What is the market's earnings forecast for Sportsman's next quarter?

What is the revenue and EPS growth rate for Sportsman's year over year?

What guidance did Sportsman's's management provide for the next earnings period?

What factors drove the changes in Sportsman's's revenue and profit?

What does Sportsman's do and what are its main business segments?

Did Sportsman's beat or miss consensus estimates last quarter?

What were the key takeaways from Sportsman's’s earnings call?

What is Sportsman's's gross profit margin?

- **Revenue Resilience**: Q3 net sales up 2.2% YoY, driven by 14% growth in fishing and 5.3% in hunting/shooting sports, despite macro challenges.
- **Inventory Efficiency**: Reduced inventory by $20M Q/Q, targeting < $330M ending FY2025 inventory vs. $342M prior year.
- **Strategic Shifts**: Increased focus on personal protection (Byrna demos in 116 stores) and digital marketing, with Q4 promotional spend to drive traffic.
- **Margin Pressures**: Revised FY2025 EBITDA guidance to $22-26M (down 25%) due to Q4 promotional activity and inventory management.
- **Liquidity Strength**: Projected free cash flow positive for FY2025 with lower debt balance, reflecting disciplined capital allocation.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 net sales $331.3M, up 2.2% YoY, driven by 5.3% growth in hunting/shooting sports and 14.1% in fishing. Personal protection category outperformed, with Byrna demos in 116 stores.
- **Inventory Management**: Reduced inventory by $20M Q/Q, ending Q3 at $424M (3.2% YoY decline). Targeting < $330M ending inventory for FY2025, down $12M YoY.
- **Challenges**: Q4 sales pressured by government shutdown and consumer caution, leading to revised FY2025 guidance: flat to slight net sales growth, EBITDA $22-26M vs. prior $28-32M.
- **Strategic Focus**: Digital-first marketing, local relevance assortments, and inventory precision to drive margins and free cash flow.

**【CFO Financial Commentary】**
- **Gross Margin**: 32.8% (up 100bps YoY) due to healthier inventory, lower freight, and higher fishing sales penetration. Offset by mix shift to lower-margin firearms/ammo.
- **SG&A**: $104.5M (31.5% of sales) vs. 30.8% YoY, driven by labor and digital marketing investments.
- **Liquidity**: Paid down $13.2M debt Q3, ending at $181.9M. Projected FY2025 free cash flow positive with lower debt balance.
- **Margins Under Pressure**: Q4 promotional activity and inventory management expected to weigh on gross margins, with EBITDA guidance revised down.

**【Q&A Key Highlights】**
- **Promotional Environment**: Increased marketing spend in Q4 to compete with peers, focusing on firearms/ammo and digital channels. No print ads this year, but aggressive in-store promotions.
- **Camping Category**: Q3 comps down high single digits, inventory down double digits. Redeploying capital to higher-margin categories.
- **Personal Protection**: Non-lethal products (e.g., Byrna) accretive to margins, attracting new customer segments.
- **Inventory by Category**: Fishing and hunting/shooting sports inventory up, camping and footwear down. Q4 focus on clearing aged inventory to avoid carryover.
- **Black Friday/Cyber Monday**: Promotional activity maintained, with doorbusters reintroduced in December to drive traffic.


Sportsman's Warehouse Holdings, Inc. (SPWH) Q3 2026 Earnings Call Transcript

Net sales

SPWH

SPWH fundamentals

You can ask Aime