Particle.news
Download on the App Store

Sportsman's Warehouse Beats Q1 Estimates and Sees After‑Hours Stock Rally

Management says inventory cuts along with e-commerce upgrades and a new loyalty program will support cash flow and reduce debt.

Overview

  • The company reported an adjusted loss of $0.39 per share and revenue of about $256.1 million, both better than analysts expected, according to the company release and call.
  • Net sales rose 2.8% and same-store sales increased 2.1%, driven mainly by stronger hunting and shooting sales and a seasonal boost in fishing.
  • Gross margin narrowed to roughly 29.6% as higher sales in lower-margin categories like firearms and ammunition changed the product mix.
  • Management reiterated full‑year fiscal 2026 guidance for flat-to-modest net sales and adjusted EBITDA of $30 million to $36 million while outlining targets to cut inventory and improve omni-channel operations.
  • Investors reacted positively, sending the stock higher by about 10.6% in after‑hours trading, reflecting approval of the quarter and the plan to free cash and lower leverage.