Sportsmans Warehouse's loss widens on impairment charges in Q4

Overview

• U.S. outdoor specialty retailer's Q4 revenue slight miss versus analyst expectations

• Adjusted diluted loss per share for Q4 was $0.10, down from prior yr

• Company recorded $17.8 mln impairment charges for ten underperforming stores in Q4

Outlook

• Company sees 2026 same-store sales between down 1% and up 2%

• Sportsmans Warehouse expects 2026 adjusted EBITDA of $30 mln to $36 mln

• Company expects to close about five stores after the holiday season, with no material impact to 2026 results

Result Drivers

• CATEGORY MIX SHIFT - Higher sales in firearms and ammunition, which carry lower margins, contributed to a decline in gross profit margin

• PROMOTIONAL ENVIRONMENT - Increased promotional activity and weaker sales in higher-margin categories pressured profitability

• COST CONTROL - SG&A expenses decreased due to lower payroll as company emphasized disciplined cost management

Company press release: ID:nGNX5ZsxKQ

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy"

• Wall Street's median 12-month price target for Sportsman's Warehouse Holdings Inc is $3.25, about 150% above its March 30 closing price of $1.30

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