Sportsman's Warehouse Reports Q2 Earnings with Improved Balance Sheet and Inventory Reduction
In the second quarter of fiscal year 2026, Sportsman’s Warehouse (SPWH) reported net sales of $295.6 million, a slight increase from the prior-year period but flat same-store sales due to elevated fuel prices and reduced discretionary spending. The company improved its gross margin by 50 basis points to 32.5%, driven by lower freight costs and inventory management efforts. Despite these improvements, SPWH posted a net loss of $4.4 million or $0.11 per diluted share, compared with a prior-year loss of $7.1 million. Key growth areas included hunting and shooting sports sales, which rose 6.7% year over year due to strong demand for firearms (up 8%) and ammunition (up nearly 11%). E-commerce revenue also grew by almost 3%, outperforming total company sales again. However, fishing sales declined approximately 2% in Western states affected by drought conditions. The company reduced inventory by $44.5 million year over year to $399 million and lowered net debt by $26 million to $169 million while extending its credit facilities through June 2031 for long-term flexibility.
Topics: ebitda financial_performance inventory_management sales_growth