Sportsman's Warehouse(SPWH +0.00%) reported second quarter 2025 results on Aug. 5, 2025, highlighting net sales of $393.9 million, up 1.8% year-over-year, and same-store sales increased 2.1%, while it narrowed its adjusted net loss to $4.7 million. The company signaled strategic inventory investment, positive comp momentum, and raised the lower end of its fiscal 2025 (period ending Jan. 31, 2026) net sales guidance to reflect flat growth to up to 3.5% year-over-year, and reiterated its adjusted EBITDA guidance of $33 million to $45 million for fiscal 2025. Key insights detailed below reveal competitive share gains, operational execution on inventory and margin levers, and evolving category strategies shaping the long-term outlook.
Transformation strategy drives comp growth and share gains
Company-wide comp store sales turned positive for the second consecutive quarter, with firearms units up over 4% despite a 4.9% quarterly decline in adjusted NICS (National Instant Criminal Background Check System, a firearms demand proxy) checks, implying meaningful market share gains. Category growth was led by hunting (up 4% year-over-year), fishing (up 10.9% year-over-year), and ammunition sales grew 10%, while camping sales were down 10% year-over-year, following the strategic exit of slow-moving SKUs.
"Despite ongoing consumer macroeconomic headwinds, we delivered our second consecutive quarter of comp store sales growth. Same-store sales were up 2.1% compared to last year, with positive comps achieved each month of the quarter. Importantly, this growth came even as June faced a difficult comparison due to last year's pull-forward of sales in California ahead of the new firearm and ammunition taxes that took effect in July. Our efforts to localize merchandise assortments and geo-target our marketing are delivering strong early results. For example, in Alaska, sales in the second quarter grew by high single digits, reflecting how well these initiatives are resonating with customers. Aligning our merchandising and marketing to local outdoor pursuits and solution selling is proving to be a critical unlock not only for driving growth but also for improving inventory productivity and efficiency. Our firearms business once again outperformed the industry. While adjusted NICS checks declined 4.9% in the quarter, our unit sales increased more than 4% versus last year, further evidence that we are capturing market share."
-- Paul Stone, Chief Executive Officer
This momentum underscores the company’s ability to outperform underlying industry demand trends by leveraging locally tailored assortments, digital marketing, and strategic category focus.
Margin management offsets inventory build and sales mix shifts
Gross margin increased 80 basis points year-over-year to 32%, aided by improved product margins and higher fishing penetration, but mitigated by a 40 basis point freight headwind from proactive inventory pull-forward ahead of hunting season and unfavorable sales mix toward lower-margin firearms and ammunition. SG&A as a percentage of net sales rose to 33.1% versus 32.7% year-over-year, reflecting investments in store labor, digital marketing, and omnichannel traffic and sales initiatives.
"Gross margin for the quarter was 32%, an 80 basis point improvement versus Q2 last year. The increase was largely driven by improved overall product margins from healthier inventory and higher penetration of sales from our fishing department. This increase was partially offset by a mix shift to firearms and ammo, which has a lower gross margin, a lower penetration in camping, which carries a higher margin rate, and increased freight tied to our strategic pull-forward of inventory to be store-ready for our key hunting season. The freight expense due to the inventory pull-forward resulted in an estimated 40 basis points drag on margin in the quarter."
-- Jennifer Paul Young, Chief Financial Officer
Margin improvement, despite inventory build and mix headwinds, demonstrates management’s ability to balance strategic investments with disciplined cost control and category management.
Sportsman's Warehouse grows omnichannel strength and customer attachment rates
Over 70% of online transactions were fulfilled through buy-online, pick-up-in-store (BOPUS), demonstrating effective omnichannel integration that drives incremental store traffic. This was supported by inventory investments in fast-turning hunting, fishing, and personal protection categories, and ongoing efforts to expand cross-category attachments around core purchases.
"Our e-commerce business grew 3% over last year and continues to be a strength of our omnichannel retail strategy. Importantly, over 70% of online transactions were fulfilled through our buy online pick up in store (BOPUS) program, underscoring how e-commerce drives significant traffic and sales into our brick-and-mortar locations. At the same time, our ship-to-home business remains strong, reflecting our ability to capture consumer demand well beyond our physical store footprint. With these dual strengths, we are uniquely positioned to gain market share as e-commerce continues to outpace traditional retail channels."
-- Paul Stone, Chief Executive Officer
The company’s successful blending of e-commerce and physical retail supports broader geographic market reach, increases customer engagement, and fortifies competitive differentiation against both large-format and niche specialty retailers.
Looking Ahead
Management raised the lower end of full-year fiscal 2025 (period ending Jan. 31, 2026) net sales guidance to reflect flat growth (from prior down 1%), now ranging up to 3.5% year-over-year, and reiterated adjusted EBITDA is expected to be between $33 million and $45 million for fiscal 2025. The company forecasts year-end inventory to be below fiscal 2024 levels, expects to generate positive free cash flow, and continue debt reduction. No additional quantitative guidance was provided for store openings or specific category targets, but strategic priorities include reinvestment in technology, ongoing optimization of product assortment, and disciplined operating expense management despite potential tariff-related margin pressure in the second half.
