Sportsman’s Warehouse Holdings, Inc. (SPWH) Q1 2026: Revenue Growth Amid Losses — Cautiously Optimistic

Sportsman’s Warehouse Holdings, Inc. reported a mixed first quarter for fiscal year 2026, with net sales increasing by $7.0 million or +2.8% year-over-year, reaching $256.1 million compared to $249.1 million in Q1 2025. However, the company continues to face challenges, posting a net loss of $(21.8) million, slightly worse than the $(21.3) million loss from the same period last year.

Key Financial Metrics:

• Net Sales: $256.1 million, up $7.0 million or +2.8% YoY
• Same Store Sales: Increased by 2.1%
• Gross Profit: $75.8 million, or 29.6% of net sales, compared to $75.6 million, or 30.4% of net sales in Q1 2025
• SG&A Expenses: $93.9 million, or 36.7% of net sales, down from $95.3 million, or 38.2% of net sales YoY
• Net Loss: $(21.8) million, compared to $(21.3) million in Q1 2025
• Adjusted Net Loss: $(15.1) million, improved from $(15.6) million YoY
• Adjusted EBITDA: $(8.1) million, compared to $(9.0) million in Q1 2025
• Diluted Loss Per Share: $(0.56), unchanged from Q1 2025
• Adjusted Diluted Loss Per Share: $(0.39), improved from $(0.41) YoY

Analyst Opinion:

This quarter presents a mixed bag for shareholders. On one hand, the increase in net sales and same store sales indicates a positive trend in consumer demand, particularly in the hunting and shooting sports categories, which saw a 7.4% gain. The company’s efforts in e-commerce also paid off, with online sales rising over 6%. However, the persistent net loss and slight decline in gross profit margin raise concerns about profitability and cost management. The company’s ability to maintain disciplined SG&A expenses is a positive sign, but the overall financial performance still reflects significant challenges in the current economic environment.

Dividend and Share Buyback:

There were no announcements regarding dividends or share buybacks in this quarter's report.

Guidance:

Sportsman’s Warehouse has reaffirmed its full-year 2026 guidance, projecting same store sales to range from down 1.0% to up 2.0% and adjusted EBITDA between $30 million and $36 million. Capital expenditures are expected to be between $20 million and $25 million, primarily for technology investments and general store maintenance.

Forward Catalyst:

Investors should closely monitor the company’s performance in the upcoming quarters, particularly how it navigates consumer spending pressures and manages inventory levels. The effectiveness of its strategic initiatives to enhance the online shopping experience and the impact of seasonal demand on sales will be critical indicators of future performance. Additionally, any updates on debt reduction efforts and cash flow generation will be essential for assessing the company’s financial health moving forward.

Note: The amounts in the following tables are in thousands, except per share data.

For	the	Thirt…	% of net	May 2,	2026	% of	net	May 3,	2025	% of	YOY	Varia…
Weeks		Ended	sales			sales
Net sales	$ 256,0	...	100.0%	$ 249,1...	100.0%	$ 6,975
Cost of goods sold	$ 180,2	...	70.4%	$ 173,4...	69.6%	$ 6,835
Gross profit	$ 75,783	...	29.6%	$ 75,643	30.4%	$ 140
Operating expenses
Selling, general,		and
administrative	$ 93,887	...	36.7%	$ 95,256	38.2%	$(1,369)
expenses
Loss from	$(18,1..)		-7.1%	$(19,6..	-7.8%	$ 1,509
operations
Other losses	$ 77		0.0%	$ -	0.0%	$ 77
Interest expense	$ 2,624		1.0%	$ 2,971	1.3%	$(347)
Loss before income	$(20,8..		-8.1%	$(22,5..	-9.1%	$ 1,779
taxes
Income tax	$ 1,043		0.4%	$(1,330)	-0.5%	$ 2,373
expense (benefit)
Net loss	$(21,8..		-8.5%	$(21,2..	-8.6%	$ (594)
Loss per share
Basic	$(0.56)			$(0.56)
Diluted	$(0.56)			$(0.56)
Weighted-average
shares outstanding
Basic	38,764			38,144
Diluted	38,764			38,144

Assets	May 2, 2026	January 31, 2026
Current assets:
Cash and cash equivalents	$ 2,054	$ 1,659
Accounts receivable, net	$ 1,644	$ 4,390
Merchandise inventories	$ 387,149	$ 312,858
Prepaid expenses and other	$ 19,857	$ 18,834
Total current assets	$ 410,704	$ 337,741
Operating lease right of use asset	$ 295,578	$ 288,590
Finance lease right of use asset	$ 1,136	$ 1,215
Property and equipment, net	$ 128,892	$ 133,329
Goodwill	$ 1,496	$ 1,496
Definite lived intangibles, net	$ 197	$ 211
Total assets	$ 838,003	$ 762,582
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$ 75,892	$ 44,933
Accrued expenses	$ 110,709	$ 102,450
Income taxes payable	$ 710	$ 64
Operating lease liability, current	$ 54,991	$ 53,763
Finance lease liability	$ 298	$ 295
Revolving line of credit	$ 106,155	$ 47,524
Total current liabilities	$ 348,755	$ 249,029
Long-term liabilities:
Deferred income taxes	$ 408	$ —
Term loan, net	$ 44,323	$ 44,165
Operating lease liability, noncurrent	$ 276,489	$ 279,933
Finance lease liability, noncurrent	$ 824	$ 895
Total long-term liabilities	$ 322,044	$ 324,993
Total liabilities	$ 670,799	$ 574,022
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $.01 par value; 20,000 shares authorized; 0 shares issued and outstanding	$ —	$ —
Common stock, $.01 par value; 100,000 shares authorized; 38,968 and 38,641 shares issued and outstanding, respectively	$ 390	$ 386
Additional paid-in capital	$ 89,399	$ 88,911
Accumulated earnings	$ 77,415	$ 99,263
Total stockholders’ equity	$ 167,204	$ 188,560
Total liabilities and stockholders’ equity	$ 838,003	$ 762,582

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