Sportsman’s Warehouse Holdings reported second-quarter results on September 1 that emphasized balance-sheet improvement over revenue growth. Net sales rose 0.6% to $295.6 million, while the company posted a narrower net loss of $4.4 million compared with $7.1 million in the year-earlier period. Adjusted EBITDA climbed to $8.7 million from $8.3 million, signaling progress in operational efficiency.
The company’s inventory reduction strategy has yielded measurable results. Total inventory fell 10% year over year to $399 million, representing a $44.5 million reduction achieved while same-store sales remained flat rather than declining. This discipline generated cash improvements, with net debt dropping $26 million to $169 million. Management amended the term loan and revolving credit facility, extending both maturities to June 2031, providing extended runway for debt service.
Certain business segments demonstrated strength within the overall results. Hunting and shooting sports sales increased 6.7%, with firearms up 8% and ammunition growing nearly 11%. In-stock levels on core products improved to more than 80% from roughly 50% two years earlier. E-commerce sales grew nearly 3%, marking the ninth consecutive quarter of online growth outpacing total company sales, with more than 70% of online orders completed through in-store pickup.
Headwinds offset some gains in other areas. Same-store sales were flat, attributed partly to elevated fuel prices affecting the core customer base. Fishing sales declined approximately 2% due to drought conditions in Western states, while camping and softlines also fell as inventory cleanup continued. The company announced one store closure on January 31, 2027, with two additional closures under negotiation.
Looking ahead, management maintained a full-year sales guidance range that encompasses both a potential 1% decline and a 1% increase, leaving outcomes uncertain. Institutional investor interest showed modest signs of building, with 12 hedge funds holding positions compared with 11 the prior quarter. Short interest remained low at 1.32% of the float, suggesting limited organized skepticism about the recovery narrative. The company enters the second half of the year with reduced debt obligations and improved inventory positioning, though external pressures from fuel costs and regional drought conditions persist as potential drags on performance.
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