Sportsman’s Warehouse Holdings, Inc. Announces First Quarter 2025 Financial Results
2% increase to Q1 same store sales, versus -13.5% in Q1 last year
Significantly outperformed the Q1 adjusted NICS data
Reaffirms full-year 2025 Guidance
“In the first quarter we delivered our first positive same store sales comp in nearly four years, an indication that our transformation strategy continues to gain traction,” said
For the thirteen weeks ended
- Net sales increased 2.0% to
$249.1 million , compared to$244.2 million in the first quarter of fiscal year 2024. The net sales increase was primarily due to increased sales in our Fishing and Hunting andShooting Sports departments as we continue the emphasis on core in-stocks and being locally and seasonally on-time with our merchandise. - Gross profit was
$75.6 million , or 30.4% of net sales, compared to$73.8 million , or 30.2% of net sales, in the first quarter of fiscal year 2024. The increase as a percentage of net sales was primarily driven by improved productivity of inventory and improved product margin rate in our fishing category. - Selling, general, and administrative (SG&A) expenses were
$95.3 million , or 38.2% of net sales, compared to$94.4 million , or 38.6% of net sales, in the first quarter of fiscal year 2024. The improvement in SG&A as a percentage of net sales was due to the continued focus on expense management and leverage gained from higher sales. - Net loss was
$(21.3) million , compared to a net loss of$(18.1) million in the first quarter of fiscal year 2024. Adjusted net loss was$(15.6) million compared to an adjusted net loss of$(17.8) million in the first quarter of fiscal year 2024 (see “GAAP and Non-GAAP Financial Measures”). - Adjusted EBITDA was
$(9.0) million , compared to$(8.7) million in the first quarter of fiscal year 2024 (see “GAAP and Non-GAAP Financial Measures”). - Diluted loss per share was
$(0.56) compared to a diluted loss per share of$(0.48) in the corresponding prior-year period. Adjusted diluted loss per share was$(0.41) compared to adjusted diluted loss per share of$(0.47) in the first quarter of fiscal year 2024 (see “GAAP and Non-GAAP Financial Measures”).
Balance sheet and capital allocation highlights as of
- The Company ended the first quarter with net debt of
$162.4 million , comprised of$3.6 million of cash on hand,$24.1 million of net borrowings outstanding under the Company’s term loan facility and$141.9 million of net borrowings outstanding under the Company’s revolving credit facility. Total inventory at the end of the first quarter was$412.3 million , reflecting in-part our pull forward of certain inventory purchases during the first quarter of fiscal year 2025 in anticipation of increased tariffs. - Total liquidity was
$122.1 million as of the end of the first quarter of fiscal year 2025, comprised of$118.5 million of availability on the term loan and revolving credit facilities and$3.6 million of cash and cash equivalents.
Fiscal Year 2025 Outlook:
The Company is reaffirming its guidance for fiscal year 2025 and expects net sales to be in the range of down 1.0% to positive 3.5% and adjusted EBITDA to be in the range of
The Company has not reconciled expected adjusted EBITDA for fiscal year 2025 to GAAP net income because the Company does not provide guidance for net (loss) income and is not able to provide a reconciliation to net (loss) income without unreasonable effort. The Company is not able to estimate net (loss) income on a forward-looking basis without unreasonable efforts due to the variability and complexity with respect to the charges excluded from Adjusted EBITDA.
Conference Call Information:
A conference call to discuss first quarter 2025 financial results is scheduled for
Non-GAAP Financial Measures
This press release includes the following financial measures defined as non-GAAP financial measures by the
The Company believes that these non-GAAP financial measures not only provide its management with comparable financial data for internal financial analysis but also provide meaningful supplemental information to investors and are frequently used by analysts, investors and other interested parties in the evaluation of companies in the Company’s industry. Specifically, these non-GAAP financial measures allow investors to better understand the performance of the Company’s business and facilitate a more meaningful comparison of its diluted (loss) earnings per share and actual results on a period-over-period basis. The Company has provided this information as a means to evaluate the results of its ongoing operations. Management uses this information as additional measurement tools for purposes of business decision-making, including evaluating store performance, developing budgets and managing expenditures. Other companies in the Company’s industry may calculate these items differently than the Company does. Each of these measures is not a measure of performance under GAAP and should not be considered as a substitute for the most directly comparable financial measures prepared in accordance with GAAP. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. The Company’s management believes that these non-GAAP financial measures allow investors to evaluate the Company’s operating performance and compare its results of operations from period to period on a consistent basis by excluding items that management does not believe are indicative of the Company’s core operating performance. The presentation of such measures, which may include adjustments to exclude unusual or non-recurring items, should not be construed as an inference that the Company’s future results, cash flows or leverage will be unaffected by other unusual or non-recurring items.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements in this release include, but are not limited to, statements regarding our plan and ability to execute and position ourselves for continued growth and financial improvement; our ability to react to macroeconomic conditions and the evolving tariff landscape; our ability to generate positive free cash flow for the year, drive improved inventory productivity and pay down our debt; our guidance for net sales, Adjusted EBITDA and capital expenditures for fiscal year 2025; and our expectation to open one new store in fiscal year 2025. Investors can identify these statements by the fact that they use words such as “aim,” “anticipate,” “assume,” “believe,” “can have,” “could,” “due,” “estimate,” “expect,” “goal,” “intend,” “likely,” “may,” “objective,” “plan,” “positioned,” “potential,” “predict,” “should,” “target,” “will,” “would” and similar terms and phrases. These forward-looking statements are based on current expectations, estimates, forecasts and projections about our business and the industry in which we operate and our management’s beliefs and assumptions. We derive many of our forward-looking statements from our own operating budgets and forecasts, which are based upon many detailed assumptions. While we believe that our assumptions are reasonable, we caution that predicting the impact of known factors is very difficult, and we cannot anticipate all factors that could affect our actual results. The Company cannot assure investors that future developments affecting the Company will be those that it has anticipated. Actual results may differ materially from these expectations due to many factors including, but not limited to: current and future government regulations, in particular regulations relating to the sale of firearms and ammunition, which may impact the supply and demand for the Company’s products and ability to conduct its business; the Company’s retail-based business model which is impacted by general economic and market conditions and economic, market and financial uncertainties that may cause a decline in consumer spending; the Company’s concentration of stores in the
About Sportsman’s
Sportsman’s
For press releases and certain additional information about the Company, visit the Investor Relations section of the Company's website at www.sportsmans.com.
Investor Contact:
Vice President, Investor Relations
Sportsman’s Warehouse
(801) 566-6681
investors@sportsmans.com
| SPORTSMAN’S WAREHOUSE HOLDINGS, INC. Condensed Consolidated Statements of Operations (Unaudited) (amounts in thousands, except per share data) |
||||||||||||||||||
| For the Thirteen Weeks Ended | ||||||||||||||||||
| % of net sales | % of net sales | YOY Variance | ||||||||||||||||
| Net sales | $ | 249,103 | 100.0% | $ | 244,240 | 100.0% | $ | 4,863 | ||||||||||
| Cost of goods sold | 173,460 | 69.6% | 170,454 | 69.8% | 3,006 | |||||||||||||
| Gross profit | 75,643 | 30.4% | 73,786 | 30.2% | 1,857 | |||||||||||||
| Operating expenses: | ||||||||||||||||||
| Selling, general and administrative expenses | 95,256 | 38.2% | 94,413 | 38.6% | 843 | |||||||||||||
| Loss from operations | (19,613 | ) | (7.8%) | (20,627 | ) | (8.4%) | 1,014 | |||||||||||
| Interest expense | 2,971 | 1.3% | 2,908 | 1.2% | 63 | |||||||||||||
| Other losses | - | 0.0% | - | 0.0% | - | |||||||||||||
| Loss before income taxes | (22,584 | ) | (9.1%) | (23,535 | ) | (9.6%) | 951 | |||||||||||
| Income tax benefit | (1,330 | ) | (0.5%) | (5,469 | ) | (2.2%) | 4,139 | |||||||||||
| Net loss | $ | (21,254 | ) | (8.6%) | $ | (18,066 | ) | (7.4%) | $ | (3,188 | ) | |||||||
| Loss per share | ||||||||||||||||||
| Basic | $ | (0.56 | ) | $ | (0.48 | ) | $ | (0.08 | ) | |||||||||
| Diluted | $ | (0.56 | ) | $ | (0.48 | ) | $ | (0.08 | ) | |||||||||
| Weighted average shares outstanding | ||||||||||||||||||
| Basic | 38,144 | 37,567 | 577 | |||||||||||||||
| Diluted | 38,144 | 37,567 | 577 | |||||||||||||||
| SPORTSMAN’S WAREHOUSE HOLDINGS, INC. Condensed Consolidated Balance Sheets (Unaudited) (amounts in thousands, except par value data) |
||||||||
| 2025 | 2025 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 3,560 | $ | 2,832 | ||||
| Accounts receivable, net | 2,934 | 2,410 | ||||||
| Merchandise inventories | 412,268 | 341,958 | ||||||
| Prepaid expenses and other | 22,592 | 18,802 | ||||||
| Total current assets | 441,354 | 366,002 | ||||||
| Operating lease right of use asset | 323,753 | 316,499 | ||||||
| Property and equipment, net | 162,813 | 167,838 | ||||||
| 1,496 | 1,496 | |||||||
| Definite lived intangibles, net | 253 | 267 | ||||||
| Total assets | $ | 929,669 | $ | 852,102 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 88,119 | $ | 64,041 | ||||
| Accrued expenses | 97,565 | 95,946 | ||||||
| Income taxes payable | 486 | 194 | ||||||
| Operating lease liability, current | 50,466 | 49,128 | ||||||
| Revolving line of credit | 141,864 | 74,654 | ||||||
| Total current liabilities | 378,500 | 283,963 | ||||||
| Long-term liabilities: | ||||||||
| Deferred income taxes | — | 946 | ||||||
| Term loan, net | 24,146 | 24,067 | ||||||
| Operating lease liability, noncurrent | 311,966 | 307,422 | ||||||
| Total long-term liabilities | 336,112 | 332,435 | ||||||
| Total liabilities | 714,612 | 616,398 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity: | ||||||||
| Preferred stock, |
— | — | ||||||
| Common stock, |
383 | 380 | ||||||
| Additional paid-in capital | 86,604 | 86,000 | ||||||
| Accumulated earnings | 128,070 | 149,324 | ||||||
| Total stockholders' equity | 215,057 | 235,704 | ||||||
| Total liabilities and stockholders' equity | $ | 929,669 | $ | 852,102 | ||||
| SPORTSMAN’S WAREHOUSE HOLDINGS, INC. Condensed Consolidated Statements Cash Flows (Unaudited) (amounts in thousands) |
||||||||
| Thirteen Weeks Ended | ||||||||
| 2025 | 2024 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (21,254 | ) | $ | (18,066 | ) | ||
| Adjustments to reconcile net income to net cash used in operating activities: | ||||||||
| Depreciation of property and equipment | 9,846 | 10,377 | ||||||
| Amortization of discount on debt and deferred financing fees | 136 | 38 | ||||||
| Amortization of definite lived intangible | 14 | 15 | ||||||
| Loss on asset dispositions | 64 | 16 | ||||||
| Noncash lease expense | (11,242 | ) | (3,187 | ) | ||||
| Deferred income taxes | (946 | ) | (5,467 | ) | ||||
| Stock-based compensation | 793 | 1,174 | ||||||
| Change in operating assets and liabilities, net of amounts acquired: | ||||||||
| Accounts receivable, net | (523 | ) | 18 | |||||
| Operating lease liabilities | 9,869 | 1,477 | ||||||
| Merchandise inventories | (70,310 | ) | (36,933 | ) | ||||
| Prepaid expenses and other | (3,828 | ) | 839 | |||||
| Accounts payable | 22,986 | 13,756 | ||||||
| Accrued expenses | 3,869 | 1,351 | ||||||
| Income taxes payable and receivable | 292 | (58 | ) | |||||
| Net cash used in operating activities | (60,234 | ) | (34,650 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchase of property and equipment, net of amounts acquired | (3,815 | ) | (3,312 | ) | ||||
| Proceeds from sale of property and equipment | 11 | 24 | ||||||
| Net cash used in investing activities | (3,804 | ) | (3,288 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Net borrowings on line of credit | 67,210 | 37,992 | ||||||
| Decrease in book overdraft | (2,239 | ) | (895 | ) | ||||
| Payment of withholdings on restricted stock units | (186 | ) | (132 | ) | ||||
| Payment of deferred financing costs and discount on term loan | (19 | ) | — | |||||
| Net cash provided by financing activities | 64,766 | 36,965 | ||||||
| Net change in cash and cash equivalents | 728 | (973 | ) | |||||
| Cash and cash equivalents at beginning of period | 2,832 | 3,141 | ||||||
| Cash and cash equivalents at end of period | $ | 3,560 | $ | 2,168 | ||||
| SPORTSMAN’S WAREHOUSE HOLDINGS, INC. GAAP and Non-GAAP Financial Measures (Unaudited) (amounts in thousands, except per share data) |
||||||||
| The following table presents the reconciliations of (i) GAAP net loss to adjusted net loss and (ii) GAAP diluted loss per share to adjusted diluted loss per share: | ||||||||
| For the Thirteen Weeks Ended | ||||||||
| Numerator: | ||||||||
| Net loss | $ | (21,254 | ) | $ | (18,066 | ) | ||
| Director and officer transition costs (1) | - | 324 | ||||||
| Valuation allowance (2) | 5,646 | - | ||||||
| Less tax benefit | - | (84 | ) | |||||
| Adjusted net loss | $ | (15,608 | ) | $ | (17,826 | ) | ||
| Denominator: | ||||||||
| Diluted weighted average shares outstanding | 38,144 | 37,567 | ||||||
| Reconciliation of loss per share: | ||||||||
| Diluted loss per share: | $ | (0.56 | ) | $ | (0.48 | ) | ||
| Impact of adjustments to numerator and denominator | 0.15 | 0.01 | ||||||
| Adjusted diluted loss per share: | $ | (0.41 | ) | $ | (0.47 | ) | ||
| (1) Expenses incurred relating to the departure of directors and officers and the recruitment of directors and key members of our senior management team. | ||||||||
| (2) Estimated tax benefit had the company not been in a deferred tax asset valuation allowance position. | ||||||||
| SPORTSMAN’S WAREHOUSE HOLDINGS, INC. GAAP and Non-GAAP Financial Measures (Unaudited) (amounts in thousands, except per share data) |
||||||||
| The following table presents the reconciliation of GAAP net loss to adjusted EBITDA for the periods presented: | ||||||||
| For the Thirteen Weeks Ended | ||||||||
| Net loss | $ | (21,254 | ) | $ | (18,066 | ) | ||
| Interest expense | 2,971 | 2,908 | ||||||
| Income tax benefit | (1,330 | ) | (5,469 | ) | ||||
| Depreciation and amortization | 9,860 | 10,392 | ||||||
| Stock-based compensation expense (1) | 793 | 1,174 | ||||||
| Director and officer transition costs (2) | - | 324 | ||||||
| Adjusted EBITDA | $ | (8,960 | ) | $ | (8,737 | ) | ||
| (1) Stock-based compensation expense represents non-cash expenses related to equity instruments granted to employees under our equity incentive plan and employee stock purchase plan. | ||||||||
| (2) Expenses incurred relating to the departure of directors and officers and the recruitment of directors and key members of our senior management team. | ||||||||
Source: Sportsman's Warehouse Holdings, Inc.