Sportsman's Warehouse Holdings, Inc. (NASDAQ:SPWH) Q4 2023 Results Conference Call April 3, 2024 5:00 PM ET Company Participants Riley Timmer - VP, IR Paul Stone - CEO Jeff White - CFO Conference Call Participants Mark Smith - Lake Street Capital Ryan Sigdahl - Craig-Hallum Capital Group Justin Kleber - Baird Anna Glaessgen - B. Riley Securities Mark Herrmann - R5 Capital Operator Greetings, and welcome to the Sportsman's Warehouse Fourth Quarter and Full Year 2023 Earnings Call. [Operator Instructions]. As ...

Exhibit 99.1 Mr. Stone continued, "Our initial efforts in 2024 have been focused on resetting the organization to provide our passionate customers a positive in-store experience. This fundamental strategy includes great merchandising, exceptional service, and investing in the necessary tools, people and processes to regain our edge as the local outdoor retailer of choice. Our team is energized around these key initiatives and the direction we are headed. We are confident that centering our efforts on provid ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 28, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from_______to_______ Commission File Number: 001-36401 SPORTSMAN'S WAREHOUSE HOLDINGS, INC. (Exact name of registrant as specified in its charter) Delaware 39-19 ...

Financial Data and Key Metrics Changes - Net sales for Q3 2023 were $340.6 million, a decline of 5.3% compared to $359.7 million in Q3 2022 [47] - Same store sales decreased by 11.4% compared to Q3 2022, with hunting department sales down 10.6% and firearms down 5.2% [2][16] - Net loss for Q3 was $1.3 million or negative $0.04 per diluted share, compared to net income of $12.9 million or $0.33 per diluted share in the prior-year period [26] - Adjusted EBITDA for Q3 was $16.2 million or 4.8% of net sales, down from $27.7 million or 7.7% of net sales in the prior-year period [51] Business Line Data and Key Metrics Changes - Total apparel sales were down 2.1% year-over-year, while footwear sales were up 1.8% [48] - Fishing department sales were down 5.8% on a comparable store basis, but total fishing sales were up 2.7% compared to the prior year [24] - SG&A expense as a percentage of net sales was 29.4%, compared to 28.4% in the same quarter last year, although operating expenses were down $2.2 million [25] Market Data and Key Metrics Changes - The macroeconomic environment continues to pressure consumer discretionary spending, impacting overall sales [16][29] - The company anticipates same store sales in Q4 to be down between 11% to 6% [30] Company Strategy and Development Direction - The company will not open any new stores during fiscal 2024, focusing instead on paying down debt and improving inventory management [19][28] - The strategy includes aggressive markdowns to clear out non-go-forward inventory, particularly in apparel and footwear [41] - E-commerce performance outpaced overall business performance in Q3, indicating a focus on enhancing omni-channel capabilities [42] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the current macroeconomic environment but expressed confidence in the company's foundational strength and future growth potential [40][21] - The company aims to end 2023 with a healthier inventory position, targeting a reduction to below $375 million [27][89] Other Important Information - The company reduced total inventory and paid down approximately $20 million in debt during Q3 [18] - The company plans to provide a strategic update on its long-term growth plans during the year-end earnings call in March [21] Q&A Session Summary Question: Did ammo and firearms remain positive in November? - Management indicated that while there was a lift in October due to external events, demand returned to normal consumer behavior in November [58] Question: What drives the decision to restart store openings in 2025? - The focus is on improving the balance sheet and ensuring that new store openings meet productivity thresholds [34][35] Question: How does the current promotional environment compare to last year? - The current promotional environment is driven by the need to clear inventory and attract customers, with significant discounts planned [83] Question: What is the strategy for inventory management moving forward? - The company is aggressively discounting to clear out inventory, with a focus on achieving a healthy inventory position by year-end [80][86] Question: How is the company managing payroll expenses? - Payroll expenses were down 8.4%, with significant reductions achieved while maintaining customer service quality [104][93]

– Increased dropship partnerships – 70%+ ecom sourced thru stores & dropship Copyright © 2023 Sportsman's Warehouse. 9 Q4 2023: $(0.35) – $(0.25) Third Quarter 2023 Denominator: Diluted weighted average shares outstanding 37,393 38,681 For the Thirteen Weeks Ended October 28, 2023 October 29, 2022 Third Quarter 2023 SPORTSMAN'S WAREHOUSE HOLDINGS, INC. GAAP and Non-GAAP Measures (Unaudited) (in thousands) | --- | --- | --- | --- | --- | |-----------------------------------------------------|-------|-------- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 29, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from_______to_______ Commission File Number: 001-36401 SPORTSMAN'S WAREHOUSE HOLDINGS, INC. (Exact name of registrant as specified in its charter) Delaware 39-19756 ...

Financial Data and Key Metrics - Net sales for Q2 2023 were $309.5 million, down nearly 12% compared to $351 million in Q2 2022 [12][17] - Same-store sales decreased by 16.1% in Q2 2023 compared to Q2 2022 [17] - Gross margin was 32.6%, down 90 basis points from 33.5% in Q2 2022 [12][21] - Adjusted EBITDA was 4.2% of net sales, down from 8.7% in the prior year [5][24] - Net loss for Q2 2023 was $3.3 million, compared to net income of $14.6 million in Q2 2022 [23] Business Line Performance - Hunting department same-store sales were down 17.5%, with ammunition sales down 30% and firearm sales down 10.9% [18][19] - Fishing department same-store sales were down 11.1%, with soft trends continuing from Q1 but showing month-over-month improvement [20] - Apparel, camping, and footwear departments were down 20.7%, 19.4%, and 13.8% respectively on a comparable basis [21] - E-commerce continued to outperform store performance, showing a bright spot in the omnichannel business [6] Market and Regional Data - The macroeconomic environment has reduced discretionary spending, impacting sales across all departments [13][29] - The company is focusing on regional assortment and seasonal pads to better cater to local customer needs [74] Strategic Direction and Industry Competition - The company is prioritizing inventory reduction, cost-cutting, and debt repayment to improve financial health [14][27][30] - New store openings for 2024 will be significantly fewer due to real estate availability and capital allocation priorities [31][32] - The company is confident in its ability to regain market share in key categories like firearms, despite overall sales declines [19] Management Commentary on Operating Environment and Outlook - Management expressed disappointment with Q2 performance but remains confident in the team's ability to navigate challenges [7][12] - The company expects continued pressure on top-line sales and gross margins in the back half of 2023 due to increased promotional activities [33][34] - Management anticipates a healthier position in 2024, with gross margins returning to normal levels as consumer behavior stabilizes [40] Other Important Information - The company ended Q2 with $231 million outstanding on its line of credit and $2.9 million in cash, with $96 million available under its credit facility [27] - Share repurchases totaled $2.1 million in Q2, with $7.5 million remaining under the authorized program [28] - The company expects to realize up to $25 million in annual savings from cost-cutting initiatives, primarily in labor and discretionary spending [30][63] Q&A Session Summary Question: Promotional Strategy for Q3 - Promotions will focus on apparel and footwear, with normal cadence in other categories like hunting and camping [38][39] Question: Margin Recovery and Long-Term Targets - Management views current margin pressures as short-term and expects a return to normal margins in 2024 [40] Question: Inventory and Margin Impact - Promotional activities in H2 2023 are expected to clear excess inventory, with margins improving in 2024 [44][45] Question: Store Growth Plans - The 2024 store growth slowdown is a short-term pause to focus on balance sheet health, with long-term expansion opportunities still intact [47] Question: Ammunition Sales and Promotions - Ammunition sales were down 30% due to difficult year-over-year comparisons, with promotional strategies balancing competitiveness and traffic generation [55] Question: Hunting and Outdoor Equipment Demand - Consumers are delaying upgrades to hunting equipment, impacting sales in this category [57] Question: Private Label vs. National Brand Promotions - Promotions will focus more on national brands, with private label brands managed to maintain sell-through and margin targets [58] Question: Store Traffic Trends - Store traffic did not improve as anticipated in Q2, remaining flat compared to Q1 [62] Question: Cost Savings Breakdown - The majority of the $25 million in annual savings will come from labor reductions, with additional savings from contract renegotiations and discretionary spending cuts [63] Question: CapEx Guidance - CapEx remains within the previously guided range of $48 million to $56 million, with adjustments for landlord payments [66] Question: Demographic and Regional Trends - The company's customer base tends to have lower average income, impacting discretionary spending more significantly compared to competitors [73]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) The company reported a net loss of $15.6 million in Q1 2023, a downturn from $2.0 million net income in Q1 2022, driven by decreased sales and increased inventory [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets rose to $981.7 million by April 29, 2023, driven by inventory growth, while liabilities increased and equity decreased Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | April 29, 2023 | January 28, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$981,697** | **$858,960** | | Merchandise inventories | $469,489 | $399,128 | | **Total Liabilities** | **$705,114** | **$565,847** | | Revolving line of credit | $150,250 | $87,503 | | **Total Stockholders' Equity** | **$276,583** | **$293,113** | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2023 saw a net loss of $15.6 million ($0.42 per share) due to decreased net sales and lower gross profit margins Q1 2023 vs Q1 2022 Statement of Operations (in thousands, except per share data) | Metric | Q1 2023 (13 weeks ended Apr 29) | Q1 2022 (13 weeks ended Apr 30) | | :--- | :--- | :--- | | Net sales | $267,529 | $309,505 | | Gross profit | $80,044 | $99,091 | | (Loss) income from operations | $(18,959) | $3,006 | | Net (loss) income | $(15,639) | $1,998 | | Diluted (loss) earnings per share | $(0.42) | $0.05 | [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity declined to $276.6 million by April 29, 2023, primarily due to a net loss and share repurchases - The primary drivers for the decrease in stockholders' equity during the quarter were the net loss of **$15.6 million** and payments for treasury stock repurchases (**$0.7 million**) and withholdings on restricted stock units (**$1.4 million**)[22](index=22&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash outflow increased to $37.0 million in Q1 2023, driven by inventory build-up, funded by $60.4 million from financing activities Cash Flow Summary (in thousands) | Activity | Q1 2023 (13 weeks ended Apr 29) | Q1 2022 (13 weeks ended Apr 30) | | :--- | :--- | :--- | | Net cash used in operating activities | $(36,985) | $(16,843) | | Net cash used in investing activities | $(22,757) | $(12,001) | | Net cash provided by financing activities | $60,393 | $29,531 | - The increase in cash used in operations was largely driven by a **$70.4 million investment in merchandise inventories**, compared to a $49.9 million increase in the same period last year[27](index=27&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, revenue disaggregation, lease liabilities, the $350 million revolving credit facility, and share repurchase program - As of April 29, 2023, the company operated **136 stores** in 31 states and an e-commerce platform, all aggregated into a single reportable segment[29](index=29&type=chunk) Revenue by Department (% of Net Sales) | Department | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Hunting and Shooting | 63.2% | 60.3% | | Fishing | 9.1% | 10.4% | | Camping | 8.9% | 10.8% | | Apparel | 7.0% | 6.9% | | Footwear | 6.7% | 6.3% | | Optics, Electronics, etc. | 5.1% | 5.3% | - The company settled a lease termination lawsuit with TMS McCarthy for a one-time payment of **$2.1 million** during the quarter[80](index=80&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q1 2023 net sales decline of 13.6% to reduced consumer demand and lower gross margins, while planning new stores and expense reductions - Net sales decreased by **13.6% to $267.5 million**, and same-store sales decreased by **17.8%** in Q1 2023 compared to Q1 2022[111](index=111&type=chunk) - The decline in sales was attributed to lower demand from extended winter conditions in the Western U.S., consumer inflationary pressures, and recessionary concerns[111](index=111&type=chunk) - Gross profit margin decreased to **29.9%** from 32.0% in the prior year, driven by a reduction in sales of higher-margin Camping and Fishing products and lower margins on ammunition[114](index=114&type=chunk) - The company plans to open **15 new stores** in fiscal year 2023 and is developing a plan to reduce expenses in response to adverse macroeconomic conditions[96](index=96&type=chunk)[103](index=103&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Q1 2023 net sales decreased by $42.0 million due to a 17.8% same-store sales drop, leading to a pre-tax loss of $21.0 million Departmental Net Sales Change (Q1 2023 vs Q1 2022) | Department | Change (in millions) | | :--- | :--- | | Hunting and Shooting | $(17.7) | | Camping | $(9.6) | | Fishing | $(7.6) | | Optics, Electronics, etc. | $(2.7) | | Apparel | $(2.6) | | Footwear | $(1.7) | - Within the Hunting and Shooting department, ammunition sales decreased by **$16.9 million (27.1%)**, while firearm sales decreased by a smaller **$1.6 million (1.9%)**[112](index=112&type=chunk) - SG&A expenses increased by **$2.9 million**, primarily due to higher rent (**$2.4M**), depreciation (**$1.4M**), pre-opening expenses (**$1.3M**) for new stores, and executive transition costs (**$1.1M**)[115](index=115&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is primarily from a $350 million revolving credit facility, with $150.5 million available, funding capital expenditures and inventory growth - Primary sources of cash are borrowings under a **$350.0 million** senior secured revolving credit facility and operating cash flows[125](index=125&type=chunk) - As of April 29, 2023, **$162.6 million** was outstanding under the revolving credit facility, with **$150.5 million** available for borrowing[130](index=130&type=chunk)[136](index=136&type=chunk) - Fiscal year 2023 capital expenditures are expected to be between **$48 million and $56 million**, primarily for opening **15 new stores** and refurbishing existing ones[129](index=129&type=chunk) - The share repurchase program was extended through March 31, 2024, with **$9.6 million** remaining available for repurchases as of April 29, 2023[131](index=131&type=chunk)[132](index=132&type=chunk) [Non-GAAP Financial Measures](index=29&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted EBITDA for Q1 2023 was negative **$5.6 million**, a significant decline from **$12.9 million** in Q1 2022, with a margin of **(2.1%)** Reconciliation of Net (Loss) Income to Adjusted EBITDA (in thousands) | Line Item | Q1 2023 (13 weeks ended Apr 29) | Q1 2022 (13 weeks ended Apr 30) | | :--- | :--- | :--- | | **Net (loss) income** | **$(15,639)** | **$1,998** | | Interest expense | $2,047 | $567 | | Income tax (benefit) expense | $(5,367) | $441 | | Depreciation and amortization | $8,782 | $7,411 | | Stock-based compensation expense | $1,250 | $1,358 | | Pre-opening expenses | $2,256 | $951 | | Director and officer transition costs | $1,113 | $222 | | **Adjusted EBITDA** | **$(5,558)** | **$12,948** | | **Adjusted EBITDA margin** | **(2.1)%** | **4.2%** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risk is interest rate exposure on the floating-rate credit facility; a 100 basis point increase would raise annual interest expense by $1.7 million - The principal market risk is from interest rate changes on the floating-rate revolving credit facility[153](index=153&type=chunk) - A hypothetical **100 basis point** increase in interest rates would increase the company's annual interest expense by **$1.7 million**[153](index=153&type=chunk) [Item 4. Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of April 29, 2023, with no material changes to internal controls - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report (April 29, 2023)[156](index=156&type=chunk) - No material changes to the internal control over financial reporting were identified during the first quarter of fiscal 2023[158](index=158&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal matters, including a $2.1 million settlement for a lease termination lawsuit - This section refers to Note 11, which discloses the settlement of the TMS McCarthy lawsuit regarding a lease termination. The company made a one-time payment of **$2,087 thousand** to settle the litigation[80](index=80&type=chunk)[161](index=161&type=chunk) [Item 1A. Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) No material changes in risk factors were reported from those disclosed in the Fiscal 2022 Form 10-K - There have been no material changes in risk factors from those set forth in the Fiscal 2022 Form 10-K[162](index=162&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered equity sales occurred; 97,500 shares were repurchased for $0.7 million, with $9.6 million remaining in the program - The Board of Directors extended the term of the **$75.0 million** share repurchase program through March 31, 2024[165](index=165&type=chunk) Share Repurchases in Q1 2023 | Period | Total of Shares Purchased | Average Price Paid per Share | Maximum Dollar Value Remaining for Purchase | | :--- | :--- | :--- | :--- | | March 31, 2023 to April 29, 2023 | 97,500 | $7.13 | $9,557 thousand | [Item 6. Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including a retention agreement, compensation policy, and SOX certifications - Exhibits filed include a Retention Agreement dated April 27, 2023, the Directors' Compensation Policy, and Sarbanes-Oxley Act certifications[171](index=171&type=chunk)

Financial Data and Key Metrics Changes - In Q1 2023, net sales were $267.5 million, down from $309.5 million in Q1 2022, primarily due to adverse weather and inflationary pressures [18][44] - Selling, general and administrative expenses increased to $99 million, up from $96.1 million in Q1 2022, with SG&A as a percentage of net sales rising to 37% from 31% [19] - Gross margin for the quarter was 29.9%, a decrease of 210 basis points year-over-year, attributed to a reduction in sales mix in higher-margin categories [43][84] - The company reported a loss of $0.39 per share for the quarter, impacted by reduced sales and increased expenses [44] Business Line Data and Key Metrics Changes - The hunting department outperformed other categories, driven by strong firearm sales, while camping and fishing categories saw reduced demand due to weather conditions [14][15] - The company opened five new stores in Q1 and plans to open 15 new stores in total for 2023, indicating a commitment to expanding its footprint despite current challenges [16][41] Market Data and Key Metrics Changes - Same-store sales decreased by 17.8% compared to Q1 2022, reflecting the impact of weather and inflation on consumer behavior [43] - The company anticipates second quarter net sales to be between $310 million and $340 million, with same-store sales expected to decline by 9% to 17% [21] Company Strategy and Development Direction - The company is focused on growing its store footprint, enhancing omnichannel capabilities, and leveraging customer databases to drive sales [6][10] - Management emphasizes the importance of maintaining financial discipline and achieving specific financial hurdles for new store openings [41][60] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of weather-related challenges and macroeconomic pressures on sales, particularly in spring-related categories [14][39] - The company is closely managing inventory and merchandising efforts to ensure seasonal relevance and healthy in-stock levels [39] - Management expressed confidence in the competitive position within the hunting and shooting sports categories, despite current market challenges [36] Other Important Information - The company ended Q1 with $150.3 million available on its line of credit, indicating strong liquidity [45] - A company-wide cost reduction effort is being implemented to align expenses with current sales trends [46] Q&A Session Summary Question: Did the firearms business comp positive in Q1? - The firearms business did not comp positive but outperformed the rest of the company [52] Question: What does the guidance imply regarding demand recovery? - The guidance reflects current trends, with some areas showing signs of recovery but not at expected rates [50] Question: Can you elaborate on the gross margin decline? - The decline was primarily due to lower ammunition margins and a shift in sales mix away from higher-margin categories [30][72] Question: How is the inventory position? - The company is comfortable with its inventory position and does not anticipate needing to conduct fire sales [58] Question: What is the outlook for store growth? - The company is focused on finding suitable locations that meet financial metrics and will not open stores just to meet growth targets [79][80]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 28, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 001-36401 SPORTSMAN'S WAREHOUSE HOLDINGS, INC. (Exact name of registrant as specified in its charter) Delaware 39-1975614 (State or other ...