Sportsman’s Warehouse stock tumbles 12% on wider-than-expected Q1 loss

Published 03/06/2025, 21:44
Sportsman’s Warehouse stock tumbles 12% on wider-than-expected Q1 loss

WEST JORDAN, Utah - Sportsman’s Warehouse Holdings, Inc. (NASDAQ:SPWH) saw its stock plunge 12% after reporting a wider-than-expected loss for the first quarter, despite beating revenue estimates.

The outdoor sporting goods retailer posted a Q1 adjusted loss of $0.47 per share, missing analyst expectations for a loss of $0.46 per share. Revenue came in at $249.1 million, surpassing the consensus estimate of $240.39 million and growing 2% YoY.

Sportsman’s Warehouse delivered its first positive same-store sales growth in nearly four years, with comparable sales rising 2% compared to a 13.5% decline in Q1 last year. The company cited improved inventory precision and a focus on core items as driving the sales improvement.

"Our focus on improving inventory precision, leaning into local expertise, executing our new digital-first marketing strategy, and establishing Sportsman’s as the authority in personal protection is driving meaningful progress across the business," said CEO Paul Stone.

Despite the revenue beat, the wider-than-anticipated loss appeared to disappoint investors, sending shares sharply lower. The company maintained its full-year 2025 outlook, expecting net sales between -1% to +3.5% growth and adjusted EBITDA of $33-$45 million.

Gross margin expanded slightly to 30.4% from 30.2% last year, while selling, general and administrative expenses as a percentage of sales improved to 38.2% from 38.6%.

The company ended Q1 with $162.4 million in net debt and total liquidity of $122.1 million. Sportsman’s Warehouse plans to open one new store in Surprise, Arizona during fiscal 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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