Sportsmans 2026 Q2 Earnings Worsening Losses Amid Revenue Growth

Sportsman's reported its fiscal 2026 Q2 earnings on September 4, 2025, showing a modest rise in revenue but a deepening net loss. The company’s financial performance missed profit expectations, prompting a cautious outlook from management, though revenue growth was in line with updated guidance.

Revenue
The total revenue for Sportsman's increased by 1.8% to $293.90 million in the second quarter of 2026, compared to $288.73 million in the same period of 2025. The increase was primarily driven by net sales, which accounted for the full $293.90 million in total revenue.

Earnings/Net Income
Sportsman's losses worsened in the second quarter of 2026, with a net loss of $-7.08 million, representing a 19.9% increase in the deficit compared to $-5.91 million in 2025 Q2. On a per-share basis, the loss widened to $-0.18 from $-0.16, marking a 12.5% increase in the negative EPS. This reflects continued operational challenges.

Price Action
The stock of Sportsman's experienced significant short-term volatility following the earnings report. It surged 11.90% during the latest trading day and gained 10.66% over the past full trading week, though it declined 11.21% month-to-date.

Post Earnings Price Action Review
Following the earnings report, Sportsman's stock exhibited a sharp one-day jump of 11.90%, driven by optimism around the company’s strategic initiatives and localized performance. However, the broader market context led to a 10.66% weekly gain, masking a more subdued month-to-date performance of -11.21%. The mixed reaction suggests investor skepticism about the company’s long-term profitability despite positive operational indicators.

CEO Commentary
Paul Stone, President, CEO & Director, highlighted the second consecutive quarter of comp store sales growth, with same-store sales up 2.1% despite challenging macroeconomic conditions and a difficult June comparison. He attributed the performance to localized merchandising and geotargeted marketing strategies, pointing to strong sales in Alaska and a strong relative position in the firearms sector amid a 4.9% decline in NICS checks. Stone expressed confidence in inventory management and strategic initiatives, including partnerships with USCCA and expansion of personal protection categories with TASER and Byrna.

Guidance
Sportsman’s has raised its full-year 2025 net sales guidance to flat growth, up from a previous forecast of down 1%, with an optimistic top end of up 3.5%. The company reiterated its adjusted EBITDA guidance of $33–$45 million and maintained its CAPEX forecast of $20–$25 million for technology and store improvements. CFO Jennifer Fall Jung emphasized debt reduction and inventory optimization, noting that peak debt levels were reached in Q2 and that the company expects to finish the year with inventory levels below 2024.

Additional News
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