Sportsman’s Warehouse Reduces Inventory, Debt in Q2 Despite Challenges

Sportsman’s Warehouse Holdings, Inc., a leading retailer in hunting and shooting sports, has released its financial results for the second quarter of 2026. Despite a challenging consumer environment, the company managed to reduce its year-over-year inventory by $44.5 million and year-over-year debt by $26 million.

Paul Stone, President and CEO of Sportsman’s Warehouse, expressed satisfaction with the company’s performance, stating, “While our customers continue to be selective with discretionary spending, we are encouraged by the progress we have made in strengthening Sportsman’s Warehouse. Our teams have focused on improving our value proposition, enhancing in-stocks, and refining our assortment and localization, which helped drive nearly 7% growth in our Hunting and Shooting Sports department during the quarter.”

Stone further noted, “We enter the critical fall and holiday seasons with a healthier inventory position, more relevant merchandise, and a stronger balance sheet. While significant work remains, we are building momentum and remain confident in our plans for the second half of the year and our long-term opportunity to establish Sportsman’s Warehouse as the leading retailer that combines national scale with local relevance.”

Financial highlights for the second quarter include: - Net sales increased by 0.6% to $295.6 million, with same-store sales remaining flat. - Gross profit was $96.0 million, or 32.5% of net sales, up from 32.0% in the same period of 2025. - Selling, general, and administrative expenses were $97.1 million, or 32.9% of net sales, compared to 33.1% in the same period of 2025. - Net loss was $4.4 million, compared to a net loss of $7.1 million in the second quarter of 2025. - Adjusted EBITDA was $8.7 million, up from $8.3 million in the same period of 2025.

For the first half of the year, the company reported: - Net sales of $551.7 million, up 1.6% compared to the first six months of 2025. - Gross profit was $171.8 million, or 31.1% of net sales, down from 31.2% in the same period of 2025. - SG&A expenses decreased to $191.0 million, or 34.6% of net sales, compared to 35.4% in the first six months of 2025. - Net loss was $26.3 million, compared to $28.3 million in the first six months of 2025. - Adjusted EBITDA was $0.6 million.

Stone and Chief Financial Officer Jennifer Fall Jung highlighted key balance sheet and capital allocation highlights: - Net debt stood at $167.0 million, down from last year. - Total inventory decreased by $44.5 million, or 10%, year over year. - Total liquidity was $105.0 million, with $103.0 million available on the term loan and revolving credit facilities, and $2.0 million in cash and cash equivalents.

Looking ahead, Sportsman’s Warehouse reaffirmed its guidance for fiscal year 2026, with same-store sales expected to be between down 1.0% and up 2.0%, and adjusted EBITDA in the range of $30 million to $36 million. The company also expects capital expenditures to be between $20 million and $25 million, primarily for technology investments and general store maintenance.

Stone concluded, “We made meaningful progress in the second quarter, with improved gross margins and disciplined management of expenses and inventory. As we move into the second half of the year, we are well-positioned to leverage our improved financial foundation and continue driving growth.”