Sportsman’s Warehouse(SPWH) - 2026 Q3 - Quarterly Results

Financial Performance - Net sales for Q3 2025 were $331.3 million, a 2.2% increase from $324.3 million in Q3 2024, driven by strong performance in hunting, fishing, and personal protection categories[3] - Same store sales increased by 2.2% in Q3 2025 compared to Q3 2024, attributed to improved inventory management and digital marketing efforts[3] - Gross profit was $108.7 million, representing 32.8% of net sales, up from 31.8% in Q3 2024, due to stronger product margins and improved inventory management[3] - Adjusted net income for Q3 2025 was $3.0 million, compared to $1.4 million in Q3 2024, while diluted earnings per share improved to $0.00 from a loss of $(0.01)[5] - Net sales for the thirteen weeks ended November 1, 2025, were $331,323 thousand, a year-over-year increase of $7,062 thousand or 2.2% compared to $324,261 thousand for the same period in 2024[19] - Gross profit for the thirty-nine weeks ended November 1, 2025, was $278,311 thousand, representing a gross margin of 31.8%, up from 31.1% in the prior year, with an increase of $11,419 thousand year-over-year[21] - The company reported a net loss of $28,329 thousand for the thirty-nine weeks ended November 1, 2025, compared to a net loss of $24,336 thousand for the same period in 2024, reflecting an increase in loss of $3,993 thousand[21] - For the thirteen weeks ended November 1, 2025, the net income was $8 million, compared to a net loss of $364 million for the same period in 2024[32] - Adjusted EBITDA for the thirteen weeks ended November 1, 2025, was $18,621 million, an increase from $16,380 million in the same period of 2024, representing a growth of approximately 7.57%[32] - Overall, the adjusted EBITDA for the thirty-nine weeks ended November 1, 2025, was $17,901 million, compared to $15,052 million in 2024, reflecting an increase of approximately 18.9%[32] Expenses and Costs - SG&A expenses rose to $104.5 million, or 31.5% of net sales, compared to $100.0 million, or 30.8% of net sales in Q3 2024, reflecting reinvestment in customer-facing areas[5] - Operating expenses for the thirteen weeks ended November 1, 2025, were $104,452 thousand, which is 31.5% of net sales, compared to $99,973 thousand or 30.8% of net sales in the prior year[19] - The company incurred interest expense of $10,718 thousand for the thirty-nine weeks ended November 1, 2025, compared to $9,408 thousand in the same period of the previous year[21] - Interest expense for the thirteen weeks ended November 1, 2025, was $4,053 million, up from $3,317 million in the prior year, indicating an increase of about 22.2%[32] - Depreciation and amortization for the thirty-nine weeks ended November 1, 2025, totaled $29,401 million, slightly down from $30,536 million in 2024[32] - Stock-based compensation expense for the thirty-nine weeks ended November 1, 2025, was $2,400 million, a decrease from $3,438 million in the same period of 2024, reflecting a reduction of approximately 30.2%[32] - Legal accrual for the thirteen weeks ended November 1, 2025, was $3,000 million, compared to $1,750 million in the same period of 2024, showing an increase of 71.4%[32] - Director and officer transition costs for the thirty-nine weeks ended November 1, 2025, were $1,738 million, up from $709 million in the same period of 2024, indicating an increase of approximately 144.5%[32] - The company reported a cancelled contract expense of $911 million for the thirty-nine weeks ended November 2, 2024, which was not present in the current year[32] Inventory and Capital Expenditures - The company reduced total inventory by $14.2 million year-over-year and $19.5 million sequentially, focusing on core and seasonally relevant products[7] - Capital expenditures for 2025 are projected to be less than $25 million, primarily for strategic technological investments and store maintenance[7] Liquidity and Debt - The company ended Q3 2025 with net debt of $179.7 million and total liquidity of $111.9 million[11] - Cash and cash equivalents decreased to $2,246 thousand at the end of the period from $2,832 thousand at the beginning of the period[25] - The income tax benefit for the thirty-nine weeks ended November 1, 2025, was $(1,027) million, a significant improvement from $(7,364) million in 2024[32] Store Openings - The company opened a new store in Surprise, Arizona, marking its 11th store in the state and its first personal protection-focused concept[2] Assets - The company had total assets of $913,867 thousand as of November 1, 2025, an increase from $852,102 thousand as of February 1, 2025[23]