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].

Core Insights - Sportsman's Warehouse Holdings, Inc. has promoted Susan Sanderson to Chief Marketing Officer, a move aimed at strengthening the company's leadership in marketing, which is crucial for both immediate and long-term growth plans [1][2] Group 1: 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] - The promotion of Sanderson is expected to enhance brand awareness and position Sportsman's Warehouse for growth, as she has already demonstrated a transformation-focused mindset that has positively impacted the business [2][3] Group 2: Growth and Customer Engagement - Sanderson emphasized the importance of sharpening the brand, strengthening customer connections, and driving growth across all channels as part of her focus as Chief Marketing Officer [3] - The company aims to build a competitive advantage by listening to customers and turning insights into actionable strategies, positioning itself as a trusted destination for hunting and fishing gear [3] Group 3: Company Overview - Sportsman's Warehouse is an outdoor specialty retailer catering to a wide range of customers, from seasoned veterans to first-time participants, providing exceptional gear and service to inspire outdoor experiences [4]

Store Operations and Expansion - Sportsman's Warehouse operates 146 stores across 32 states, with an average store size of approximately 37,000 gross square feet[45]. - The company plans to open one new store in fiscal year 2025, continuing its strategy of expanding its store base[43]. - The average net investment for a new store is approximately $2.9 million, with initial inventory costs averaging $1.8 million[35]. - The company maintains a disciplined approach to new store development, utilizing comprehensive market research and technology to select optimal locations[32]. - The company plans to open one new store in fiscal year 2025, with a net investment of approximately $2.9 million per store and initial inventory costs averaging $1.8 million[56]. - The company utilizes a rigorous site selection process based on local demographics, traffic patterns, and hunting and fishing license density[52]. - The company faces risks in expanding into new markets, with some new stores not generating historically expected Adjusted EBITDA margins[194]. - Delays in opening new stores due to various factors could adversely affect financial results and profitability[195]. Financial Performance and Sales - In fiscal year 2024, approximately 46% of unit sales and 20% of dollar sales were consumables, driving repeat traffic and increasing average ticket value[33]. - Sportsman's Warehouse aims to achieve four-wall Adjusted EBITDA margins of 10% or more for most new stores after 24 months of operation[35]. - The average four-wall Adjusted EBITDA margin target after 24 months of a new store opening is over 10%[56]. - The company experienced decreased revenue and operated at a net loss during fiscal years 2024 and 2023 due to elevated inflationary pressures and higher interest rates[164]. - The company incurs additional expenses in the third and fourth fiscal quarters due to higher sales volume and increased staffing, impacting overall profitability[117]. - Approximately 26.4% and 28.0% of net sales were generated in the third and fourth fiscal quarters, respectively, due to seasonal factors such as hunting seasons and holiday buying patterns[117]. - The company generated 26.4% and 28% of its annual net sales in the third and fourth fiscal quarters, respectively, indicating significant seasonal fluctuations in sales[170]. Product Offerings and Sales Composition - The Hunting and Shooting department contributed 57.4% of total sales in fiscal year 2024, maintaining its position as the largest sales contributor[70]. - Private label offerings accounted for approximately 4.4% of total sales, while special make-up offerings contributed an additional 2.5%[65]. - The company employs a "good, better, best" merchandise strategy, focusing on "better" products to meet diverse customer needs[64]. - The camping department represented approximately 11.7% of net sales in fiscal year 2024, catering to both casual and heavy-use campers[71]. - Fishing represented approximately 10.3% of net sales during fiscal year 2024[73]. - Footwear accounted for approximately 6.3% of net sales during fiscal year 2024[74]. - Hunting and shooting is the largest merchandise department, representing approximately 57.4% of net sales during fiscal year 2024[75]. - Optics, electronics, accessories, and other products represented approximately 6.8% of net sales during fiscal year 2024[76]. E-commerce and Omni-channel Strategy - In fiscal year 2024, e-commerce sales accounted for over 20% of total sales, with the website receiving more than 112 million visits[61]. - Sportsman's Warehouse is focused on leveraging its omni-channel presence to increase same-store sales through various customer experience initiatives[39]. - The retail stores feature kiosks for online orders, enhancing the omni-channel shopping experience[59]. Customer Engagement and Loyalty - As of February 1, 2025, there were more than 4.9 million participants in the loyalty program, generating approximately 53% of revenue from loyalty customers[79]. Vendor Relationships and Supply Chain - The company has established strong vendor relationships, allowing for favorable terms and competitive pricing for customers[33]. - The company purchased merchandise from approximately 1,100 vendors during fiscal year 2024, with no vendor accounting for more than 10% of total purchases[83]. - The company relies on a single distribution center in Salt Lake City, Utah, which poses risks related to natural disasters or disruptions that could impair merchandise delivery[172]. - Supply chain disruptions and vendor relationships are crucial, as losing key vendors could adversely impact product availability and profitability[175]. Labor and Training - The company employs approximately 5,100 outfitters, including 2,050 full-time and 3,050 part-time outfitters, with no labor union representation[142]. - The company emphasizes extensive training for outfitters, with approximately 20 hours of initial training and 16 hours of ongoing training annually for sales associates[144]. - Labor costs and the ability to attract and retain qualified personnel are critical to the company's success, with competition for skilled labor increasing[191]. Regulatory and Compliance Issues - The company is subject to various federal, state, and local laws regarding firearm sales, including the National Firearms Act and the Gun Control Act, which require compliance with strict regulations[121]. - The company has implemented company-wide standard operating procedures to ensure compliance with applicable laws and regulations related to the sale of firearms and ammunition[132]. - The company has never had an FFL revoked since its operations began in 1986, demonstrating strong compliance with federal regulations[133]. Market Conditions and Risks - U.S. outdoor activities and sporting goods retail sales total over $170 billion annually[101]. - Anglers and hunters spent more than $60 billion on equipment in 2022, approximately 40% higher than in 2016[103]. - The company’s retail operations are concentrated in the Western United States, making it susceptible to regional economic downturns and adverse weather conditions[165]. - The company’s sales of firearms represent a significant percentage of net sales, and new regulations could materially adversely impact profitability[159]. - The company is exposed to litigation risks related to the products it sells, particularly firearms and ammunition, which could adversely affect profitability[160]. - Changes in consumer preferences and macroeconomic factors could lead to fluctuations in same-store sales, affecting stock price volatility[169]. - The company is vulnerable to cybersecurity risks, including potential data breaches and system disruptions, which could negatively impact operations and reputation[201]. Marketing and Advertising - The total marketing expense for fiscal year 2024 was approximately $17.4 million[90]. - The company faces competition in the outdoor activities and sporting goods market, which may require increased spending on advertising and promotion[167]. Challenges and Future Outlook - The company has experienced elevated levels of inventory shrink, which has adversely affected its financial condition and operational results[171]. - The company may face increased expenses and delays due to new tariffs and trade restrictions imposed by the U.S. government on imports from certain countries[178]. - In fiscal year 2023, 90 stores were impacted by minimum wage increases, leading to increased selling, general, and administrative expenses[192]. - In fiscal year 2024, 55 stores are expected to be affected by minimum wage increases, potentially increasing labor costs and impacting financial results[192]. - The company anticipates that hiring additional personnel and system enhancements will require capital expenditures, impacting operating results[214]. - The company may encounter challenges in integrating acquired operations, affecting overall business performance[220].

Financial Data and Key Metrics Changes - Q4 net sales were $340.4 million, down from $370.4 million in the prior year, which included a 53rd week contributing $27.1 million [24][25] - Adjusted EBITDA for Q4 was $14.6 million, compared to $5.3 million in the same quarter last year, marking a nearly 300% increase in profitability [30] - The company ended the year with liquidity of $131.1 million, an increase of $40 million compared to the end of the previous year [9][31] - Net loss for Q4 was $8.7 million, unchanged from the prior year, but adjusted net income was $1.6 million compared to an adjusted net loss of $7.5 million last year [30] Business Line Data and Key Metrics Changes - Firearms unit sales increased mid-single digits in Q4, despite a 1.7% year-over-year decline in the hunting and shooting sports department [28][10] - Fishing department sales were up 10.3% in Q4, while camping sales increased by 5.2% [26][27] - E-commerce sales were up double digits in Q4, driven by improved marketing and user experience [11] Market Data and Key Metrics Changes - The adjusted NICS data showed a 4.5% decline in the firearms industry, but the company outperformed this trend [9][10] - Fishing continues to grow steadily, with a ten-year CAGR of about 5% [13] Company Strategy and Development Direction - The company aims to return to same-store sales growth in 2025 by focusing on core hunting and fishing solutions [12] - Four strategic initiatives for 2025 include narrowing inventory focus, leveraging local connections, becoming an authority in personal protection, and strengthening brand awareness [14][21] - The company is committed to improving inventory management and operational efficiency to enhance profitability [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in improving sales trends and the effectiveness of the turnaround strategy [9][12] - The company anticipates challenges in Q1 due to calendar shifts but expects stronger performance in Q2 and Q3 [42][43] - Management noted that consumer behavior has not significantly changed due to tariff headlines, attributing any sales fluctuations to timing rather than a slowdown [61][62] Other Important Information - The company ended the year with a net debt balance of $98.7 million and generated $19.7 million of free cash flow [31][33] - Capital expenditures for 2024 were approximately $14.6 million, primarily for store maintenance and technology investments [32] Q&A Session Summary Question: Trends in same-store sales and performance in February - Management noted positive trends in February, continuing from January, despite a shift in holiday timing affecting Q1 [39][40] Question: Store opening plans and timing - One new store is planned to open at the end of Q3 or beginning of Q4 [44] Question: Free cash flow conversion from EBITDA guidance - Management expressed confidence in generating positive free cash flow through improved top-line profitability and inventory efficiency [46][48] Question: Trade down in firearms and market share opportunities - Management indicated that while average unit prices are down, they are focused on being in stock with the right products to meet customer demand [56][57] Question: Impact of tariffs on consumer behavior - Management stated that they have not seen significant changes in consumer behavior due to tariffs, attributing sales fluctuations to timing of promotions [61][62] Question: E-commerce growth and fulfillment - E-commerce sales accounted for over 17% of total business, with 75% of e-commerce demand fulfilled at store locations [91] Question: Gross margin outlook for 2025 - Management did not provide specific gross margin guidance but indicated potential for improvement through better inventory management and focus on core goods [94][96]

Financial Data and Key Metrics Changes - Q4 net sales were $340.4 million, down from $370.4 million in the prior year, reflecting a 0.9% decline when adjusted for the extra week in 2023 [34][35] - Q4 adjusted EBITDA increased to $14.6 million from $5.3 million in the previous year, marking a nearly 300% increase in profitability [42] - Gross margin improved to 30.4% from 26.8% year-over-year, a 360-basis point increase [39] - Net loss for Q4 was $8.7 million, unchanged from the prior year, but adjusted net income was $1.6 million compared to an adjusted net loss of $7.5 million in the previous year [41][42] - Inventory decreased by $12.7 million year-over-year, ending at $342 million [44] Business Line Data and Key Metrics Changes - Fishing department sales increased by 10.3% in Q4, while camping sales rose by 5.2% [36] - Firearms unit sales increased in mid-single digits, despite a 1.7% decline in the hunting and shooting sports department [38] - E-commerce sales comped positively, up double digits in Q4, contributing to over 17% of total business [16][95] Market Data and Key Metrics Changes - Adjusted NICS data was down 4.5%, but the company outperformed this metric, suggesting market share gains in firearms [12][13] - The company noted a stable demand for hunting and shooting, with fishing showing a 10-year CAGR of about 5% [18] Company Strategy and Development Direction - The company is focused on a transformation strategy aimed at returning to same-store sales growth in 2025, improving gross margins, and paying down debt [17][51] - Four strategic initiatives for 2025 include focusing on core hunting and fishing products, leveraging local connections, becoming an authority in personal protection, and strengthening brand awareness [19][25][29][30] - The company aims to improve inventory efficiency by narrowing product assortments to key items that drive the majority of sales [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the turnaround strategy, noting improved sales trends and inventory management [12][33] - The company anticipates challenges in Q1 due to calendar shifts but expects stronger performance in Q2 and Q3 [60][61] - Management highlighted that consumer behavior has not significantly changed due to tariffs, and they are proactively managing inventory to mitigate potential impacts [78][100] Other Important Information - The company ended the year with total liquidity of $131.1 million and net debt of $98.7 million [48] - Capital expenditures for 2024 were approximately $14.6 million, primarily for store maintenance and technology improvements [48] Q&A Session Summary Question: Trends in sales for firearms and ammunition - Management noted positive trends in February and March, with a shift in holiday timing affecting sales [55][60] Question: Consumer behavior and trade-down effects - Management confirmed that while average unit prices in firearms are down, they are successfully maintaining average order values through add-on sales [72] Question: Impact of tariffs on guidance - Management indicated that tariffs have a minimal impact on overall costs, with proactive measures taken to mitigate potential increases [99][100] Question: Store openings and portfolio optimization - Management confirmed plans for one new store opening by the end of Q3 and discussed ongoing evaluations of store profitability [61][102] Question: Free cash flow conversion from EBITDA - Management expressed confidence in generating positive free cash flow through improved inventory management and operational efficiency [108] Question: E-commerce fulfillment and profitability - Over 75% of e-commerce demand is fulfilled at store locations, highlighting the effectiveness of the omnichannel strategy [116]