Sportsman's Warehouse NASDAQ: SPWH reported higher first-quarter sales and reiterated its fiscal 2026 outlook, as management said strength in hunting, shooting sports and fishing offset continued pressure in camping and soft goods.
On the company’s first-quarter 2026 earnings call, Chief Executive Officer Paul Stone said same-store sales rose just over 2% from a year earlier, building on 2% growth in the prior-year period. He said the results came despite “ongoing consumer macroeconomic pressure and higher fuel prices.”
Net sales for the quarter were $256.1 million, up 2.8% from $249.1 million in the same period last year, according to Chief Financial Officer Jennifer Fall Jung. Same-store sales increased 2.1%.
Hunting, Shooting Sports and Fishing Lead Sales Gains
Stone said first-quarter sales in the hunting and shooting sports department increased more than 7% from last year, helped by firearms and ammunition demand as well as the company’s Spring Range Days event. Fall Jung said comparable sales in hunting and shooting sports grew 6.3%, led by firearms, ammunition and less-lethal personal protection.
“While event-driven demand further supported sales of firearms and ammunition during the quarter, we will continue to strategically build on our authority as a leader in both shooting sports and personal protection,” Stone said.
In response to an analyst question about the strength in hunting and shooting sports, Fall Jung said the company saw strength across the quarter, with March and April outperforming the prior year on a combined basis. She said May showed “a little bit more of the stabilization” after event-driven demand.
Fishing also remained a growth category. Stone said fishing department sales increased nearly 6% in the quarter and were up about 17% on a two-year comparable basis. He noted that a softer-than-expected ice fishing season weighed on the category but said the company remained confident in its assortment heading into late spring and summer.
E-Commerce Growth Supports Omnichannel Strategy
Sportsman's Warehouse said e-commerce-driven sales increased more than 6% in the quarter. Stone said the company’s omnichannel model benefits from the fact that firearms and, in certain states, ammunition require in-store pickup, which drives online customers into stores.
The company has been working to improve its online fishing experience. Stone said early results from website changes were encouraging and contributed to e-commerce sales growth. He also highlighted a new partnership with Field & Stream, which is focused on content with fishing and hunting influencers to increase brand exposure, showcase products and drive traffic to Sportsman's Warehouse.
During the question-and-answer portion of the call, Stone said the company had under-invested in e-commerce in the past and is now focusing on improving the shopping experience, including in fishing and fly fishing. He said management expects to have a better online solution-selling experience in place for the hunting season.
Stone also said the company is advancing a firearm solution-bundling strategy, with full-solution offerings now available online for top-selling products. He said the approach pairs firearms with products such as gun safes, hearing and eye protection, and service plans, particularly for first-time firearm buyers.
Margins Pressured by Product Mix
Gross margin for the quarter was 29.6%, compared with 30.4% in the same quarter last year. Fall Jung said the decline was primarily due to category mix, including a higher penetration of firearms and ammunition and lower sales in higher-margin categories.
In response to an analyst question, Fall Jung said the majority of the 80-basis-point gross margin decline was driven by mix, though there was “a little bit of pressure” in other categories as the company began taking markdowns earlier than it has historically.
Selling, general and administrative expenses were $93.9 million, or 36.7% of net sales, compared with $95.3 million, or 38.2% of net sales, in the first quarter of last year. Fall Jung attributed the decline to disciplined cost management, lower payroll expense and decreased depreciation.
The company reported a net loss of $21.8 million, or 56 cents per diluted share, compared with a net loss of $21.3 million, also 56 cents per diluted share, in the prior-year quarter. Adjusted net loss was $15.1 million, or 39 cents per diluted share, compared with an adjusted net loss of $15.6 million, or 41 cents per diluted share, a year earlier. Adjusted EBITDA was negative $8.1 million, improving from negative $9 million in the first quarter of 2025.
Inventory Reduction Remains a Priority
Total inventory at quarter-end was $387.1 million, down $25.1 million, or 6.1%, from a year earlier. Fall Jung said the decline was part of the company’s inventory efficiency strategy, including better alignment of receipt timing with seasonal demand.
Management said it expects average inventory to be lower throughout the year and continues to expect to end 2026 with less total inventory than in 2025.
Stone said the company had intentionally reduced inventory and assortment in camping and soft line departments last year to eliminate slow-moving and lower-return products that did not align with its core pursuits. He said new summer merchandise is now arriving in stores with a focus on recognized brands, quality and value.
Asked about camping, Stone said inventory is in “a good position,” though weather had been soft, cold and wet to start the summer compared with last year and historical trends. He said the company has shifted investment away from lower-performing camping subcategories and toward hunting, fishing, shooting and personal protection.
Company Reiterates Fiscal 2026 Guidance
Sportsman's Warehouse ended the quarter with net debt of $148.4 million and total liquidity of $116.7 million. Fall Jung said the company remains focused on working capital management, positive free cash flow and using excess cash to reduce debt.
The company reiterated its fiscal 2026 guidance, continuing to expect:
- Net sales ranging from down 1% to up 2% compared with last year;
- Adjusted EBITDA between $30 million and $36 million;
- Capital expenditures between $20 million and $25 million.
Fall Jung said the outlook reflects expected benefits from better gross margin performance, expense management and improved inventory discipline. Capital spending is expected to focus mainly on technology investments to improve store service and merchandising productivity, along with normal store maintenance.
Stone said the company remains focused on profitable growth, disciplined inventory management, positive free cash flow and debt reduction. He also said Sportsman's Warehouse is working with Epsilon to reinvent its loyalty program in an effort to improve customer retention, increase lifetime value and support a more disciplined promotional strategy.
About Sportsman's Warehouse NASDAQ: SPWH
Sportsman's Warehouse, Inc NASDAQ: SPWH operates as a specialty retailer of hunting, shooting, fishing, camping and related outdoor sports equipment in the United States. The company's brick-and-mortar footprint comprises over 100 retail locations across more than 20 states, complemented by an e-commerce platform that serves anglers and outdoorsmen nationwide. By focusing on core outdoor activities, Sportsman's Warehouse delivers a comprehensive shopping experience for enthusiasts of all skill levels.
The retailer's product assortment includes firearms and ammunition, archery gear, fishing tackle and boats, camping supplies, outdoor apparel and footwear, water sports equipment and pet supplies.
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