Q1 2025 Sportsmans Warehouse Holdings Inc Earnings Call Transcript
Key Points
- Sportsman's Warehouse Holdings Inc (SPWH) reported a 2% increase in net sales for Q1 2025, marking the first positive year-over-year sales comp in nearly four years.
- The company's e-commerce business posted an 8% increase over last year, driven by a new digital-first marketing strategy and improved omnichannel customer experience.
- Firearms unit sales increased nearly 7% over last year, significantly outpacing the adjusted NICS data, indicating market share gains.
- Positive sales comps were achieved in most core categories, including firearms, clothing and footwear, ammunition, and especially fishing, which was up 11%.
- The company is executing a strategic plan focused on inventory precision, local relevance, personal protection, and brand awareness, which is showing early signs of success.
- Despite the positive sales growth, Sportsman's Warehouse Holdings Inc (SPWH) reported a net loss of $21.3 million for Q1 2025, compared to a net loss of $18.1 million in the prior year.
- Gross margin was slightly pressured by increased freight expenses tied to strategic inventory pull forward in anticipation of higher tariffs.
- SG&A expenses remained high at $95.3 million, representing 38.2% of net sales, though slightly improved from the prior year.
- The company pulled forward approximately $20 million in inventory to mitigate tariff impacts, temporarily elevating inventory levels.
- Camping sales were down, attributed to a later spring and the timing of Easter, impacting overall category performance.
Hello everyone and welcome to the Sportsmans Warehouse first quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. (Operator Instructions)
Please note this event is being recorded. Now it's my pleasure to turn the call over to the Vice President of Investor relations, Riley Timmer. The floor is yours.
Thank you, operator. Participating on our Q1 2025 call today is Paul Stone, our Chief Executive Officer; and Jeff White, our Chief Financial Officer. I will now remind everyone of the company's Safe Harbor language.
The statements we make today contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which includes statements regarding expectations about our future results of operations, demand for our products, and growth of our industry. Actual results may differ materially from those suggested in such statements due to a number of risks and uncertainties,
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