Full year guidance for net sales is expected to range between down 1% to up 3.5% compared to 2024, with adjusted EBITDA projected between $33 million and $45 million [23] Other Important Information - Total inventory at the end of Q1 was $412.3 million, up from $391.6 million in the same period last year, reflecting a strategic decision to pull forward inventory ahead of rising tariffs [18] - The company reduced total active SKUs by approximately 20%, simplifying the assortment and improving inventory terms [20] Q&A Session Summary Question: Can you break down comp trends by month and extend that into May? - Management noted good trends in February, with a strong performance in April, and confirmed that May also showed positive comps [26][28] Question: Is the increase in sales due to foot traffic or inventory assortments? - Management indicated a mixture of better traffic trends, positive transaction trends, and higher basket sizes contributing to the increase [29] Question: Can you clarify the $20 million inventory pull forward? - Management confirmed the strategic decision to pull forward $20 million of inventory to address tariff uncertainties and ensure stock for key seasons [36] Question: Did sales mix negatively impact gross profit margin in Q1? - Management acknowledged that heavy penetration in firearms and ammo impacted gross profit margin but was aligned with their strategy [38] Question: What are the thoughts on debt repayment this year? - Management expressed confidence in generating positive free cash flow and applying excess cash to debt repayment [41] Question: What is the impact of tariffs on the P&L? - Management indicated that the pull forward in inventory would likely mitigate tariff impacts until at least the third quarter [49]

Financial Data and Key Metrics Changes - Net sales for Q1 2025 were $249.1 million, a 2% increase from $244.2 million in the same period last year, marking a strong start to the year [17] - Gross margin for the quarter was 30.4%, up 20 basis points from 30.2% a year ago, driven by favorable mix and rate improvements in the Fishing business [18] - SG&A expenses were $95.3 million, or 38.2% of net sales, compared to 38.6% in the prior year, reflecting continued focus on expense discipline [19] - Net loss for Q1 was $21.3 million, or negative $0.56 per diluted share, compared to a net loss of $18.1 million, or negative $0.48 per diluted share in the prior year [19] - Adjusted EBITDA for Q1 was negative $9 million, compared to negative $8.7 million in Q1 2024 [20] Business Line Data and Key Metrics Changes - Firearms unit sales increased nearly 7% year-over-year, significantly outpacing the adjusted NICS data, which declined by 5.4% [8] - Positive sales comps were achieved in most core categories, including firearms, clothing, footwear, and ammunition, which was up 3% [8] - Fishing sales were up 11%, validating the new merchandising strategy with a two-year comp stock growth of 12.3% [9] Market Data and Key Metrics Changes - E-commerce business posted a positive comp, up 8% over last year, outpacing the overall business [11] - The company experienced a 12% increase in ammo unit sales during the quarter, driven by strategic pricing and inventory management [11] Company Strategy and Development Direction - The company is focused on a turnaround plan to transform Sportsman's Warehouse for sustained profitability and growth, emphasizing inventory precision, local relevance, personal protection, and brand awareness [6][7] - A new omni-channel brand campaign is being launched to reestablish Sportsman's Warehouse as the preferred destination for outdoor gear [14] - The company aims to reduce total inventory by the end of the year while maintaining the right products in the right stores at the right time [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic plan despite ongoing consumer macroeconomic challenges, highlighting the unique competitive advantage of local expertise [15] - The company anticipates generating positive free cash flow and reducing debt throughout 2025 [23][24] - Full year guidance for net sales is expected to range between down 1% to up 3.5% compared to 2024, with adjusted EBITDA projected between $33 million and $45 million [24] Other Important Information - Total inventory at the end of Q1 was $412.3 million, up from $391.6 million in the same period last year, reflecting a strategic decision to pull forward inventory ahead of rising tariffs [20] - The company reduced total active SKUs by approximately 20%, simplifying the assortment and improving inventory terms [22] Q&A Session Summary Question: Can you break down comp trends by month and extend into May? - Management noted good trends in February, with a strong performance in April and positive comp for May [27][29] Question: Is the increase in sales due to foot traffic or inventory assortments? - Management indicated a mixture of better traffic trends and higher basket sizes due to improved inventory strategies [30] Question: Can you elaborate on the $20 million inventory pull forward? - The company confirmed the strategic decision to pull forward inventory to mitigate tariff impacts and ensure stock for key seasons [38] Question: Did sales mix negatively impact gross profit margin in Q1? - Management acknowledged that heavy penetration in firearms and ammo impacted gross profit margin [39] Question: What are the thoughts on debt repayment this year? - Management expressed confidence in generating positive free cash flow to apply towards debt repayment [43] Question: What is the expected impact of tariffs on the P&L? - Management indicated that the pull forward in inventory may mitigate tariff impacts until at least the third quarter [50] Question: What is driving the outperformance relative to the industry? - The company is significantly outperforming NICS on a unit basis, driven by strategic inventory management and customer value [53]

Group 1 - The conference call for Sportsman's Warehouse Holdings, Inc. Q1 2025 earnings took place on June 3, 2025, featuring key company executives including the CEO and CFO [1][2] - The call included forward-looking statements regarding expectations about future operational results, product demand, and industry growth [2][3] - The company emphasized that actual results may differ from forward-looking statements due to various risks and uncertainties [3]

Core Insights - Sportsman's Warehouse reported adjusted quarterly losses of 41 cents per share, missing the Street estimate of losses of 10 cents [1] - Quarterly revenue was $249.1 million, which also fell short of the consensus estimate of $290.5 million [1] Financial Performance - Net sales increased by 2.0% to $249.1 million compared to $244.2 million in the first quarter of fiscal year 2024, driven by increased sales in Fishing, Hunting, and Shooting Sports departments [4] - Total inventory at the end of the first quarter was $412.3 million, partly due to the pull forward of certain inventory purchases in anticipation of increased tariffs [4] Strategic Initiatives - The company achieved its first positive same-store sales comp in nearly four years, indicating progress in its transformation strategy [2] - Focus areas include improving inventory precision, leveraging local expertise, executing a new digital-first marketing strategy, and establishing Sportsman's as an authority in personal protection [3] Market Reaction - Following the earnings report, Sportsman's Warehouse stock declined by 11.21% to $2.06 in extended trading [3]

Sales Performance - Q1 2025 same store sales increased by 2% compared to a decline of 13.5% in Q1 2024[1] - Net sales for Q1 2025 were $249.1 million, up from $244.2 million in Q1 2024, representing a 2.0% increase[3] - The company expects net sales for fiscal year 2025 to range from a decline of 1.0% to an increase of 3.5%[6] Profitability - Gross profit for Q1 2025 was $75.6 million, or 30.4% of net sales, compared to $73.8 million, or 30.2% of net sales in Q1 2024[3] - Net loss for Q1 2025 was $(21.3) million, compared to a net loss of $(18.1) million in Q1 2024[3] - Adjusted EBITDA for Q1 2025 was $(9.0) million, slightly worse than $(8.7) million in Q1 2024[3] - The company reported a net loss of $21,254 thousand for the thirteen weeks ended May 3, 2025, compared to a net loss of $18,066 thousand for the same period in 2024, reflecting a decline of approximately 12.1%[22] - Adjusted EBITDA for the same period was $(8,960) thousand, slightly worse than the $(8,737) thousand reported in the prior year[27] - The diluted loss per share was $(0.56) for the thirteen weeks ended May 3, 2025, compared to $(0.48) for the same period in 2024[24] - The company incurred $5,646 thousand in valuation allowance adjustments, impacting the adjusted net loss[24] Expenses and Management - SG&A expenses were $95.3 million, or 38.2% of net sales, down from 38.6% in Q1 2024, reflecting improved expense management[3] - Adjusted EBITDA guidance for fiscal year 2025 is projected to be between $33 million and $45 million[6] Inventory and Assets - As of May 3, 2025, total inventory was $412.3 million, reflecting strategic inventory investments in anticipation of increased tariffs[8] - Merchandise inventories increased to $412,268 thousand, up from $341,958 thousand, indicating a rise of approximately 20.5%[20] - Total assets increased to $929,669 thousand as of May 3, 2025, up from $852,102 thousand on February 1, 2025, representing a growth of approximately 9.1%[20] Liabilities and Equity - Current liabilities rose to $378,500 thousand, compared to $283,963 thousand in the previous period, marking an increase of about 33.3%[20] - Stockholders' equity decreased to $215,057 thousand from $235,704 thousand, a decline of approximately 8.8%[20] - The company had net borrowings on the line of credit amounting to $67,210 thousand during the period, compared to $37,992 thousand in the previous year[22] Future Plans - The company plans to open one new store in Surprise, Arizona during fiscal year 2025[6]

Core Insights - Sportsman's Warehouse reported a 2% increase in net sales to $249.1 million for the first quarter of fiscal year 2025, compared to $244.2 million in the same period last year, marking a significant recovery from a -13.5% decline in the previous year [1][7] - The company reaffirmed its full-year guidance for fiscal year 2025, expecting net sales to range from a decline of 1.0% to an increase of 3.5% and adjusted EBITDA between $33 million and $45 million [8] Financial Performance - Gross profit for the quarter was $75.6 million, representing 30.4% of net sales, an increase from 30.2% in the prior year, driven by improved inventory productivity and product margin rates in the fishing category [7] - Selling, general, and administrative (SG&A) expenses were $95.3 million, or 38.2% of net sales, down from 38.6% in the previous year, reflecting effective expense management [7] - The net loss for the quarter was $(21.3) million, compared to a net loss of $(18.1) million in the same quarter last year, while the adjusted net loss improved to $(15.6) million from $(17.8) million [7][22] Strategic Initiatives - The company is focusing on improving inventory precision, leveraging local expertise, and executing a digital-first marketing strategy to enhance customer loyalty and trust [3][6] - Anticipating increased tariffs, Sportsman's Warehouse made targeted inventory investments to secure critical products ahead of seasonal demand, balancing near-term gross margin pressure with inventory readiness [6] Outlook - The company plans to open one new store in Surprise, Arizona during fiscal year 2025 and is committed to generating positive free cash flow while paying down debt [8] - Total liquidity at the end of the first quarter was $122.1 million, consisting of $118.5 million available on credit facilities and $3.6 million in cash [7]

Core Viewpoint - Sportsman's Warehouse Holdings, Inc. will hold its quarterly conference call to discuss first quarter 2025 financial results on June 3, 2025, at 5:00 p.m. Eastern Time [1] Group 1: Conference Call Details - The conference call will be accessible via a live audio webcast on the Company's investor relations website [2] - A replay of the webcast will be available within two hours after the call and can be accessed until June 10, 2025 [2] Group 2: Company Overview - Sportsman's Warehouse is an outdoor specialty retailer catering to both seasoned outdoor veterans and first-time participants, providing gear and exceptional service [3] - The Company aims to inspire outdoor memories through its offerings [3] Group 3: Investor Relations Contact - Investor relations contact for Sportsman's Warehouse is Riley Timmer, VP of Investor Relations, reachable at (801) 304-2816 or via email at investors@sportsmans.com [4]

Core Insights - Sportsman's Warehouse experienced a significant trading volume surge of over 105 million shares following its FQ4 2024 earnings release, marking a 21,000% increase over the average volume, indicating strong market interest [1] - The company reported a net revenue of $340.4 million for Q4, reflecting an 8.1% contraction, which is an improvement compared to a 12% decline in the previous period [5][6] - Analysts have a positive outlook on the stock, with a 12-month price target of $2.80, suggesting a potential upside of 66.67% from the current price of $1.68 [9] Financial Performance - The adjusted EPS for Sportsman's Warehouse was $0.04, an increase of $0.24 year-over-year, exceeding market expectations [7] - The company forecasts slight revenue decline to modest single-digit growth, with EBITDA growth projected to exceed 10%, supporting balance sheet health [8] Market Sentiment - Short interest in the stock remains low at 1.8%, indicating limited bearish sentiment among investors [2] - Institutional buying activity has increased significantly, with institutions holding about 85% of the stock, providing a solid support base [11] Technical Analysis - The stock has shown signs of a bullish reversal pattern, with critical resistance at $2.00, and a potential move towards $3.00 if this level is surpassed [12][13]

Core Viewpoint - Sportsman's Warehouse Holdings, Inc. has promoted Susan Sanderson to Chief Marketing Officer, a move aimed at strengthening the company's leadership and supporting its growth plans [1][2]. Company Overview - Sportsman's Warehouse is an outdoor specialty retailer catering to a diverse customer base, from seasoned veterans to first-time participants, providing exceptional gear and service [4]. Leadership and Strategy - Susan Sanderson joined Sportsman's Warehouse in July 2024 as Senior Vice President of Marketing, E-commerce, and Loyalty, bringing over two decades of experience in omni-channel retail and business turnarounds [2]. - Sanderson's leadership is expected to accelerate performance and guide the company through its next growth phase, focusing on brand enhancement and customer connection [2][3]. Growth Initiatives - The company has laid a strong foundation for transformational growth over the past year, with Sanderson emphasizing the importance of sharpening the brand and driving growth across all channels [3]. - The marketing strategy will involve listening to customer insights to build a competitive advantage, positioning Sportsman's Warehouse as a trusted destination for hunting and fishing [3].