Sportsman's Warehouse Holdings, Inc.

What they do

Sportsman's Warehouse operates 147 retail stores in 32 states totaling approximately 5.5 million gross square feet, plus an e-commerce platform at sportsmans.com. The company describes its stores and e-commerce platform as aggregated into one operating and reportable segment. Stores range from 7,500 to 75,000 gross square feet, averaging approximately 37,000 gross square feet, and are staffed by employees the company calls "outfitters."

Revenue drivers

• Hunting and Shooting Sports — Includes firearms and ammunition and drove same store sales in the latest quarter, rising 6.7% in Q2 fiscal 2026. Management cited nearly 7% growth in this department during the quarter, with some event-driven demand. The company flags this department, along with Optics, Electronics and Accessories, as most exposed to tariff-driven inventory cost increases.
• Optics, Electronics, Accessories and Other — Same store sales in this department increased 1.0% in Q2 fiscal 2026 versus the prior-year quarter. The 10-K identifies this department, together with Hunting and Shooting Sports, as one where tariff changes would materially increase inventory costs.
• Fishing — Sales in the Fishing department were up nearly 1% for the first six months of fiscal 2026, but management attributed a decline in other categories in Q2 to drought conditions in the western U.S. pressuring the fishing department.
• E-commerce and in-store firearm purchase — The company operates an e-commerce platform and offers a large assortment of firearms online for in-store purchase and buy-online-pickup-in-store. E-commerce net sales are included in the same store sales calculation.

Recent performance

For the thirteen weeks ended August 1, 2026, net sales increased 0.6% to $295.6 million from $293.9 million in the prior-year quarter, with same store sales flat. Gross profit was $96.0 million, or 32.5% of net sales, versus $93.9 million, or 32.0%, a gain attributed to lower freight from disciplined inventory management and a one-time tariff benefit, partly offset by category mix shift. Net loss was $(4.4) million compared to $(7.1) million a year earlier, and Adjusted EBITDA was $8.7 million versus $8.3 million. For the twenty-six weeks ended August 1, 2026, net sales were $551.7 million, up 1.6%, with same store sales up 1.0%.

Strategy

Management said teams moved to improve value proposition, strengthen in-stocks, sharpen assortment and localization, and improve store and digital experience. The company reduced year-over-year inventory by $44.5 million and year-over-year debt by $26 million as of the second quarter of fiscal 2026. It does not plan to open new stores in fiscal year 2026, prioritizing capital allocation for critical technology investments and debt repayment. After the 2026 holiday season, it anticipates closing approximately five underperforming stores and has already recognized $17.8 million of impairment losses on ten underperforming locations as of January 31, 2026. Management reaffirmed full-year 2026 guidance in the September 1, 2026 release.

Risks

• Tariff and trade policy exposure — The company states that implementation or continuation of increased tariff rates would materially increase inventory costs, especially in Hunting and Shooting Sports and Optics, Electronics, Accessories and Other.
• Firearms regulation — The 10-K cites laws in Colorado, Washington, Florida and Oregon raising purchase ages, imposing waiting periods, or banning magazines over ten rounds, any of which could reduce demand for products the company sells.
• Store-level underperformance and closures — Ten underperforming stores generated $17.8 million of impairment losses as of January 31, 2026, with approximately five closures expected within the next year, and further closures could result in additional impairment charges.
• Weak discretionary consumer spending — Management attributed Q2 declines in categories outside Hunting and Shooting Sports to continued pressure on the U.S. consumer, and said it remains measured in its outlook for fiscal 2026.

Outlook

Management reaffirmed full-year 2026 guidance in the September 1, 2026 earnings release. CEO Paul Stone said the company enters the fall and holiday seasons with its healthiest inventory position in years, more relevant merchandise and a stronger balance sheet, while stating significant work remains. The company remains measured in its outlook for the year given macroeconomic uncertainties including tariffs, inflation, elevated interest rates and recession risk. No new stores are planned in fiscal year 2026, with capital directed to technology investments and debt repayment.