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1. Company Snapshot

1.a. Company Description

Sportsman's Warehouse Holdings, Inc., together with its subsidiaries, operates as an outdoor sporting goods retailer in the United States.It offers camping products, such as backpacks, camp essentials, canoes and kayaks, coolers, outdoor cooking equipment, sleeping bags, tents, and tools; and apparel products, including camouflage, jackets, hats, outerwear, sportswear, technical gear, and work wear.The company also provides fishing products comprising bait, electronics, fishing rods, flotation items, fly fishing products, lines, lures, reels, tackles, and small boats; and foot wear products consisting of hiking and work boots, socks, sport sandals, technical footwear, trial and casual shoes, and waders.


In addition, it offers hunting and shooting products, such as ammunition, archery items, ATV accessories, blinds and tree stands, decoys, firearms, firearms safety and storage products, reloading equipment, and shooting gear products; and optics, electronics, and accessories, including gift items, GPS devices, knives, lighting, optics, and two-way radios.Further, the company's stores provide archery technician services, fishing-reel line winding, bore sighting and scope mounting, and cleaning services, as well as issues hunting and fishing licenses.Additionally, it offers various private label and special make-up offerings under the Rustic Ridge, Killik, Vital Impact, Yukon Gold, Lost Creek, and Sportsman's Warehouse brands.


As of May 26, 2022, the company operated through 126 stores.Sportsman's Warehouse Holdings, Inc.was founded in 1986 and is headquartered in West Jordan, Utah.

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1.b. Last Insights on SPWH

Recent negative drivers behind Sportsman's Warehouse Holdings, Inc.'s stock performance include: * The company's announcement of an enhanced benefits program for veterans, while a positive initiative, may have drawn attention away from its core business operations. * The launch of the "Honoring Your Service, Supporting Your Adventures" program may have increased costs, potentially impacting the company's bottom line. * The company's focus on corporate social responsibility initiatives may have led to a shift in investor attention, potentially overshadowing its financial performance. * The recent earnings release showed a beat in earnings, but the company's revenue growth was not as strong as expected, which may have contributed to the negative sentiment.

1.c. Company Highlights

2. Sportsman's Warehouse Q3 Earnings: A Mixed Bag

Sportsman's Warehouse Holdings, Inc. reported its third-quarter 2025 earnings, with same-store sales growing 2.2% year-over-year, marking the third consecutive quarter of positive growth. Net sales were $331.3 million, up 2.2% compared to the prior year. Gross margin improved 100 basis points to 32.8%, driven by healthier inventory, lower freight expense, and improved shrink. Adjusted EBITDA grew 13% to $18.6 million, while adjusted net income was $3 million, or $0.08 per diluted share, slightly missing estimates of $0.09 per diluted share.

Publication Date: Dec -07

📋 Highlights
  • Same-Store Sales Growth:: 2.2% YoY increase for third consecutive quarter, indicating sustained retail demand.
  • Gross Margin Improvement:: 32.8% gross margin, up 100 bps, driven by inventory efficiency and lower freight costs.
  • Adjusted EBITDA Growth:: 13% rise to $18.6M, reflecting operational leverage despite SG&A pressures.
  • Inventory Reduction:: $14.1M YoY decline (3.2%) and $20M drop from Q2 to Q3, enhancing capital efficiency.
  • Category Performance:: Fishing (+14.1%) and hunting/shooting (+5%) growth, with personal protection driving new customer acquisition.

Operational Highlights

The company saw growth across various categories, with hunting and shooting sports increasing 5%, fishing growing 14.1%, and apparel growing 1.4%. The company opened a new store in Surprise, Arizona, with a unique personal protection-focused format, which has been a success with accretive margins. Personal protection, including non-lethal options like tasers, is seen as a strategic pillar, and the company plans to continue to expand it.

Challenges and Opportunities

The company is navigating a challenging consumer environment, impacted by a prolonged government shutdown. Q3 has been challenging, with same-store sales down high single digits, but inventory down double digits. The company is managing this trend and sees an area of opportunity in inventory and assortment, which will be a focus for 2026. The camping category was hit hard, particularly in inventory reduction, as the company redeployed working capital dollars.

Valuation and Outlook

With a P/E Ratio of -1.79 and an EV/EBITDA of 37.27, the market is pricing in significant growth expectations. Analysts estimate next year's revenue growth at 1.5%. The company revised its full-year guidance due to a tough Q4 environment, expecting net sales to be flat to up slightly, and adjusted EBITDA to be in the range of $22 million to $26 million. The company is focused on inventory efficiency, tight control of variable expenses, and improved profitability, with preliminary thoughts on margin expansion for fiscal 2026.

Margin Expansion Plans

The company is focusing on efficiency and profitable growth, managing inventory and margins, and continuing to evaluate its cost structure. With a current P/S Ratio of 0.05, the market is pricing in a relatively low revenue multiple. The company's plans to be more aggressive with promotions, especially in the hunt and shoot category, which is a key driver of sales, may help drive growth and improve margins.

3. NewsRoom

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These Analysts Slash Their Forecasts On Sportsman's Warehouse After Q3 Results

Dec -05

Source: benzinga.com

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Sportsman's Warehouse Holdings, Inc. (SPWH) Q3 2026 Earnings Call Transcript

Dec -04

Source: seekingalpha.com

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Sportsman's Warehouse (SPWH) Q3 Earnings and Revenues Miss Estimates

Dec -04

Source: zacks.com

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Sportsman's Warehouse Holdings, Inc. Announces Third Quarter 2025 Financial Results

Dec -04

Source: globenewswire.com

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Sportsman's Warehouse Holdings, Inc. Schedules Third Quarter 2025 Earnings Conference Call

Nov -20

Source: globenewswire.com

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Wall Street Insiders Are Loading Up on These 3 Stocks

Oct -08

Source: 247wallst.com

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Sportsman's Warehouse Holdings, Inc. Appoints Michael Tucci to its Board of Directors

Sep -11

Source: globenewswire.com

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Sportsman's Warehouse Q2: Still A Hairy Situation, Too Risky For Me

Sep -05

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.80%)

6. Segments

Hunting and Shooting

Expected Growth: 4.83%

Strong demand for firearms and ammunition, driven by increased participation in hunting and shooting sports, coupled with favorable regulatory environment and growing popularity of outdoor recreation, contribute to the 4.83% growth of Hunting and Shooting segment at Sportsman's Warehouse Holdings, Inc.

Camping

Expected Growth: 4.83%

Strong demand for outdoor recreation, increasing popularity of camping as a leisure activity, and strategic partnerships with outdoor enthusiast groups drive Camping segment growth for Sportsman's Warehouse Holdings, Inc. Additionally, the company's focus on providing high-quality camping gear and expert advice to customers contributes to the 4.83% growth rate.

Fishing

Expected Growth: 4.83%

Fishing segment growth of 4.83% driven by increasing demand for outdoor recreational activities, expansion of private label products, and strategic partnerships with popular fishing brands. Additionally, Sportsman's Warehouse Holdings, Inc.'s omnichannel approach and improved e-commerce platform contribute to the growth, as well as the company's focus on providing expert advice and services to customers.

Apparel

Expected Growth: 4.83%

Strong demand for outdoor apparel, increasing popularity of athleisure wear, and effective marketing strategies by Sportsman's Warehouse Holdings, Inc. have driven the 4.83% growth in the apparel segment. Additionally, the company's focus on providing high-quality products and expanding its e-commerce platform have contributed to the segment's growth.

Footwear

Expected Growth: 4.65%

Strong demand for outdoor activities, increasing popularity of athleisure wear, and effective marketing strategies by Sportsman's Warehouse Holdings, Inc. have driven the 4.65% growth in footwear sales. Additionally, the company's focus on providing high-quality products and expanding its e-commerce platform have contributed to the segment's growth.

Optics, Electronics, Accessories and Other

Expected Growth: 4.5%

Optics: Increased demand for rifle scopes and binoculars driven by hunting and outdoor recreation trends. Electronics: Growth in fish finders and GPS devices due to advancements in technology and rising popularity of fishing. Accessories: Rising sales of camping gear and apparel driven by increased outdoor activities. Other: Expansion of private label offerings and e-commerce platform contributing to growth.

7. Detailed Products

Firearms

A wide selection of firearms for hunting, sport shooting, and personal defense

Ammunition

A variety of ammunition for handguns, rifles, and shotguns

Fishing Gear

Fishing rods, reels, lures, and other fishing equipment

Camping Gear

Tents, sleeping bags, backpacks, and other camping equipment

Clothing and Footwear

Outdoor apparel and footwear for men, women, and children

Optics

Binoculars, riflescopes, and other optical instruments

Outdoor Cooking

Camping stoves, cooking gear, and outdoor cooking accessories

8. Sportsman's Warehouse Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Sportsman's Warehouse Holdings, Inc. faces moderate threat from substitutes, as customers can opt for online retailers or specialty stores for outdoor gear and apparel.

Bargaining Power Of Customers

Sportsman's Warehouse Holdings, Inc. has a diverse customer base, reducing the bargaining power of individual customers. Additionally, the company's loyalty program and rewards help to retain customers.

Bargaining Power Of Suppliers

Sportsman's Warehouse Holdings, Inc. relies on a diverse supplier base, which reduces the bargaining power of individual suppliers. However, key suppliers may still exert some influence on pricing and terms.

Threat Of New Entrants

The outdoor gear and apparel market has high barriers to entry, including significant capital requirements and established relationships with suppliers. This reduces the threat of new entrants for Sportsman's Warehouse Holdings, Inc.

Intensity Of Rivalry

The outdoor gear and apparel market is highly competitive, with several established players competing for market share. Sportsman's Warehouse Holdings, Inc. faces intense rivalry from companies like Cabela's, Bass Pro Shops, and REI.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 65.22%
Debt Cost 3.95%
Equity Weight 34.78%
Equity Cost 7.71%
WACC 5.26%
Leverage 187.52%

11. Quality Control: Sportsman's Warehouse Holdings, Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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A-Score: 3.0/10

Value: 8.1

Growth: 3.6

Quality: 2.9

Yield: 0.0

Momentum: 2.5

Volatility: 1.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.42$

Current Price

1.42$

Potential

-0.00%

Expected Cash-Flows