Sportsman’s Warehouse(SPWH) - 2025 Q4 - Annual Results

Financial Performance - Q4 same store sales decreased by 0.5% on a comparable 13-week basis, an improvement from a decline of 12.8% in Q4 last year [2] - Q4 adjusted EBITDA was $14.6 million, significantly up from $5.3 million in Q4 last year [4] - Net sales for Q4 were $340.4 million, down 8.1% compared to $370.4 million in Q4 FY2023, primarily due to one less week of operations [4] - Gross profit for Q4 was $103.6 million, representing 30.4% of net sales, an increase from 26.8% in Q4 FY2023 [6] - For FY2024, net sales were $1,197.6 million, a decrease of 7.0% compared to $1,288.0 million in FY2023 [6] - Net sales for the fiscal year ended February 1, 2025, were $1,197,633, a decrease of $90,354 compared to $1,287,987 for the fiscal year ended February 3, 2024 [24] - Adjusted EBITDA for the fiscal year ended February 1, 2025, increased to $29.618 million, up from $24.575 million in the prior year, reflecting a year-over-year growth of approximately 20.8% [34] Expenses and Profitability - SG&A expenses decreased to $100.0 million, or 29.4% of net sales, down from $107.3 million or 29.0% of net sales in Q4 FY2023 [6] - Operating expenses decreased to $388,705, representing 32.5% of net sales, down from $408,750 or 31.7% of net sales in the prior year [24] - The company reported a net loss of $33,059 for the fiscal year ended February 1, 2025, compared to a net loss of $28,997 for the previous year [24] - For the fiscal quarter ended February 1, 2025, the net loss was $8.723 million, compared to a net loss of $8.739 million for the same quarter in 2024 [31] - Adjusted net loss income for the fiscal year ended February 1, 2025, was $20.208 million, an improvement from a loss of $24.064 million in the previous fiscal year [31] Cash and Liquidity - As of February 1, 2025, the company ended the year with net debt of $95.9 million and total liquidity of $131.1 million [14] - Cash and cash equivalents at the end of the period were $2,832, a decrease from $3,141 at the end of the previous fiscal year [26] - Total assets decreased to $852,102 as of February 1, 2025, down from $886,205 as of February 3, 2024 [26] Inventory and Payables - The company reported a decrease in merchandise inventories to $341,958 from $354,710 [26] - The company experienced a year-over-year increase in accounts payable, rising to $64,041 from $56,122 [26] Future Outlook - The company expects FY2025 net sales to range from a decrease of 1.0% to an increase of 3.5% [9] - Adjusted EBITDA for FY2025 is projected to be between $33 million and $45 million [9] - The company plans to open one new store in Surprise, Arizona during FY2025 [9] Interest and Legal Expenses - Interest expense for the fiscal year was $12,278, consistent with the previous year's expense of $12,869 [24] - Legal expenses for the fiscal year ended February 1, 2025, were $1.750 million, compared to $687 thousand in the previous year [34] Shareholder Information - The diluted weighted average shares outstanding increased to 38,045 thousand for the fiscal quarter ended February 1, 2025, compared to 37,457 thousand in the same quarter of 2024 [31] - The impact of adjustments to the numerator and denominator resulted in an adjusted diluted loss earnings per share of $0.04 for the fiscal quarter ended February 1, 2025, compared to a loss of $0.20 in the prior year [31] Executive Transition Costs - Executive transition costs amounted to $1.081 million for the fiscal year ended February 1, 2025, down from $4.763 million in the previous year [31] - The company did not incur any new store pre-opening expenses for the fiscal year ended February 1, 2025, while it incurred $5.8 million in the previous fiscal year [34] Non-Cash Adjustments - A non-cash valuation allowance of $10.1 million was created during fiscal year 2024 related to Deferred Tax Assets [35]