Sportsman’s Warehouse Reports 2% Sales Increase but Wider Net Loss in Q1 FY 2025

Sportsman’s Warehouse Holdings, Inc. reported a net sales increase of 2.0% for the first quarter of fiscal year 2025, totaling $249.1 million compared to $244.2 million in the same period of the previous year. The company’s gross profit also rose by 2.5% to $75.6 million, resulting in a gross margin of 30.4%, up from 30.2% in the prior year. Despite these gains, Sportsman’s Warehouse recorded a net loss of $21.3 million, widening from a loss of $18.1 million in the first quarter of fiscal year 2024. The loss per share for the quarter was $(0.56), compared to $(0.48) in the previous year.

The company experienced notable changes in its operational metrics, with same-store sales also increasing by 2.0%. The growth was primarily driven by strong performance in the Fishing and Hunting and Shooting departments, which saw sales increases of $3.0 million and $2.4 million, respectively. E-commerce sales accounted for over 20% of total sales, reflecting an 8% increase year-over-year. However, the Camping and Optics, Electronics, Accessories, and Other departments faced declines, attributed to broader macroeconomic conditions and seasonal factors.

In terms of strategic developments, Sportsman’s Warehouse continues to focus on inventory management, having increased its merchandise inventories to $412.3 million from $342.0 million year-over-year. The company operates 146 stores across 32 states and plans to open one new store in fiscal year 2025, a reduction from previous expansion plans due to current economic uncertainties. The company is also actively managing its expenses, with selling, general, and administrative expenses rising only slightly to $95.3 million, reflecting a decrease as a percentage of net sales.

The company’s financial position remains stable, with total assets increasing to $929.7 million from $852.1 million at the end of the previous fiscal year. However, total liabilities also rose to $714.6 million, up from $616.4 million, largely due to increased borrowings under its revolving credit facility, which stood at $155.5 million as of May 3, 2025. The company reported cash and cash equivalents of $3.6 million, an increase from $2.8 million at the end of the previous fiscal year. Looking ahead, Sportsman’s Warehouse anticipates continued challenges from macroeconomic factors, including inflation and potential tariff increases, which may impact inventory costs and consumer spending. The company remains focused on managing its operational costs and maintaining inventory levels to navigate these uncertainties effectively.