“From urban play spaces to bowling and darts, this shift toward “competitive socializing” marks a generational change in how sports are experienced and consumer,” the report said. It noted that running and cycling clubs are booming because they offer inclusive spaces and turn workouts into social rituals among the Gen Z cohorts.Moreover, secular trends also reflect changing consumer profiles. Young consumers are redefining outdoor engagement. Gen Z, with a 70 percent participation rate, is highly active, bu ...

Core Insights - The U.S. retail sector is facing significant challenges due to newly imposed tariffs, weaker consumer spending, and rising costs, leading to a wave of store closures [1][10] - Orvis, a well-known outdoor and lifestyle brand, plans to permanently close 36 locations in 2026 as part of a strategy to refocus on its core identity as a fly-fishing and hunting brand [2][3] Company-Specific Developments - Orvis will close 31 stores and five outlets, aiming to return to its roots and enhance its commitment to innovation and community [2][3] - The company has previously made significant cuts, including laying off 112 employees (8% of its workforce) in 2024 and an additional 50 employees (4% of its workforce) in June 2025 [5] - Orvis operates around 80 stores in the U.S. and has a network of over 550 independent dealers [4] Industry Trends - The retail industry is experiencing a concerning trend of mass closures, with announced store closures in 2025 up 67% compared to the previous year [9] - As of July 4, nearly 6,000 retail closures have been reported nationwide, significantly outpacing just over 4,000 new openings [10] - The National Retail Federation projects retail sales growth of 2.7% to 3.7% in 2025, a slowdown from 3.6% in 2024 [8]

Core Insights - Etsy is transitioning its stock listing from Nasdaq to the New York Stock Exchange, with the Nasdaq listing ceasing on October 10 and trading on the NYSE starting October 13 [2][3] - J.C. Penney launched a new collection by Ashley Graham, featuring sizes from 0X to 5X, aimed at enhancing customer confidence and celebrating curves [3][4] - Le Creuset introduced a limited 'Wicked: For Good' cookware collection, priced at $450 each, in collaboration with Universal Products & Experiences, ahead of a movie release [5][6] - Tractor Supply agreed to pay $1.35 million for violating California privacy laws and will implement remedial measures following an investigation [6][8] - REI's new strategy, outlined by CEO Mary Beth Laughton, focuses on an updated membership program, enhanced services, and a purpose-led culture to improve customer engagement [10][11][12] Company Developments - Etsy's move to the NYSE is seen as a significant step for the company, which began trading on Nasdaq in 2015 [2][3] - The Ashley Graham collection at J.C. Penney is part of the retailer's effort to redefine its brand and attract a new generation of customers [4] - Le Creuset's new collection aims to inspire personal expression through its unique designs [5][6] - Tractor Supply's privacy violation highlights the increasing scrutiny on retailers regarding customer data protection [6][8] - REI's strategy includes a commitment to having products that are well-stocked and competitively priced, reflecting a shift towards operational efficiency [12][13]

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]

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].

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]

Financial Data and Key Metrics Changes - Net sales for Q1 2025 were $249.1 million, a 2% increase from $244.2 million in the same period last year, marking a strong start to the year [15] - Gross margin for the quarter was 30.4%, up 20 basis points from 30.2% a year ago, driven by favorable mix and rate improvements in the Fishing business [16] - SG&A expenses were $95.3 million, or 38.2% of net sales, compared to 38.6% in the prior year, reflecting improved expense discipline [17] - Net loss for Q1 was $21.3 million, or negative $0.56 per diluted share, compared to a net loss of $18.1 million, or negative $0.48 per diluted share in the prior year [17] - Adjusted EBITDA for Q1 was negative $9 million, compared to negative $8.7 million in Q1 2024 [18] Business Line Data and Key Metrics Changes - Firearms unit sales increased nearly 7% year-over-year, significantly outpacing the adjusted NICS data, which declined by 5.4% [7] - Positive sales comps were achieved in most core categories, including firearms, clothing, footwear, and ammunition, which was up 3% [7] - Fishing sales were up 11%, validating the new merchandising strategy with a two-year comp stock growth of 12.3% [8] - E-commerce business posted a positive comp, up 8% over last year, driven by a new digital-first marketing strategy [9] Market Data and Key Metrics Changes - The company captured market share in firearms despite a decline in adjusted NICS, indicating strong performance relative to the industry [7] - The strategic shift to everyday low prices on core ammunition calibers drove a 12% increase in ammo unit sales during the quarter [9] Company Strategy and Development Direction - The company is focused on a turnaround plan to transform Sportsman's Warehouse for sustained profitability and growth, emphasizing inventory precision, local relevance, personal protection, and brand awareness [5][6] - The launch of the Safety Outpost on the website signals a commitment to personal protection, a major growth category [11] - The company aims to reduce total inventory by the end of the year while maintaining the right products in the right stores at the right time [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic plan despite ongoing macroeconomic challenges, highlighting improved comp trends and inventory execution [24] - The company anticipates generating positive free cash flow and using excess cash to reduce debt and strengthen the balance sheet [22][41] - Full year guidance for net sales is expected to range between down 1% to up 3.5% compared to 2024, with adjusted EBITDA projected between $33 million and $45 million [23] Other Important Information - Total inventory at the end of Q1 was $412.3 million, up from $391.6 million in the same period last year, reflecting a strategic decision to pull forward inventory ahead of rising tariffs [18] - The company reduced total active SKUs by approximately 20%, simplifying the assortment and improving inventory terms [20] Q&A Session Summary Question: Can you break down comp trends by month and extend that into May? - Management noted good trends in February, with a strong performance in April, and confirmed that May also showed positive comps [26][28] Question: Is the increase in sales due to foot traffic or inventory assortments? - Management indicated a mixture of better traffic trends, positive transaction trends, and higher basket sizes contributing to the increase [29] Question: Can you clarify the $20 million inventory pull forward? - Management confirmed the strategic decision to pull forward $20 million of inventory to address tariff uncertainties and ensure stock for key seasons [36] Question: Did sales mix negatively impact gross profit margin in Q1? - Management acknowledged that heavy penetration in firearms and ammo impacted gross profit margin but was aligned with their strategy [38] Question: What are the thoughts on debt repayment this year? - Management expressed confidence in generating positive free cash flow and applying excess cash to debt repayment [41] Question: What is the impact of tariffs on the P&L? - Management indicated that the pull forward in inventory would likely mitigate tariff impacts until at least the third quarter [49]

Financial Data and Key Metrics Changes - Net sales for Q1 2025 were $249.1 million, a 2% increase from $244.2 million in the same period last year, marking a strong start to the year [17] - Gross margin for the quarter was 30.4%, up 20 basis points from 30.2% a year ago, driven by favorable mix and rate improvements in the Fishing business [18] - SG&A expenses were $95.3 million, or 38.2% of net sales, compared to 38.6% in the prior year, reflecting continued focus on expense discipline [19] - Net loss for Q1 was $21.3 million, or negative $0.56 per diluted share, compared to a net loss of $18.1 million, or negative $0.48 per diluted share in the prior year [19] - Adjusted EBITDA for Q1 was negative $9 million, compared to negative $8.7 million in Q1 2024 [20] Business Line Data and Key Metrics Changes - Firearms unit sales increased nearly 7% year-over-year, significantly outpacing the adjusted NICS data, which declined by 5.4% [8] - Positive sales comps were achieved in most core categories, including firearms, clothing, footwear, and ammunition, which was up 3% [8] - Fishing sales were up 11%, validating the new merchandising strategy with a two-year comp stock growth of 12.3% [9] Market Data and Key Metrics Changes - E-commerce business posted a positive comp, up 8% over last year, outpacing the overall business [11] - The company experienced a 12% increase in ammo unit sales during the quarter, driven by strategic pricing and inventory management [11] Company Strategy and Development Direction - The company is focused on a turnaround plan to transform Sportsman's Warehouse for sustained profitability and growth, emphasizing inventory precision, local relevance, personal protection, and brand awareness [6][7] - A new omni-channel brand campaign is being launched to reestablish Sportsman's Warehouse as the preferred destination for outdoor gear [14] - The company aims to reduce total inventory by the end of the year while maintaining the right products in the right stores at the right time [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic plan despite ongoing consumer macroeconomic challenges, highlighting the unique competitive advantage of local expertise [15] - The company anticipates generating positive free cash flow and reducing debt throughout 2025 [23][24] - Full year guidance for net sales is expected to range between down 1% to up 3.5% compared to 2024, with adjusted EBITDA projected between $33 million and $45 million [24] Other Important Information - Total inventory at the end of Q1 was $412.3 million, up from $391.6 million in the same period last year, reflecting a strategic decision to pull forward inventory ahead of rising tariffs [20] - The company reduced total active SKUs by approximately 20%, simplifying the assortment and improving inventory terms [22] Q&A Session Summary Question: Can you break down comp trends by month and extend into May? - Management noted good trends in February, with a strong performance in April and positive comp for May [27][29] Question: Is the increase in sales due to foot traffic or inventory assortments? - Management indicated a mixture of better traffic trends and higher basket sizes due to improved inventory strategies [30] Question: Can you elaborate on the $20 million inventory pull forward? - The company confirmed the strategic decision to pull forward inventory to mitigate tariff impacts and ensure stock for key seasons [38] Question: Did sales mix negatively impact gross profit margin in Q1? - Management acknowledged that heavy penetration in firearms and ammo impacted gross profit margin [39] Question: What are the thoughts on debt repayment this year? - Management expressed confidence in generating positive free cash flow to apply towards debt repayment [43] Question: What is the expected impact of tariffs on the P&L? - Management indicated that the pull forward in inventory may mitigate tariff impacts until at least the third quarter [50] Question: What is driving the outperformance relative to the industry? - The company is significantly outperforming NICS on a unit basis, driven by strategic inventory management and customer value [53]

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, with a decline of 0.9% when adjusted for the 53rd week [34][35] - Q4 adjusted EBITDA increased to $14.6 million from $5.3 million in the previous year, representing a nearly 300% increase in profitability [43] - Gross margin improved to 30.4% from 26.8% in the prior year, a 360 basis point increase [39] - Net loss for Q4 was $8.7 million, unchanged from the previous year, but adjusted net income improved to $1.6 million from an adjusted net loss of $7.5 million [41][42] - Full year 2024 sales were approximately $1.2 billion, with adjusted EPS of negative 53 cents per diluted share [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 mid-single digits, despite a 1.7% decline in the hunting and shooting sports department [38] - E-commerce sales were up double digits in Q4, contributing to over 17% of overall business [16][101] Market Data and Key Metrics Changes - Adjusted NICS data showed a 4.5% decline, but the company outperformed this with mid-single digit growth in firearm unit sales [13] - The company noted a trade down to lower-priced firearms, impacting sales dollars but maintaining average order value [39][74] Company Strategy and Development Direction - The company is focused on a transformation strategy aimed at improving omnichannel retail fundamentals and inventory efficiency [7][10] - Plans for 2025 include returning to same-store sales growth, improving gross margins, and paying down debt [17][49] - Four strategic initiatives for 2025 include focusing on core hunting and fishing products, leveraging local connections, enhancing personal protection offerings, and strengthening brand awareness [20][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the turnaround strategy, noting steady improvement in sales trends and inventory management [12][33] - The company anticipates challenges in Q1 due to calendar shifts but expects significant opportunities in Q2 and Q3 [61][62] - Management highlighted the importance of being prepared for seasonal demands and improving inventory flow [66][67] Other Important Information - The company ended the year with liquidity of $131 million, an increase of $40 million compared to the previous year [12][48] - Capital expenditures for 2024 were approximately $14.6 million, primarily for store maintenance and technology investments [48] Q&A Session Summary Question: Trends in sales for February and March - Management noted positive sales trends in February, with a shift in holiday timing affecting March sales [56][62] Question: Trade down environment and market share - Management indicated that the trade down in firearms could present an opportunity for market share gains, as they focus on stocking the right products [72][74] Question: Impact of tariffs on consumer behavior - Management stated that there has been no significant change in consumer behavior due to tariffs, attributing any sales shifts to timing of advertising [81][82] Question: Free cash flow conversion from EBITDA - Management expressed confidence in generating positive free cash flow through improved inventory efficiency and sales growth [63][116] Question: Store openings and portfolio optimization - Management confirmed plans for one new store opening and mentioned ongoing evaluations of underperforming stores [110][112]