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Aug 02
Sportsman's Warehouse Q2 2025 Earnings Report
Sportsman's Warehouse grew same-store sales and gross margin in Q2 2025, but posted a wider net loss due to elevated SG&A and interest expenses.
Key Takeaways
Sportsman's Warehouse reported Q2 2025 revenue of $293.9M and a net loss of $7.1M. Same-store sales increased 2.1%, and gross margin expanded by 80 bps. Adjusted EBITDA improved year-over-year, supported by higher sales in core departments and better inventory health.
Revenue grew 1.8% YoY to $293.9M, driven by strong fishing and firearms categories.
Same-store sales increased 2.1%, the second consecutive quarter of positive comps.
Gross margin expanded to 32.0%, up 80 basis points from Q2 2024.
Adjusted EBITDA increased to $8.3M from $7.4M YoY despite a net loss of $7.1M.
Sportsman's Warehouse
Sportsman's Warehouse
Forward Guidance
The company raised its FY25 sales outlook to flat-to-3.5% growth and reaffirmed its adjusted EBITDA guidance of $33M to $45M, expecting debt and inventory levels to decline in the second half of the year.
Positive Outlook
- Full-year sales guidance raised to flat to 3.5% growth.
- Adjusted EBITDA guidance reaffirmed at $33M–$45M.
- Inventory expected to decline in H2 2025 after strategic build.
- EBITDA improvement anticipated in back half of year.
- New store opening scheduled for November in Arizona.
Challenges Ahead
- Net loss widened to $7.1M from $5.9M YoY.
- SG&A expenses rose 3% due to reinvestments.
- Interest expense increased by over half a million YoY.
- Cash position declined to just $1.8M.
- Operating margin remains negative at -1.1%.