Announces resignation of Steven R. Becker as a member of the Board WEST JORDAN, Utah, Sept. 11, 2025 (GLOBE NEWSWIRE) -- Sportsman’s Warehouse Holdings, Inc. (“Sportsman’s Warehouse” or the “Company”) (Nasdaq: SPWH) announced today that Michael Tucci has been appointed as an independent member of its Board of Directors (the “Board”), effective immediately. The Company also announced that Steven R. Becker has stepped down as a member of the Board, effective as of September 5, 2025. Mr. Tucci’s career spanned ...

Long-only investment, evaluating companies from an operational, buy-and-hold perspective.Quipus Capital does not focus on market-driven dynamics and future price action. Instead, our articles focus on operational aspects, understanding the long-term earnings power of companies, the competitive dynamics of the industries where they participate, and buying companies that we would like to hold independently of how the price moves in the future. Most QC calls will be holds, and that is by design. Only a very sm ...

Financial Data and Key Metrics Changes - Same-store sales increased by 2.1% year-over-year, marking the second consecutive quarter of comp store sales growth [4][12] - Net sales for Q2 were $393.9 million, a 1.8% increase compared to the prior year [12] - Gross margin improved to 32%, an 80 basis point increase from Q2 last year, driven by healthier inventory and higher sales penetration from the fishing department [13][14] - Net loss for Q2 was $7.1 million, compared to a net loss of $5.9 million in the same quarter last year [15] - Adjusted EBITDA improved to $8.3 million, up from $7.4 million in the same quarter last year [15] Business Line Data and Key Metrics Changes - The hunting and shooting sports department grew by 4%, while fishing sales increased by nearly 11% year-over-year [6][12] - Ammunition sales grew by 10%, with average unit retail up in low single digits [6] - Camping sales were down 10% compared to last year, prompting a strategic shift to eliminate slow-moving categories [7] Market Data and Key Metrics Changes - Sales in Alaska grew by high single digits, indicating successful localization of merchandise assortments [5] - The firearms business outperformed the industry despite a 4.9% decline in adjusted NICs checks [5] Company Strategy and Development Direction - The company is focused on four key priorities: inventory precision, local relevance, personal protection, and brand awareness [9][10] - A strategic shift to an everyday low-price model for core ammunition has resonated well with customers [6] - The company aims to improve inventory efficiency and reduce working capital investment [17] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the strategic plan despite ongoing consumer microeconomic challenges [10] - The company anticipates ending the year with lower total inventory than last year and generating positive free cash flow [11][19] - Full-year guidance for net sales has been raised to reflect flat growth, with adjusted EBITDA expected between $33 million and $45 million [18] Other Important Information - Total inventory at the end of Q2 was $443.5 million, compared to $363.4 million in the same period last year, reflecting a strategic decision to prepare for key hunting seasons [16] - The company exercised a $20 million deferred draw feature on its term loan to strengthen the balance sheet [17] Q&A Session Summary Question: Can you talk about the drivers of comp performance and its durability into 2026? - Management highlighted the alignment of strategy around hunting, shooting, fishing, and personal protection as key drivers of performance, with continued investment in inventory to maintain momentum [22][23] Question: Can you discuss margin drivers in the back half of the year? - Management noted that hunting has lower margins due to firearms and ammunition, which will impact overall margins, while fishing has been a beneficiary of margin improvements [26][27] Question: How did demand trend through August and the setup into the back half in terms of comps? - Management expressed satisfaction with August performance, noting acceleration in NICs and a positive outlook for Q3 [32] Question: Can you break down the AOV trend and its potential for improvement? - Management indicated that there is significant room for improvement in attachment rates, particularly in firearms and ammunition, with AOV and UPT both at all-time highs [34][36] Question: How is the company managing potential tariff-related margin pressure? - Management is working with vendors to anticipate cost increases and has flexibility to offset some tariffs through MAP pricing [51][53] Question: Can you provide insight into consumer behavior within the hunt category? - Management noted that average unit retail is down about 4%, but unit sales are up 4.2%, indicating a mixed impact on margins [61][63] Question: Is there an opportunity to increase sales or inventory in suppressors and short barrel rifles? - Management sees significant opportunity in these categories and plans to lean into them in the back half of the year [65]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents the unaudited condensed consolidated financial statements for Sportsman's Warehouse Holdings, Inc., including balance sheets, statements of operations, stockholders' equity, and cash flows, along with detailed notes explaining the company's business, accounting policies, revenue recognition, and specific financial accounts [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position, detailing assets, liabilities, and stockholders' equity at specific points in time Condensed Consolidated Balance Sheet Highlights | Metric | August 2, 2025 (in thousands) | February 1, 2025 (in thousands) | Change | | :-------------------------- | :----------------------------- | :----------------------------- | :----- | | Total Assets | $948,853 | $852,102 | +11.35% | | Merchandise Inventories | $443,499 | $341,958 | +29.69% | | Total Liabilities | $739,966 | $616,398 | +20.05% | | Revolving Line of Credit | $151,215 | $74,654 | +102.56% | | Total Stockholders' Equity | $208,887 | $235,704 | -11.46% | [Condensed Consolidated Statements of Operations](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section outlines the company's financial performance over specific periods, detailing net sales, gross profit, operating expenses, and net loss Thirteen Weeks Ended August 2, 2025 vs. August 3, 2024 | Metric (13 Weeks) | August 2, 2025 (in thousands) | August 3, 2024 (in thousands) | Change (YoY) | | :-------------------------- | :----------------------------- | :----------------------------- | :----------- | | Net Sales | $293,899 | $288,734 | +1.8% | | Gross Profit | $93,949 | $90,018 | +4.4% | | Gross Profit Margin | 32.0% | 31.2% | +0.8 pp | | Selling, General, & Admin. Expenses | $97,166 | $94,341 | +3.0% | | Net Loss | $(7,083) | $(5,906) | +19.9% | | Basic Loss Per Share | $(0.18) | $(0.16) | +12.5% | Twenty-Six Weeks Ended August 2, 2025 vs. August 3, 2024 | Metric (26 Weeks) | August 2, 2025 (in thousands) | August 3, 2024 (in thousands) | Change (YoY) | | :-------------------------- | :----------------------------- | :----------------------------- | :----------- | | Net Sales | $543,002 | $532,974 | +1.9% | | Gross Profit | $169,592 | $163,804 | +3.5% | | Gross Profit Margin | 31.2% | 30.7% | +0.5 pp | | Selling, General, & Admin. Expenses | $192,422 | $188,754 | +1.9% | | Net Loss | $(28,337) | $(23,972) | +18.2% | | Basic Loss Per Share | $(0.74) | $(0.64) | +15.6% | [Condensed Consolidated Statements of Stockholders' Equity](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This section details changes in the company's equity, including accumulated earnings and common stock shares outstanding Condensed Consolidated Statements of Stockholders' Equity Highlights | Metric | August 2, 2025 (in thousands) | February 1, 2025 (in thousands) | Change | | :-------------------------- | :----------------------------- | :----------------------------- | :----- | | Total Stockholders' Equity | $208,887 | $235,704 | -11.46% | | Accumulated Earnings | $120,987 | $149,324 | -18.98% | | Common Stock Shares Outstanding | 38,413 | 38,041 | +0.98% | [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section summarizes the cash inflows and outflows from operating, investing, and financing activities over a specific period Condensed Consolidated Statements of Cash Flows Highlights (26 Weeks) | Metric (26 Weeks) | August 2, 2025 (in thousands) | August 3, 2024 (in thousands) | Change (YoY) | | :-------------------------- | :----------------------------- | :----------------------------- | :----------- | | Net Cash Used in Operating Activities | $(86,799) | $(16,132) | +438.0% | | Net Cash Used in Investing Activities | $(11,169) | $(7,631) | +46.4% | | Net Cash Provided by Financing Activities | $96,940 | $23,182 | +318.1% | | Cash and Cash Equivalents at End of Period | $1,804 | $2,560 | -29.6% | [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information supporting the condensed consolidated financial statements [(1) Description of Business and Basis of Presentation](index=13&type=section&id=(1)%20Description%20of%20Business%20and%20Basis%20of%20Presentation) Sportsman's Warehouse Holdings, Inc. operates 146 retail sporting goods stores and an e-commerce platform, all aggregated into a single operating and reportable segment - Operates **146 stores** in 32 states and an e-commerce platform[37](index=37&type=chunk) - Aggregated into one operating and reportable segment[37](index=37&type=chunk) [(2) Summary of Significant Accounting Policies](index=13&type=section&id=(2)%20Summary%20of%20Significant%20Accounting%20Policies) The company consistently applies its accounting policies and is evaluating the impact of recently issued accounting pronouncements on income tax and expense disclosures - Evaluating ASU No. 2023-09 (Income Tax Disclosures), effective for annual periods after December 15, 2024[40](index=40&type=chunk) - Evaluating ASU No. 2024-03 (Expense Disaggregation Disclosures), effective for annual periods after December 15, 2026[41](index=41&type=chunk)[43](index=43&type=chunk) [(3) Revenue Recognition](index=14&type=section&id=(3)%20Revenue%20Recognition) The company recognizes revenue from retail store sales, e-commerce, gift cards, and loyalty programs upon transfer of control, maintaining reserves for returns and recognizing breakage based on historical rates - Revenue recognized for single performance obligations: retail store sales, e-commerce sales, gift cards, and loyalty rewards program[45](index=45&type=chunk)[49](index=49&type=chunk) - Gift card breakage rate: **4.0%**[48](index=48&type=chunk) - Loyalty reward point breakage rate: **35.0%**[50](index=50&type=chunk) Contract Balances | Metric | August 2, 2025 (in thousands) | February 1, 2025 (in thousands) | | :------------------------------------------ | :----------------------------- | :----------------------------- | | Right of return assets | $2,201 | $1,732 | | Estimated gift card contract liability, net of breakage | $(27,949) | $(30,872) | | Estimated loyalty contract liability, net of breakage | $(1,647) | $(2,606) | | Sales return liabilities | $(3,285) | $(2,585) | Revenue Disaggregation by Department (Percentage of Net Sales) | Department | August 2, 2025 (13 Weeks) | August 3, 2024 (13 Weeks) | August 2, 2025 (26 Weeks) | August 3, 2024 (26 Weeks) | | :---------------------------------------- | :------------------------ | :------------------------ | :------------------------ | :------------------------ | | Camping | 14.5% | 16.4% | 11.8% | 13.1% | | Apparel | 6.3% | 6.6% | 6.1% | 6.1% | | Fishing | 18.3% | 16.8% | 15.5% | 14.2% | | Footwear | 6.1% | 6.3% | 5.7% | 5.8% | | Hunting and Shooting | 48.9% | 47.9% | 55.7% | 55.2% | | Optics, Electronics, Accessories, and Other | 5.9% | 6.0% | 5.2% | 5.6% | | Total | 100.0% | 100.0% | 100.0% | 100.0% | [(4) Property and Equipment](index=16&type=section&id=(4)%20Property%20and%20Equipment) Net property and equipment decreased to **$160.997 million** as of August 2, 2025, from **$167.838 million** on February 1, 2025, primarily due to accumulated depreciation and amortization Property and Equipment, Net | Metric | August 2, 2025 (in thousands) | February 1, 2025 (in thousands) | Change | | :-------------------------- | :----------------------------- | :----------------------------- | :----- | | Total Property and Equipment, Net | $160,997 | $167,838 | -4.0% | | Accumulated Depreciation and Amortization | $(260,383) | $(240,634) | +8.2% | [(5) Accrued Expenses](index=17&type=section&id=(5)%20Accrued%20Expenses) Total accrued expenses increased to **$99.002 million** as of August 2, 2025, from **$95.946 million** on February 1, 2025, driven by increases in book overdraft, sales and use tax payable, and other accrued expenses Accrued Expenses Highlights | Metric | August 2, 2025 (in thousands) | February 1, 2025 (in thousands) | Change | | :-------------------------- | :----------------------------- | :----------------------------- | :----- | | Total Accrued Expenses | $99,002 | $95,946 | +3.2% | | Book Overdraft | $22,832 | $21,929 | +4.1% | | Unearned Revenue | $32,514 | $36,600 | -11.2% | | Accrued Payroll and Related Expenses | $10,730 | $11,397 | -5.9% | [(6) Leases](index=17&type=section&id=(6)%20Leases) The company's operating leases typically have terms up to 15 years, with total lease expense for the twenty-six weeks ended August 2, 2025, at **$47.460 million**, and a weighted-average remaining lease term of **6.17 years** Lease Expense and Metrics (26 Weeks) | Metric (26 Weeks) | August 2, 2025 (in thousands) | August 3, 2024 (in thousands) | Change (YoY) | | :-------------------------- | :----------------------------- | :----------------------------- | :----------- | | Total Lease Expense | $47,460 | $46,750 | +1.5% | | Operating Cash Outflows from Operating Leases | $36,532 | $37,226 | -1.9% | Weighted-Average Lease Metrics (As of) | Metric (As of) | August 2, 2025 | August 3, 2024 | | :-------------------------- | :------------- | :------------- | | Weighted-average remaining lease term | 6.17 years | 6.00 years | | Weighted-average discount rate | 7.34% | 7.63% | [(7) Segments](index=18&type=section&id=(7)%20Segments) The company operates as a single reportable segment, Sportsman's Warehouse, assessing performance based on net income (loss) for resource allocation and competitive analysis - Operates as a **single reportable segment**: Sportsman's Warehouse[68](index=68&type=chunk) - Performance assessed based on net income (loss), used for resource allocation and competitive analysis[69](index=69&type=chunk)[70](index=70&type=chunk) [(8) Long-Term Debt](index=19&type=section&id=(8)%20Long-Term%20Debt) Long-term debt, primarily a term loan, increased to **$43.851 million** net of discount as of August 2, 2025, due to a **$20.0 million** delayed draw, with an interest rate of **10.44%** Long-Term Debt Highlights | Metric | August 2, 2025 (in thousands) | February 1, 2025 (in thousands) | Change | | :-------------------------- | :----------------------------- | :----------------------------- | :----- | | Term Loan, Net | $43,851 | $24,067 | +82.2% | | Outstanding Loans under Term Loan | $45,000 | $25,000 | +80.0% | - A **$20.0 million** delayed draw on the ABL term loan was made on July 30, 2025[76](index=76&type=chunk) - Interest rate on the Term Loan as of August 2, 2025, was **10.44%**[78](index=78&type=chunk) [(9) Revolving Line of Credit](index=21&type=section&id=(9)%20Revolving%20Line%20of%20Credit) Outstanding revolving loans increased to **$167.413 million** as of August 2, 2025, with **$107.741 million** available for borrowing under the **$350.0 million** facility, which matures on May 27, 2027 Revolving Line of Credit Highlights | Metric | August 2, 2025 (in thousands) | February 1, 2025 (in thousands) | Change | | :-------------------------- | :----------------------------- | :----------------------------- | :----- | | Outstanding Revolving Loans | $167,413 | $88,260 | +89.7% | | Available for Borrowing | $107,741 | N/A | N/A | | Interest Rate (as of Aug 2, 2025) | 5.78% | 5.74% | +0.04 pp | - Revolving Line of Credit matures on **May 27, 2027**[92](index=92&type=chunk) - Gross borrowings under the Revolving Line of Credit for the 26 weeks ended August 2, 2025, were **$691.412 million**, up from **$615.477 million** in the prior year[95](index=95&type=chunk) [(10) Income Taxes](index=23&type=section&id=(10)%20Income%20Taxes) For the thirteen weeks ended August 2, 2025, the company recognized income tax expense of **$0.097 million**, a shift from a **$2.057 million** benefit in the prior year, resulting in an effective tax rate of **-1.4%** Income Tax Highlights (13 Weeks) | Metric (13 Weeks) | August 2, 2025 (in thousands) | August 3, 2024 (in thousands) | Change (YoY) | | :-------------------------- | :----------------------------- | :----------------------------- | :----------- | | Income Tax Expense (Benefit) | $97 | $(2,057) | N/A (shift from benefit to expense) | | Effective Tax Rate | -1.4% | 25.8% | -27.2 pp | Income Tax Highlights (26 Weeks) | Metric (26 Weeks) | August 2, 2025 (in thousands) | August 3, 2024 (in thousands) | Change (YoY) | | :-------------------------- | :----------------------------- | :----------------------------- | :----------- | | Income Tax Expense (Benefit) | $(1,233) | $(7,526) | -83.6% (decrease in benefit) | | Effective Tax Rate | 4.2% | 23.9% | -19.7 pp | [(11) Stockholders' Equity](index=23&type=section&id=(11)%20Stockholders'%20Equity) Basic and diluted loss per share increased to **$(0.18)** for the 13 weeks and **$(0.74)** for the 26 weeks ended August 2, 2025, compared to **$(0.16)** and **$(0.64)** respectively in the prior year, with stock-based compensation expense decreasing Earnings Per Share and Stock-Based Compensation (13 Weeks) | Metric (13 Weeks) | August 2, 2025 | August 3, 2024 | Change (YoY) | | :-------------------------- | :------------- | :------------- | :----------- | | Basic Loss Per Share | $(0.18) | $(0.16) | +12.5% | | Diluted Loss Per Share | $(0.18) | $(0.16) | +12.5% | | Stock-Based Compensation Expense (in thousands) | $827 | $1,217 | -32.0% | Earnings Per Share and Stock-Based Compensation (26 Weeks) | Metric (26 Weeks) | August 2, 2025 | August 3, 2024 | Change (YoY) | | :-------------------------- | :------------- | :------------- | :----------- | | Basic Loss Per Share | $(0.74) | $(0.64) | +15.6% | | Diluted Loss Per Share | $(0.74) | $(0.64) | +15.6% | | Stock-Based Compensation Expense (in thousands) | $1,620 | $2,391 | -32.3% | - **1,653 shares** available for awards under the Amended 2019 Performance Incentive Plan as of August 2, 2025[102](index=102&type=chunk) - Issued **1,149 nonvested stock units** to employees and directors during the 26 weeks ended August 2, 2025, at a weighted average grant date fair value of **$1.28 per share**[108](index=108&type=chunk) [(12) Stock-Based Compensation](index=24&type=section&id=(12)%20Stock-Based%20Compensation) Total stock-based compensation expense decreased by approximately **32%** for both the 13 and 26 weeks ended August 2, 2025, compared to the prior year, with **1,149 nonvested stock units** issued during the 26-week period Stock-Based Compensation Expense | Metric | 13 Weeks Ended Aug 2, 2025 (in thousands) | 13 Weeks Ended Aug 3, 2024 (in thousands) | 26 Weeks Ended Aug 2, 2025 (in thousands) | 26 Weeks Ended Aug 3, 2024 (in thousands) | | :-------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Total Stock-Based Compensation Expense | $827 | $1,217 | $1,620 | $2,391 | - **1,653 shares** available for awards under the Amended and Restated 2019 Performance Incentive Plan as of August 2, 2025[102](index=102&type=chunk) - Issued **1,149 nonvested stock units** to employees and directors during the 26 weeks ended August 2, 2025, at a weighted average grant date fair value of **$1.28 per share**[108](index=108&type=chunk) [(13) Commitments and Contingencies](index=26&type=section&id=(13)%20Commitments%20and%20Contingencies) The company is involved in various legal matters, including a putative class action lawsuit challenging advance notice bylaws, but management is not aware of any matters with a probable and material financial impact - Involved in a putative class action lawsuit (Kogut v. Bejar, et al.) challenging advance notice bylaws, currently stayed[114](index=114&type=chunk) - Management is not aware of any legal matters with a probable and material impact on financial condition[113](index=113&type=chunk) [(14) Subsequent Events](index=26&type=section&id=(14)%20Subsequent%20Events) Jennifer Fall Jung was appointed Chief Financial Officer and Secretary effective August 18, 2025, replacing Jeff White, who transitioned to a consulting role and will receive severance benefits - **Jennifer Fall Jung** appointed CFO and Secretary, effective August 18, 2025[115](index=115&type=chunk) - **Jeff White** ceased serving as CFO and Secretary on August 17, 2025, transitioning to a consulting role[115](index=115&type=chunk) - Mr. White's separation agreement includes **12 months of base salary**, COBRA premiums for up to 12 months, and a pro-rated annual bonus[116](index=116&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results, highlighting macroeconomic impacts, key performance indicators, and detailed analysis of financial results [Overview](index=28&type=section&id=Overview) Sportsman's Warehouse is an outdoor sporting goods retailer operating as a single segment, committed to providing gear and service to inspire outdoor memories - Sportsman's Warehouse is an outdoor sporting goods retailer with **146 stores** in 32 states and an e-commerce platform[124](index=124&type=chunk) - The business operates as **one operating and reportable segment**[125](index=125&type=chunk) - Mission: provide outstanding gear and exceptional service to inspire outdoor memories[123](index=123&type=chunk) [Impact of Macroeconomic Conditions](index=28&type=section&id=Impact%20of%20Macroeconomic%20Conditions) The company's financial results are influenced by macroeconomic uncertainties, including international trade policies, increased tariff rates, inflation, elevated interest rates, and recession risks - Financial results are impacted by macroeconomic uncertainties, including international trade policies, increased tariff rates, inflation, elevated interest rates, and recession risks[127](index=127&type=chunk) - Anticipates a material increase in inventory costs due to increased tariff rates, particularly in Hunting and Shooting and Optics, Electronics, Accessories and Other departments[128](index=128&type=chunk) - Implemented cost reduction measures and reduced investments in new store openings; plans to open **one new store** in fiscal year 2025[129](index=129&type=chunk) [How We Assess the Performance of Our Business](index=29&type=section&id=How%20We%20Assess%20the%20Performance%20of%20Our%20Business) The company assesses performance using key measures such as net sales, same store sales, gross margin, and Adjusted EBITDA, while considering macroeconomic factors and regulatory changes - Key performance measures include net sales, same store sales, gross margin, selling, general and administrative expenses, income from operations, and Adjusted EBITDA[133](index=133&type=chunk) - Same store sales are influenced by macroeconomic factors, consumer preferences, regulatory changes, and competition[135](index=135&type=chunk) - The Oregon ballot measure (Senate Bill 243) on firearms and ammunition sales is delayed until **March 15, 2026**, pending Oregon Supreme Court review, which could significantly impact sales in Oregon stores if implemented[139](index=139&type=chunk)[141](index=141&type=chunk) - Key drivers to increasing total net sales include improving same store sales, increasing customer visits, expanding omni-channel capabilities, building community connections, opening new stores, and growing loyalty and credit card programs[144](index=144&type=chunk) - Key drivers to improving gross margin are increasing the product mix to higher margin products (especially apparel and footwear), improving buying opportunities, coordinating pricing strategies, and effective inventory management[146](index=146&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) This section provides a detailed analysis of the company's financial results for the thirteen and twenty-six weeks ended August 2, 2025, compared to the prior year Thirteen Weeks Ended August 2, 2025 vs. August 3, 2024 | Metric | August 2, 2025 (in thousands) | August 3, 2024 (in thousands) | Change (YoY) | | :-------------------------- | :----------------------------- | :----------------------------- | :----------- | | Net Sales | $293,899 | $288,734 | +1.8% | | Same Store Sales | +2.1% | N/A | N/A | | E-commerce Sales (as % of total) | >19% | N/A | +3% (YoY growth) | | Hunting and Shooting Net Sales | +$5.5M | N/A | N/A | | Fishing Net Sales | +$5.3M | N/A | N/A | | Ammunition Sales | +$3.6M | N/A | +10.0% | | Gross Profit | $93,949 | $90,018 | +4.4% | | Gross Profit Margin | 32.0% | 31.2% | +0.8 pp | | SG&A Expenses | $97,166 | $94,341 | +3.0% | | SG&A as % of Net Sales | 33.1% | 32.7% | +0.4 pp | | Interest Expense | $3,769 | $3,183 | +18.8% | | Income Tax Expense (Benefit) | $97 | $(2,057) | N/A (shift from benefit to expense) | Twenty-Six Weeks Ended August 2, 2025 vs. August 3, 2024 | Metric | August 2, 2025 (in thousands) | August 3, 2024 (in thousands) | Change (YoY) | | :-------------------------- | :----------------------------- | :----------------------------- | :----------- | | Net Sales | $543,002 | $532,974 | +1.9% | | Same Store Sales | +2.0% | N/A | N/A | | E-commerce Sales (as % of total) | >19% | N/A | +4% (YoY growth) | | Fishing Net Sales | +$8.2M | N/A | N/A | | Hunting and Shooting Net Sales | +$7.9M | N/A | N/A | | Ammunition Sales | +$4.1M | N/A | +5.3% | | Gross Profit | $169,592 | $163,804 | +3.5% | | Gross Profit Margin | 31.2% | 30.7% | +0.5 pp | | SG&A Expenses | $192,422 | $188,754 | +1.9% | | SG&A as % of Net Sales | 35.4% | 35.4% | 0.0 pp | | Interest Expense | $6,664 | $6,091 | +9.8% | | Income Tax Benefit | $(1,233) | $(7,526) | -83.6% (decrease in benefit) | [Seasonality](index=35&type=section&id=Seasonality) Net sales are typically higher in the third and fourth fiscal quarters due to hunting seasons and consumer holiday buying patterns, with weather conditions also significantly impacting demand - Net sales are typically higher in the third and fourth fiscal quarters due to hunting seasons and consumer holiday buying patterns[177](index=177&type=chunk) - Over the last three fiscal years, Q3 and Q4 generated approximately **26.4%** and **28.0%** of net sales, respectively[179](index=179&type=chunk) - New retail store openings may result in a temporary decline in operating profit due to initial expenses and fixed costs[180](index=180&type=chunk) - Weather conditions significantly affect outdoor activities and the demand for related products, impacting net sales[181](index=181&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is supported by cash, working capital, and available borrowing under its revolving credit facility, with primary cash requirements for seasonal working capital and capital expenditures Liquidity and Capital Resources Highlights (as of August 2, 2025) | Metric | Amount (in millions) | | :---------------------------------------- | :------------------- | | Cash and Cash Equivalents | $1.8 | | Working Capital | $75.5 | | Available Borrowing under Revolving Credit Facility | $107.7 | | Revolving Credit Facility Outstanding | $167.4 | | Term Loan Facility Outstanding | $45.0 | | Weighted Average Interest Rate on Debt | 6.77% | - Primary cash requirements are for seasonal working capital needs and capital expenditures related to ongoing operational needs and new system investments[184](index=184&type=chunk) - Expected capital expenditures for fiscal year 2025 are between **$20 million** and **$25 million**, primarily for strategic technological investments and general store maintenance[187](index=187&type=chunk) - Intends to prioritize the repayment of outstanding debt with any excess cash flow[184](index=184&type=chunk) - Net cash used in operating activities increased by approximately **$70.7 million** to **$86.8 million** for the 26 weeks ended August 2, 2025, primarily due to increased inventory purchases[191](index=191&type=chunk) - Net cash provided by financing activities increased by approximately **$73.7 million** to **$96.9 million** for the 26 weeks ended August 2, 2025, primarily due to increased borrowings under the revolving line of credit and term loan facilities[193](index=193&type=chunk) - The company was in compliance with all covenants under its credit agreements as of August 2, 2025[200](index=200&type=chunk) [Critical Accounting Estimates](index=38&type=section&id=Critical%20Accounting%20Estimates) There have been no significant changes to the company's critical accounting estimates as described in its Fiscal 2024 Form 10-K - There have been no significant changes to the company's critical accounting estimates as described in its Fiscal 2024 Form 10-K[203](index=203&type=chunk) [Non-GAAP Financial Measures](index=39&type=section&id=Non-GAAP%20Financial%20Measures) This section presents Adjusted EBITDA and Adjusted EBITDA margin, which management uses for business decision-making, evaluating store performance, and managing expenditures Adjusted EBITDA and Margin | Metric | 13 Weeks Ended Aug 2, 2025 (in thousands) | 13 Weeks Ended Aug 3, 2024 (in thousands) | 26 Weeks Ended Aug 2, 2025 (in thousands) | 26 Weeks Ended Aug 3, 2024 (in thousands) | | :-------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Adjusted EBITDA | $8,315 | $7,409 | $(721) | $(1,328) | | Adjusted EBITDA Margin | 2.8% | 2.6% | -0.1% | -0.2% | - Adjusted EBITDA is defined as net loss plus interest expense, income tax benefit, depreciation and amortization, stock-based compensation expense, transition and severance costs, and other non-indicative expenses[206](index=206&type=chunk) - Management uses Adjusted EBITDA and Adjusted EBITDA margin for business decision-making, evaluating store performance, developing budgets, and managing expenditures[206](index=206&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Sportsman's Warehouse is not required to provide detailed quantitative and qualitative disclosures about market risk - Not required to provide market risk disclosures as a smaller reporting company[213](index=213&type=chunk) [Item 4. Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) The company's management concluded that disclosure controls and procedures were effective as of August 2, 2025, acknowledging the inherent limitations of control systems and reporting no material changes in internal control over financial reporting - Disclosure controls and procedures were **effective** as of August 2, 2025[214](index=214&type=chunk) - No material changes in internal control over financial reporting during the 13 weeks ended August 2, 2025[216](index=216&type=chunk) - Management acknowledges inherent limitations in control systems, providing reasonable, not absolute, assurance[215](index=215&type=chunk) [PART II. OTHER INFORMATION](index=37&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 13 of the financial statements for details on legal proceedings, emphasizing that such matters are subject to inherent uncertainties and may involve significant defense and disposition costs - Refers to Note 13 for additional information on legal proceedings[219](index=219&type=chunk) - Legal outcomes are uncertain and may involve significant defense and disposition costs[220](index=220&type=chunk) [Item 1A. Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) The company states that there have been no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K for the fiscal year ended February 1, 2025 - No material changes in risk factors from the Fiscal 2024 Form 10-K[221](index=221&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports that there were no unregistered sales of equity securities or use of proceeds to disclose for the period - No unregistered sales of equity securities and use of proceeds to report[223](index=223&type=chunk) [Item 3. Defaults Upon Senior Securities](index=38&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports that there were no defaults upon senior securities during the period - No defaults upon senior securities to report[224](index=224&type=chunk) [Item 4. Mine Safety Disclosures](index=38&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - Not applicable[225](index=225&type=chunk) [Item 5. Other Information](index=38&type=section&id=Item%205.%20Other%20Information) The company reports that there is no other information to disclose under this item - No other information to report[226](index=226&type=chunk) [Item 6. Exhibits](index=39&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the 10-Q, including corporate governance documents, employment agreements, certifications, and XBRL documents - Lists various exhibits, including corporate governance documents, employment agreements, and certifications[228](index=228&type=chunk) [Signatures](index=40&type=section&id=Signatures) The report is signed by Paul Stone, President and Chief Executive Officer, and Jennifer Fall Jung, Chief Financial Officer, on September 4, 2025, certifying its accuracy - Signed by **Paul Stone** (President and CEO) and **Jennifer Fall Jung** (CFO) on **September 4, 2025**[234](index=234&type=chunk)

[Executive Summary & Business Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Highlights) Sportsman's Warehouse achieved its second consecutive quarter of positive same-store sales growth in Q2 FY2025, driven by effective transformation strategies and improved gross margins, leading to a raised full-year outlook [Second Quarter 2025 Performance Highlights](index=1&type=section&id=Second%20Quarter%202025%20Performance%20Highlights) Sportsman's Warehouse reported a 2.1% increase in same-store sales for Q2 FY2025, marking its second consecutive quarter of positive comparable sales, with gross margin improving by 80 basis points and a raised full-year 2025 outlook - Same store sales increased **2.1%** over last year, outperforming the Q2 Adjusted NICS data[1](index=1&type=chunk) - Gross margin improved by **80 basis points** compared to last year[1](index=1&type=chunk) - The company has improved its full year 2025 Outlook[1](index=1&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Paul Stone highlighted the effectiveness of their transformation strategy, driven by localized assortments and digital-first marketing, leading to positive same-store sales growth and outperformance in the firearms business, with a focus on seasonal merchandising and working capital efficiencies to support debt reduction - The company achieved **2.1% same store sales growth**, marking the second consecutive quarter of positive comps, despite consumer headwinds[2](index=2&type=chunk) - Focus on localizing assortments and shifting to digital-first marketing is driving results, with specific markets like Alaska showing **high single-digit growth**[2](index=2&type=chunk) - The firearms business outperformed the industry, indicating continued market share gains[2](index=2&type=chunk) - Management is focused on executing seasonal merchandising plans to drive working capital efficiencies and support further debt reduction[2](index=2&type=chunk) [Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) For Q2 and YTD FY2025, Sportsman's Warehouse reported increased net sales and improved gross margins, primarily from Fishing and Hunting & Shooting Sports, despite widening net losses, while Adjusted EBITDA showed improvement [Second Quarter 2025 Financial Results](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Results) For the thirteen weeks ended August 2, 2025, Sportsman's Warehouse reported a 1.8% increase in net sales, driven by strong performance in Fishing and Hunting & Shooting Sports, with gross margin improving to 32.0%, but net loss widened to $(7.1) million and diluted loss per share increased to $(0.18), while Adjusted EBITDA saw an improvement Q2 FY2025 vs. Q2 FY2024 Key Financials (Thirteen Weeks Ended) | Metric | Q2 FY2025 (in thousands) | Q2 FY2024 (in thousands) | YoY Change (in thousands) | YoY Change (%) | | :--------------------------------- | :----------------------- | :----------------------- | :------------------------ | :------------- | | Net sales | $293,899 | $288,734 | $5,165 | 1.8% | | Same store sales growth | 2.1% | N/A | N/A | N/A | | Gross profit | $93,949 | $90,018 | $3,931 | 4.4% | | Gross margin | 32.0% | 31.2% | 0.8 pp | N/A | | SG&A expenses | $97,166 | $94,341 | $2,825 | 3.0% | | SG&A as % of net sales | 33.1% | 32.7% | 0.4 pp | N/A | | Net loss | $(7,083) | $(5,906) | $(1,177) | -19.9% | | Adjusted net loss | $(4,653) | $(5,304) | $651 | 12.3% | | Diluted loss per share | $(0.18) | $(0.16) | $(0.02) | -12.5% | | Adjusted diluted loss per share | $(0.12) | $(0.14) | $0.02 | 14.3% | | Adjusted EBITDA | $8,315 | $7,409 | $906 | 12.2% | - Net sales increase was primarily due to increased sales in Fishing and Hunting and Shooting Sports departments, eCommerce channel growth, and improved in-stocks, partially offset by softer sales in other departments[3](index=3&type=chunk) - Gross margin improvement was largely driven by improved overall product margins from healthier inventory and increased sales from the fishing department, which carries a relatively higher gross margin[3](index=3&type=chunk) - SG&A expenses increased due to reinvestment in customer-facing areas, including store labor and digital marketing, to drive sales and omnichannel traffic[3](index=3&type=chunk) [Year-to-Date (Twenty-Six Weeks) Financial Results](index=2&type=section&id=Year-to-Date%20%28Twenty-Six%20Weeks%29%20Financial%20Results) For the twenty-six weeks ended August 2, 2025, net sales increased by 1.9%, with same-store sales up 2.0%, and gross profit as a percentage of net sales improved to 31.2%, however, the net loss for the period widened to $(28.3) million and diluted loss per share increased to $(0.74), while Adjusted EBITDA remained negative but improved compared to the prior year YTD FY2025 vs. YTD FY2024 Key Financials (Twenty-Six Weeks Ended) | Metric | YTD FY2025 (in thousands) | YTD FY2024 (in thousands) | YoY Change (in thousands) | YoY Change (%) | | :--------------------------------- | :------------------------ | :------------------------ | :------------------------ | :------------- | | Net sales | $543,002 | $532,974 | $10,028 | 1.9% | | Same store sales growth | 2.0% | N/A | N/A | N/A | | Gross profit | $169,592 | $163,804 | $5,788 | 3.5% | | Gross margin | 31.2% | 30.7% | 0.5 pp | N/A | | SG&A expenses | $192,422 | $188,754 | $3,668 | 1.9% | | SG&A as % of net sales | 35.4% | 35.4% | 0.0 pp | N/A | | Net loss | $(28,337) | $(23,972) | $(4,365) | -18.2% | | Adjusted net loss | $(20,261) | $(23,107) | $2,846 | 12.3% | | Diluted loss per share | $(0.74) | $(0.64) | $(0.10) | -15.6% | | Adjusted diluted loss per share | $(0.53) | $(0.61) | $0.08 | 13.1% | | Adjusted EBITDA | $(721) | $(1,328) | $607 | 45.7% | - Net sales increase was primarily due to increased sales in Fishing and Hunting and Shooting Sports departments driven by improved core product in-stocks, and eCommerce channel growth, partially offset by softer sales in other departments[6](index=6&type=chunk) - Gross profit as a percentage of net sales increased primarily due to favorable mix and rate improvements from the fishing business and improved overall margins from healthier inventory[6](index=6&type=chunk) - SG&A expenses increased due to reinvestment into customer-facing and sales-driving areas, including store payroll, partially offset by leverage gained from higher sales[6](index=6&type=chunk) [Balance Sheet and Capital Allocation](index=2&type=section&id=Balance%20Sheet%20and%20Capital%20Allocation) As of August 2, 2025, the company reported $195.1 million in net debt and $109.5 million in total liquidity, with inventory strategically increased for key hunting seasons and a deferred draw feature exercised on the term loan [Balance Sheet Highlights](index=2&type=section&id=Balance%20Sheet%20Highlights) As of August 2, 2025, the company reported net debt of $195.1 million and total inventory of $443.5 million, which was intentionally pulled forward for key hunting seasons, with total assets increasing to $948.8 million and total liabilities also rising to $739.9 million Balance Sheet Highlights (as of August 2, 2025 vs. February 1, 2025) | Metric | August 2, 2025 (in thousands) | February 1, 2025 (in thousands) | Change (in thousands) | | :-------------------------- | :---------------------------- | :------------------------------ | :-------------------- | | Cash and cash equivalents | $1,804 | $2,832 | $(1,028) | | Merchandise inventories | $443,499 | $341,958 | $101,541 | | Total current assets | $468,308 | $366,002 | $102,306 | | Total assets | $948,853 | $852,102 | $96,751 | | Revolving line of credit | $151,215 | $74,654 | $76,561 | | Term loan, net | $43,851 | $24,067 | $19,784 | | Total current liabilities | $392,831 | $283,963 | $108,868 | | Total liabilities | $739,966 | $616,398 | $123,568 | | Total stockholders' equity | $208,887 | $235,704 | $(26,817) | - Net debt stood at **$195.1 million**, comprising **$151.2 million** from the revolving credit facility and **$43.9 million** from the term loan, offset by **$1.8 million** in cash[5](index=5&type=chunk) - Inventory increased by **$80.1 million** compared to the same period in FY2024, intentionally pulled forward for key late summer and fall hunting seasons, representing peak inventory for the year[5](index=5&type=chunk) [Capital Allocation and Liquidity](index=2&type=section&id=Capital%20Allocation%20and%20Liquidity) The company's total liquidity was $109.5 million at the end of Q2 FY2025, supported by $107.7 million availability on the revolving credit facility and $1.8 million in cash, and they also strengthened the balance sheet by exercising a $20 million deferred draw feature on the term loan Liquidity as of August 2, 2025 | Metric | Amount (in millions) | | :-------------------------------- | :------------------- | | Total liquidity | $109.5 | | Availability on revolving credit facility | $107.7 | | Cash and cash equivalents | $1.8 | - The Company exercised its **$20 million deferred draw feature** on the term loan, further strengthening the balance sheet[11](index=11&type=chunk) [Cash Flow Statement](index=9&type=section&id=Cash%20Flow%20Statement) For the twenty-six weeks ended August 2, 2025, net cash used in operating activities significantly increased due to higher inventories, while financing activities provided substantial cash through borrowings [Cash Flow Statement Highlights](index=9&type=section&id=Cash%20Flow%20Statement%20Highlights) For the twenty-six weeks ended August 2, 2025, net cash used in operating activities significantly increased to $(86.8) million, primarily due to a substantial increase in merchandise inventories, with net cash used in investing activities also increasing, while net cash provided by financing activities saw a large increase due to net borrowings on the line of credit and term loan Cash Flow Highlights (Twenty-Six Weeks Ended) | Metric | YTD FY2025 (in thousands) | YTD FY2024 (in thousands) | Change (in thousands) | | :-------------------------------------- | :------------------------ | :------------------------ | :-------------------- | | Net cash used in operating activities | $(86,799) | $(16,132) | $(70,667) | | Net cash used in investing activities | $(11,169) | $(7,631) | $(3,538) | | Net cash provided by financing activities | $96,940 | $23,182 | $73,758 | | Net change in cash and cash equivalents | $(1,028) | $(581) | $(447) | | Cash and cash equivalents at end of period | $1,804 | $2,560 | $(756) | - A significant change in operating assets and liabilities was driven by a **$(101.5) million increase** in merchandise inventories in YTD FY2025, compared to a **$(8.7) million increase** in YTD FY2024[26](index=26&type=chunk) - Net cash provided by financing activities was primarily driven by **$76.6 million** in net borrowings on the line of credit and **$20.0 million** in borrowings on the term loan[26](index=26&type=chunk) [Fiscal Year 2025 Outlook](index=3&type=section&id=Fiscal%20Year%202025%20Outlook) Sportsman's Warehouse is improving its sales guidance for fiscal year 2025, expecting flat to 3.5% net sales growth, reaffirming Adjusted EBITDA, and planning capital expenditures for technology and store maintenance [Fiscal Year 2025 Outlook Details](index=3&type=section&id=Fiscal%20Year%202025%20Outlook%20Details) Sportsman's Warehouse is improving its sales guidance for fiscal year 2025, expecting net sales to be flat to up 3.5%, reaffirming its adjusted EBITDA guidance, and anticipating capital expenditures between $20 million and $25 million, primarily for technology investments and general store maintenance, with one new store planned for November 2025 - Net sales are expected to be in the range of **flat to up 3.5%** for fiscal year 2025[7](index=7&type=chunk) - Adjusted EBITDA is reaffirmed to be in the range of **$33 million to $45 million**[7](index=7&type=chunk) - Capital expenditures for 2025 are expected to be in the range of **$20 million to $25 million**, primarily for technology investments and store maintenance[7](index=7&type=chunk) - The company anticipates opening **one new store** in November 2025 in Surprise, Arizona[7](index=7&type=chunk) - The company expects to exit 2025 with total inventory below last year's level, demonstrating improved inventory productivity[7](index=7&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and reconciles non-GAAP financial measures like adjusted net loss and adjusted EBITDA, providing a clearer view of core operating performance by excluding non-recurring or non-indicative expenses [Definition and Rationale](index=3&type=section&id=Definition%20and%20Rationale) This section defines non-GAAP financial measures such as adjusted net loss, adjusted diluted loss per share, and adjusted EBITDA, which are used by management and investors to evaluate ongoing operations and compare performance consistently, excluding certain non-recurring or non-indicative expenses to provide a clearer view of core operating performance - Adjusted net (loss) income is defined as net (loss) income plus expenses related to director and officer transition costs, estimated tax benefit from deferred tax asset valuation allowance, and expenses not indicative of ongoing operations[10](index=10&type=chunk) - Adjusted EBITDA is defined as net (loss) income plus interest expense, income tax expense (benefit), depreciation and amortization, stock-based compensation expense, director and officer transition costs, and other non-indicative expenses[10](index=10&type=chunk)[12](index=12&type=chunk) - These non-GAAP measures provide comparable financial data for internal analysis and supplemental information for investors, facilitating a more meaningful comparison of performance on a period-over-period basis by excluding unusual or non-recurring items[13](index=13&type=chunk) [Reconciliations](index=10&type=section&id=Reconciliations) The report provides detailed reconciliations of GAAP net loss to adjusted net loss, GAAP diluted loss per share to adjusted diluted loss per share, and GAAP net loss to adjusted EBITDA for both the thirteen and twenty-six-week periods, highlighting the specific adjustments made for non-GAAP reporting [Adjusted Net Loss and Adjusted Diluted Loss Per Share](index=10&type=section&id=Adjusted%20Net%20Loss%20and%20Adjusted%20Diluted%20Loss%20Per%20Share) This section presents the reconciliation of GAAP net loss to adjusted net loss and diluted loss per share, detailing specific adjustments for non-GAAP reporting Reconciliation of GAAP Net Loss to Adjusted Net Loss and EPS (in thousands, except per share data) | Metric | Q2 FY2025 (13 Weeks) | Q2 FY2024 (13 Weeks) | YTD FY2025 (26 Weeks) | YTD FY2024 (26 Weeks) | | :-------------------------------------- | :------------------- | :------------------- | :-------------------- | :-------------------- | | Net loss (GAAP) | $(7,083) | $(5,906) | $(28,337) | $(23,972) | | Director and officer transition costs | $500 | $106 | $500 | $430 | | Valuation allowance | $1,843 | $- | $7,489 | $- | | Cancelled contract | $- | $706 | $- | $706 | | Legal accrual | $283 | $- | $283 | $- | | Less tax benefit | $(196) | $(210) | $(196) | $(271) | | Adjusted net loss | $(4,653) | $(5,304) | $(20,261) | $(23,107) | | Diluted loss per share (GAAP) | $(0.18) | $(0.16) | $(0.74) | $(0.64) | | Adjusted diluted loss per share | $(0.12) | $(0.14) | $(0.53) | $(0.61) | [Adjusted EBITDA](index=11&type=section&id=Adjusted%20EBITDA) This section provides a reconciliation of GAAP net loss to Adjusted EBITDA, outlining adjustments for interest, taxes, depreciation, amortization, and other non-operating expenses Reconciliation of GAAP Net Loss to Adjusted EBITDA (in thousands) | Metric | Q2 FY2025 (13 Weeks) | Q2 FY2024 (13 Weeks) | YTD FY2025 (26 Weeks) | YTD FY2024 (26 Weeks) | | :-------------------------------------- | :------------------- | :------------------- | :-------------------- | :-------------------- | | Net loss (GAAP) | $(7,083) | $(5,906) | $(28,337) | $(23,972) | | Interest expense | $3,769 | $3,183 | $6,664 | $6,091 | | Income tax benefit | $97 | $(2,057) | $(1,233) | $(7,526) | | Depreciation and amortization | $9,922 | $10,160 | $19,782 | $20,552 | | Stock-based compensation expense | $827 | $1,217 | $1,620 | $2,391 | | Director and officer transition costs | $500 | $106 | $500 | $430 | | Cancelled contract | $- | $706 | $- | $706 | | Legal accrual | $283 | $- | $283 | $- | | Adjusted EBITDA | $8,315 | $7,409 | $(721) | $(1,328) | [Additional Company Information](index=3&type=section&id=Additional%20Company%20Information) This section provides essential company details, including forward-looking statements with associated risk factors, an overview of Sportsman's Warehouse, and investor contact information [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements regarding future debt reduction, inventory levels, sales guidance, Adjusted EBITDA, capital expenditures, and new store openings, including a cautionary note about various risk factors that could cause actual results to differ materially from projections, such as government regulations, economic conditions, competition, and consumer demands - Forward-looking statements include plans to reduce debt levels and exit 2025 with total inventory below last year's level[14](index=14&type=chunk) - Key risk factors include government regulations (especially firearms), general economic and market conditions, concentration of stores in the Western U.S., intense industry competition, changes in consumer demands, and macroeconomic conditions like inflation and interest rates[14](index=14&type=chunk)[15](index=15&type=chunk) [About Sportsman's Warehouse](index=5&type=section&id=About%20Sportsman%27s%20Warehouse) Sportsman's Warehouse Holdings, Inc. is an outdoor specialty retailer dedicated to serving a wide range of outdoor enthusiasts by providing gear and exceptional service to inspire outdoor memories - Sportsman's Warehouse is an outdoor specialty retailer focused on meeting the needs of seasoned outdoor veterans, first-time participants, and everyone in between[16](index=16&type=chunk) [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) A conference call to discuss the second quarter 2025 financial results was scheduled for September 4, 2025, at 5:00 PM Eastern Time, accessible via webcast on the company's investor relations website - A conference call for Q2 2025 financial results was scheduled for September 4, 2025, at 5:00 PM ET, accessible via webcast on www.sportsmans.com[9](index=9&type=chunk) [Investor Contact](index=5&type=section&id=Investor%20Contact) For investor inquiries, Riley Timmer, Vice President of Investor Relations, can be contacted at (801) 566-6681 or investors@sportsmans.com - Investor Contact: Riley Timmer, Vice President, Investor Relations, (801) 566-6681, investors@sportsmans.com[17](index=17&type=chunk)

Core Insights - Sportsman's Warehouse reported a 2.1% increase in same store sales compared to the previous year, marking the second consecutive quarter of positive comparable sales despite challenging consumer conditions [2][5] - The company's gross margin improved by 80 basis points year-over-year, reaching 32.0% of net sales, driven by better product margins and increased sales in the fishing department [5][6] - The company has raised its fiscal year 2025 sales outlook, expecting net sales to be flat to up 3.5% and reaffirming adjusted EBITDA guidance of $33 million to $45 million [8] Financial Performance - For the thirteen weeks ended August 2, 2025, net sales were $293.9 million, a 1.8% increase from $288.7 million in the same period last year [5][19] - The net loss for the quarter was $(7.1) million, compared to a net loss of $(5.9) million in the prior year, while adjusted net loss improved to $(4.7) million from $(5.3) million [5][11] - Adjusted EBITDA for the quarter was $8.3 million, an increase from $7.4 million in the corresponding prior-year period [5][32] Inventory and Capital Allocation - The company ended the second quarter with inventory of $443.5 million, an increase of $80.1 million year-over-year, as inventory was strategically built ahead of key hunting seasons [11][24] - Total liquidity as of the end of the second quarter was $109.5 million, consisting of $107.7 million available on the revolving credit facility and $1.8 million in cash [11][24] - Capital expenditures for 2025 are expected to be in the range of $20 million to $25 million, primarily for technology investments [8] Strategic Focus - The company is focusing on localizing product assortments and enhancing digital marketing efforts, which have shown positive results in certain markets [2] - The firearms business has outperformed the industry, indicating continued market share gains [2] - The company aims to improve working capital efficiency and reduce debt levels in the latter half of 2025 [8]

Core Viewpoint - Sportsman's Warehouse Holdings, Inc. will hold its quarterly conference call to discuss the second quarter 2025 financial results on September 4, 2025, at 5:00 p.m. Eastern Time [1]. Group 1 - A live audio webcast of the conference call will be available on the Company's investor relations website [2]. - A replay of the webcast will be accessible within two hours of the call's conclusion through September 11, 2025 [2]. Group 2 - Sportsman's Warehouse is an outdoor specialty retailer catering to both seasoned outdoor veterans and first-time participants, providing gear and exceptional service [3]. - Additional information and press releases about the Company can be found in the Investor Relations section of the Company's website [3]. Group 3 - Investor contact for Sportsman's Warehouse is Riley Timmer, VP of Investor Relations, available at (801) 304-2816 or via email at investors@sportsmans.com [4].

Group 1 - Sportsman's Warehouse (SPWH) is outperforming its peers in the Retail-Wholesale sector with a year-to-date return of approximately 38.2%, compared to the sector average of 6.7% [4] - The Zacks Consensus Estimate for SPWH's full-year earnings has increased by 16.9% in the past quarter, indicating a stronger analyst sentiment and improving earnings outlook [4] - Sportsman's Warehouse is ranked 2 (Buy) in the Zacks Rank system, which highlights stocks with characteristics likely to outperform the market in the near term [3] Group 2 - The Retail-Wholesale sector consists of 204 individual stocks and is currently ranked 13 in the Zacks Sector Rank [2] - Sportsman's Warehouse belongs to the Retail - Apparel and Shoes industry, which includes 40 companies and is ranked 212 in the Zacks Industry Rank, with an average loss of 8.3% year-to-date [6] - Another stock in the Retail-Wholesale sector, Wayfair (W), has also outperformed with a year-to-date return of 41.8% and a Zacks Rank of 1 (Strong Buy) [5][7]

Business Transformation & Strategy - The company is continuing its transformation strategy while strengthening retail fundamentals[6] - Key initiatives include omni-channel marketing reinvention, customer experience improvements, capital allocation and debt pay down, and investments in culture, people, tech and processes[7] - The company has reduced inventory by $12.7 million year-over-year and reduced debt by $27.3 million[7] 2025 Plan & Growth Focus - The company aims to drive growth by focusing on hunting, fishing, and personal protection markets[9, 10] - The company's current market share in hunting is 4% of a $12 billion total addressable market[13] - The company's current market share in fishing is 1% of a $13 billion total addressable market[14] Hunting & Fishing Market Growth - Hunting participation increased from 10.6 million in 2016 to 14.4 million in 2022, with a CAGR of +5.2%[17] - Fishing participation increased from 34.7 million in 2016 to 39.9 million in 2022, with a CAGR of +5.2%[22] Reinforcing Local Knowledge & Expertise - The company aims to be known as the leading local expert for hunting & fishing solutions[28] - The company will reinforce local knowledge through assortment and outfitters as influencers[49] - 72% of U.S. firearm owners cite protection as the major reason for ownership[63]

Group 1 - Canada Goose is part of the Retail-Wholesale sector, which includes 209 individual stocks and currently holds a Zacks Sector Rank of 10 [2] - Canada Goose has a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions, with a 2.9% increase in the consensus estimate for full-year earnings over the past quarter [3] - Year-to-date, Canada Goose has returned approximately 16%, significantly outperforming the average gain of 2.6% for the Retail-Wholesale group [4] Group 2 - Canada Goose belongs to the Retail - Apparel and Shoes industry, which consists of 39 companies and currently ranks 187 in the Zacks Industry Rank, with an average loss of 15.2% for the industry this year [6] - Sportsman's Warehouse, another stock in the Retail-Wholesale sector, has returned 23.8% year-to-date and also holds a Zacks Rank of 2 (Buy) [4][5] - Investors should continue to monitor Canada Goose and Sportsman's Warehouse for their strong performance in the Retail-Wholesale sector [7]