Sportsman’s Warehouse Reports Q2 Fiscal 2025 Results with Increased Net Sales and Losses

Sportsman’s Warehouse Holdings, Inc. reported its financial results for the second quarter of fiscal year 2025, ending August 2, 2025, revealing a net loss of $7.1 million, or $(0.18) per share, compared to a net loss of $5.9 million, or $(0.16) per share, in the same period last year. The company’s net sales increased by 1.8% to $293.9 million, up from $288.7 million in the prior year, driven primarily by growth in the Fishing and Hunting and Shooting departments. E-commerce sales accounted for over 19% of total sales, reflecting a 3% increase year-over-year.

The company’s gross profit rose to $93.9 million, a 4.4% increase from $90 million in the previous year, with gross margin improving to 32.0% from 31.2%. This margin enhancement was attributed to stronger product margins, particularly in the Fishing department, although it was partially offset by a shift towards lower-margin firearms and ammunition products. Selling, general, and administrative expenses also increased by 3.0% to $97.2 million, primarily due to higher payroll costs, which rose by $1.9 million.

In terms of operational metrics, Sportsman’s Warehouse operated 146 stores across 32 states as of the end of the quarter. The company did not open any new stores in fiscal year 2024 but plans to open one new store in fiscal year 2025. The company’s inventory levels increased significantly, with merchandise inventories rising to $443.5 million from $342.0 million year-over-year, reflecting a strategic decision to stock up in anticipation of increased tariffs and to ensure adequate inventory for the hunting season.

The company’s financial position showed total assets of $948.9 million, up from $852.1 million at the end of the previous fiscal year. Total liabilities also increased to $740.0 million from $616.4 million, driven by higher accounts payable and increased borrowings under its revolving credit facility and term loan. As of August 2, 2025, Sportsman’s Warehouse had $1.8 million in cash and cash equivalents, down from $2.8 million at the end of the previous fiscal year.

Looking ahead, Sportsman’s Warehouse remains cautious about macroeconomic conditions, including inflation and potential changes in trade policies that could impact inventory costs. The company is focused on managing expenses and optimizing inventory levels while continuing to enhance its e-commerce capabilities. The outlook for the remainder of fiscal year 2025 includes a commitment to financial discipline and a strategic focus on maintaining inventory in key product categories to drive sales.