Sportsman’s Warehouse (NASDAQ:SPWH) Posts Earnings Results, Beats Estimates By $0.04 EPS

Sportsman’s Warehouse (NASDAQ:SPWH) posted its quarterly earnings data on Tuesday. The company reported ($0.08) EPS for the quarter, topping analysts’ consensus estimates of ($0.12) by $0.04, FiscalAI reports. Sportsman’s Warehouse had a negative return on equity of 10.68% and a negative net margin of 4.17%.The business had revenue of $295.58 million for the quarter, compared to analyst estimates of $295.05 million.

Here are the key takeaways from Sportsman’s Warehouse’s conference call:

• Q2 sales were broadly stable, with net sales up 0.6% to $295.6 million and same-store sales essentially flat, in line with expectations. Hunting and shooting sports grew 6.7%, led by firearms and ammunition, while fishing, camping, apparel, and footwear declined.
• Gross margin improved 50 basis points to 32.5%, while adjusted EBITDA rose to $8.7 million from $8.3 million and adjusted net loss narrowed to $3.1 million. Cost controls, lower freight expense, inventory discipline, and a tariff refund helped offset heavier promotions.
• Inventory fell $44.5 million, or 10%, year over year, and net debt declined $26 million to $169 million. Management expects inventory to finish below 2025 levels and remains focused on generating free cash flow to reduce debt.
• Management reiterated fiscal 2026 guidance for sales ranging from down 1% to up 2%, adjusted EBITDA of $30 million to $36 million, and capital expenditures of $20 million to $25 million. Executives remain optimistic about improved fall and holiday assortments, although elevated fuel prices and a pressured consumer are expected to sustain a promotional environment.
• E-commerce sales increased nearly 3% for the ninth consecutive quarter of outpacing total company sales, with more than 70% of online orders picked up in stores. The company is also targeting an early 2027 rollout of a redesigned loyalty program intended to increase customer spending, retention, and margins.

Sportsman’s Warehouse Stock Up 0.8%

Shares of SPWH opened at $1.20 on Wednesday. The company has a debt-to-equity ratio of 0.27, a quick ratio of 0.07 and a current ratio of 1.18. The company has a 50-day simple moving average of $1.20 and a 200-day simple moving average of $1.29. Sportsman’s Warehouse has a 52 week low of $1.08 and a 52 week high of $3.55. The firm has a market capitalization of $46.82 million, a P/E ratio of -0.92 and a beta of 0.42.

Hedge Funds Weigh In On Sportsman’s Warehouse

Several large investors have recently added to or reduced their stakes in the company. Arrowstreet Capital Limited Partnership raised its stake in shares of Sportsman’s Warehouse by 245.1% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 1,082,777 shares of the company’s stock valued at $3,736,000 after buying an additional 769,051 shares in the last quarter. Archon Capital Management LLC boosted its position in shares of Sportsman’s Warehouse by 51.6% during the 4th quarter. Archon Capital Management LLC now owns 1,668,905 shares of the company’s stock valued at $2,437,000 after acquiring an additional 568,151 shares in the last quarter. JPMorgan Chase & Co. increased its stake in Sportsman’s Warehouse by 123.4% in the second quarter. JPMorgan Chase & Co. now owns 744,496 shares of the company’s stock valued at $2,569,000 after acquiring an additional 411,295 shares during the period. Manatuck Hill Partners LLC bought a new stake in Sportsman’s Warehouse in the second quarter valued at about $1,229,000. Finally, Bridgeway Capital Management LLC raised its position in Sportsman’s Warehouse by 124.3% in the third quarter. Bridgeway Capital Management LLC now owns 486,036 shares of the company’s stock worth $1,346,000 after purchasing an additional 269,389 shares in the last quarter. Institutional investors and hedge funds own 83.04% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research analysts have commented on the company. Wall Street Zen raised Sportsman’s Warehouse from a “sell” rating to a “hold” rating in a research report on Saturday, June 6th. Weiss Ratings cut Sportsman’s Warehouse from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Thursday, August 20th. Finally, Zacks Research downgraded shares of Sportsman’s Warehouse from a “strong-buy” rating to a “hold” rating in a research note on Thursday, August 6th. Two analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $2.58.

Sportsman’s Warehouse Company Profile

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.