Sportsman's Warehouse (SPWH) AI Stock Analysis

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Sportsman's Warehouse

(NASDAQ:SPWH)

Rating:52Neutral

Price Target:

$3.50

▲(19.86% Upside)

Sportsman's Warehouse's overall stock score is primarily impacted by its financial performance challenges, including declining revenue and profitability, and high leverage. While technical indicators show some positive momentum, and the earnings call and corporate events provide a cautiously optimistic outlook, the financial challenges weigh heavily on the overall score.

Sportsman's Warehouse (SPWH) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$121.83M

Dividend YieldN/A

Average Volume (3M)445.00K

Price to Earnings (P/E)―

Beta (1Y)0.02

Revenue Growth-2.92%

EPS Growth-8.22%

CountryUS

Employees2,050

SectorConsumer Cyclical

Sector Strength81

IndustrySpecialty Retail

Share Statistics

EPS (TTM)-0.12

Shares Outstanding38,431,080

10 Day Avg. Volume576,383

30 Day Avg. Volume445,001

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap5.72

Enterprise Value/Revenue0.58

Enterprise Value/Gross Profit1.85

Enterprise Value/Ebitda29.72

Forecast

1Y Price Target

$3.81

Price Target Upside30.48% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering4

Sportsman's Warehouse Business Overview & Revenue Model

Company DescriptionSportsman's Warehouse (SPWH) is a leading retailer specializing in outdoor sporting goods and equipment, primarily catering to enthusiasts of hunting, fishing, camping, and other outdoor recreational activities. Founded in 1986, the company operates a chain of retail stores across the United States, offering a wide range of products including firearms, ammunition, fishing gear, camping supplies, and apparel. Sportsman's Warehouse is dedicated to providing quality products and exceptional customer service to outdoor enthusiasts of all skill levels.

How the Company Makes MoneySportsman's Warehouse generates revenue primarily through the sale of outdoor sporting goods and equipment in its retail stores and online platform. The company's key revenue streams include sales of firearms, fishing tackle, camping gear, and outdoor clothing. Additionally, Sportsman's Warehouse benefits from seasonal sales spikes related to hunting and fishing seasons, which drive increased demand for specific products. The company also engages in promotions and loyalty programs that encourage repeat purchases. Partnerships with various outdoor brands and manufacturers allow Sportsman's Warehouse to offer exclusive products and promotions, further enhancing its market position and revenue potential.

Sportsman's Warehouse Earnings Call Summary

Earnings Call Date:Sep 04, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Dec 03, 2025

Earnings Call Sentiment Positive

The earnings call presented a positive outlook driven by consecutive quarters of sales growth, strong performance in key categories like hunting and fishing, and improved gross margins. However, challenges remain with the camping department's underperformance, increased net losses, and a strategic but significant increase in inventory levels. Despite these challenges, strategic initiatives and category growth provide a positive outlook.

Q2-2025 Updates

Positive Updates

Consecutive Quarter of Comp Store Sales Growth

Achieved a 2.1% increase in same-store sales compared to the previous year, marking the second consecutive quarter of growth.

Strong Performance in Key Categories

Hunting and shooting sports department grew by 4%, while fishing increased by 10.9% compared to last year.

Ammunition Sales Growth

Ammunition sales increased by 10% in the quarter, with average unit retail up in low single digits.

E-commerce Expansion

E-commerce sales grew by 3% over last year, with over 70% of online transactions fulfilled through the buy online pick up in store (BOPUS) program.

Improved Gross Margin

Gross margin for the quarter was 32%, an 80 basis point improvement compared to Q2 last year.

Positive Adjusted EBITDA

Adjusted EBITDA for the second quarter improved to $8.3 million, compared to $7.4 million in the second quarter of last year, a 20 basis point improvement as a percentage of net sales.

Negative Updates

Disappointing Camping Sales

Camping department sales were down 10% compared to last year due to the elimination of slow-moving categories.

Net Loss Increase

Net loss for the quarter was $7.1 million, compared to a net loss of $5.9 million in the second quarter of last year.

Inventory Increase

Total inventory at the end of Q2 was $443.5 million, compared to $363.4 million in the same period last year, due to a strategic decision to ensure readiness for the fall hunting season.

Lower Average Unit Retail in Firearms

Average unit retail for firearms declined by 4%, despite an increase in unit sales.

Company Guidance

During the Sportsman's Warehouse Holdings, Inc. Q2 2025 earnings call, the company provided guidance reflecting a strategic focus on key growth areas despite ongoing macroeconomic challenges. They achieved a 2.1% increase in same-store sales and reported net sales of $393.9 million, up 1.8% from the previous year. The company experienced a gross margin improvement of 80 basis points to 32% despite a 40 basis point drag from increased freight expenses. Adjusted EBITDA rose to $8.3 million, a 20 basis point improvement as a percentage of net sales. Looking ahead, they raised the lower end of their full-year net sales outlook to reflect flat growth and maintained the top end at a 3.5% increase, with adjusted EBITDA guidance between $33 million and $45 million. The focus remains on profitable sales growth, margin improvement, and efficient inventory management, anticipating ending the year with lower total inventory and generating positive free cash flow.

Sportsman's Warehouse Financial Statement Overview

Summary

Sportsman's Warehouse faces significant financial challenges across all verticals. Declining revenues and profitability, high leverage, and negative cash flows highlight operational and financial inefficiencies. The company must address these issues to improve financial health and ensure long-term sustainability.

Income Statement

Neutral

The income statement shows declining revenue and profitability. The TTM data indicates a negative EBIT and net income, with a gross profit margin of 30.96% and a net profit margin of -3.01%. Revenue has decreased compared to previous years, indicating challenges in maintaining sales growth. The negative EBIT and net profit margins highlight operational inefficiencies and profitability issues.

Balance Sheet

Neutral

The balance sheet reveals a high debt-to-equity ratio of 2.46, indicating significant leverage. The equity ratio stands at 23.13%, suggesting moderate reliance on equity financing. Return on equity is negative due to net losses, reflecting poor returns for shareholders. The company's financial stability is at risk due to high debt levels and declining equity.

Cash Flow

Negative

The cash flow statement shows negative free cash flow growth, with a TTM free cash flow of -$6.49 million. The operating cash flow to net income ratio is -0.24, indicating cash flow challenges. The free cash flow to net income ratio is also negative, reflecting insufficient cash generation to cover net losses. Cash flow management needs improvement to support operations and reduce financial strain.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.21B	1.20B	1.29B	1.40B	1.51B	1.45B
Gross Profit	376.25M	370.47M	383.41M	460.24M	490.30M	476.45M
EBITDA	23.45M	21.65M	13.67M	89.84M	203.38M	172.10M
Net Income	-37.42M	-33.06M	-29.00M	40.52M	108.47M	91.38M
Balance Sheet
Total Assets	948.85M	852.10M	886.21M	858.96M	840.58M	660.82M
Cash, Cash Equivalents and Short-Term Investments	1.80M	2.83M	3.14M	2.39M	57.02M	65.53M
Total Debt	506.76M	477.20M	481.74M	393.45M	343.20M	264.31M
Total Liabilities	739.97M	616.40M	621.65M	565.85M	526.41M	456.16M
Stockholders Equity	208.89M	235.70M	264.56M	293.11M	314.17M	204.66M
Cash Flow
Free Cash Flow	-54.57M	19.59M	-27.63M	-16.72M	-75.08M	219.06M
Operating Cash Flow	-36.52M	34.15M	52.27M	46.79M	-21.63M	238.82M
Investing Cash Flow	-18.02M	-14.48M	-79.89M	-60.59M	-53.45M	-26.23M
Financing Cash Flow	53.78M	-19.98M	28.38M	-40.84M	66.57M	-148.75M

Sportsman's Warehouse Technical Analysis

Technical Analysis Sentiment

Positive

Last Price2.92

Price Trends

50DMA

3.25

Negative

100DMA

2.81

Positive

200DMA

2.33

Positive

Market Momentum

MACD

-0.06

Negative

RSI

49.02

Neutral

STOCH

61.17

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPWH, the sentiment is Positive. The current price of 2.92 is above the 20-day moving average (MA) of 2.87, below the 50-day MA of 3.25, and above the 200-day MA of 2.33, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 49.02 is Neutral, neither overbought nor oversold. The STOCH value of 61.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SPWH.

Sportsman's Warehouse Risk Analysis

Sportsman's Warehouse disclosed 31 risk factors in its most recent earnings report. Sportsman's Warehouse reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Sportsman's Warehouse Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DKS	82 Outperform	$17.93B	15.62	37.37%	2.10%	2.70%	4.58%
LQDT	74 Outperform	$842.15M	31.88	14.00%	―	38.40%	32.42%
ASO	72 Outperform	$3.39B	9.53	18.42%	0.98%	-2.20%	-17.95%
Sector *	61 Neutral	$17.80B	12.85	-0.74%	3.03%	1.37%	-14.40%
ETSY	59 Neutral	$5.77B	44.80	-39.97%	―	2.38%	-38.88%
SPWH	52 Neutral	$121.83M	―	-16.56%	―	-2.92%	-8.22%
BGFV	49 Neutral	$32.77M	―	-51.44%	3.55%	-8.04%	-263.28%

* Consumer Cyclical Sector Average

Performance Comparison

SPWH

Sportsman's Warehouse

2.92

0.27

10.19%

BGFV

Big 5 Sporting Goods

1.42

-0.45

-24.06%

DKS

Dick's Sporting Goods

227.07

21.07

10.23%

LQDT

Liquidity Services

27.06

4.84

21.78%

ETSY

Etsy

57.82

6.08

11.75%

ASO

Academy Sports and Outdoors

48.21

-7.18

-12.96%

Sportsman's Warehouse Corporate Events

Executive/Board ChangesBusiness Operations and Strategy

Sportsman’s Warehouse Appoints New Chief Financial Officer

Positive

Aug 5, 2025

On August 4, 2025, Sportsman’s Warehouse announced the appointment of Jennifer Fall Jung as the new Chief Financial Officer and Secretary, effective August 18, 2025. She succeeds Jeff White, who will transition to a consulting role until September 9, 2025. Ms. Fall Jung brings over 25 years of experience in the consumer goods industry, having held significant financial roles at companies like The Duckhorn Portfolio, Funko, Inc., and The Gap, Inc. Her leadership is expected to be instrumental in executing the company’s long-term financial and strategic plans. The transition is part of the company’s ongoing efforts to strengthen its leadership team and enhance its market position.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 06, 2025