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Sportsman's Warehouse (SPWH)
NASDAQ:SPWH
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Sportsman's Warehouse
(NASDAQ:SPWH)
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Rating:43Neutral
Price Target:
$1.50
▲(8.70% Upside)
The overall stock score reflects significant financial challenges, including high leverage and negative cash flows, compounded by bearish technical indicators. While the earnings call provided some positive insights into sales growth and strategic initiatives, the company's valuation remains unattractive due to a negative P/E ratio. The recent board appointment is a positive step but does not outweigh the broader financial and market challenges.
Positive Factors
Same-Store Sales Growth
Consistent same-store sales growth indicates strong customer retention and effective sales strategies, which can drive long-term revenue stability.
E-commerce Expansion
Growth in e-commerce reflects the company's adaptation to digital trends, enhancing its market reach and diversifying revenue streams.
Board Appointment
The addition of an experienced board member can strengthen strategic direction and governance, potentially improving operational efficiency.
Negative Factors
High Leverage
High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth opportunities.
Negative Cash Flows
Negative cash flows indicate potential liquidity issues, which can hinder the company's ability to sustain operations and invest in growth.
Increased SG&A Expenses
Rising SG&A expenses can pressure margins, reducing profitability and limiting resources available for strategic initiatives.
Sportsman's Warehouse (SPWH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$53.87M
Dividend YieldN/A
Average Volume (3M)702.10K
Price to Earnings (P/E)―
Beta (1Y)0.16
Revenue Growth-1.05%
EPS Growth-10.28%
CountryUS
Employees2,050
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.08
Shares Outstanding38,481,094
10 Day Avg. Volume313,405
30 Day Avg. Volume702,101
Financial Highlights & Ratios
PEG Ratio-0.18
Price to Book (P/B)0.33
Price to Sales (P/S)0.06
P/FCF Ratio3.94
Enterprise Value/Market Cap12.94
Enterprise Value/Revenue0.58
Enterprise Value/Gross Profit1.85
Enterprise Value/Ebitda29.72
Forecast
1Y Price Target
$2.95Price Target Upside113.77% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)-0.4
Revenue Forecast (FY)$1.22B
Sportsman's Warehouse Business Overview & Revenue Model
Company DescriptionSportsman'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.
How the Company Makes MoneyThe company generates revenue primarily through the sale of outdoor sporting goods, including firearms, fishing equipment, and camping gear. Its revenue model includes both in-store sales and e-commerce transactions, allowing it to reach a broader audience. Key revenue streams consist of product sales, with a focus on high-margin items such as apparel and specialized equipment. Additionally, Sportsman's Warehouse may benefit from partnerships with manufacturers for exclusive product lines, promotional events, and loyalty programs that encourage repeat purchases. Seasonal promotions and sales events also play a crucial role in driving revenue, particularly during peak outdoor activity seasons.
Sportsman's Warehouse Key Performance Indicators (KPIs)
Sportsman's Warehouse Earnings Call Summary
Earnings Call Date:Dec 04, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Apr 01, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted positive same-store sales growth and segment successes, particularly in hunting, shooting sports, and fishing. The company's strategic initiatives in e-commerce and inventory management showed promising results. However, the company faced challenges due to a tough consumer environment, increased SG&A expenses, and a revised full-year guidance reflecting macroeconomic pressures.Q3-2025 Updates
Positive Updates
Positive Same-Store Sales Growth
The company achieved its third consecutive quarter of positive same-store sales growth, with a 2.2% increase year-over-year.
Segment Growth in Key Categories
Hunting and shooting sports increased by 5%, and fishing delivered exceptional growth of 14%. Apparel grew by 1%.
E-commerce and Digital Marketing Success
E-commerce grew by 8% in the quarter, with a successful digital-first marketing strategy increasing engagement and customer acquisition.
Debt Reduction and Inventory Management
The company paid down $13.2 million of debt and reduced inventory by $20 million from Q2 to Q3.
Improved Gross Margin
Gross margin improved by 100 basis points to 32.8% compared to Q3 last year.
Negative Updates
Challenging Market Conditions
A slowdown in sales trends was noted starting mid-October due to a prolonged government shutdown and a tough consumer environment.
Decreased Sales in Camping Category
Camping sales declined, reflecting the highly discretionary nature of this category, with inventory down more than sales.
Increased SG&A Expenses
SG&A expenses increased to 31.5% of net sales, driven by investments in customer-facing areas and digital marketing.
Revised Full-Year Guidance
The company adjusted its full-year guidance due to macroeconomic headwinds, increased promotions, and lower than anticipated Q4 sales.
Company Guidance
During the third quarter of 2025, Sportsman's Warehouse Holdings, Inc. reported a 2.2% increase in same-store sales, marking their third consecutive quarter of growth. Net sales reached $331.3 million, also up 2.2% year-over-year. The company achieved a gross margin of 32.8%, a 100 basis point improvement from the previous year, driven by better product margins and reduced freight expenses. SG&A expenses rose to $104.5 million, or 31.5% of net sales. Adjusted EBITDA increased by 13% to $18.6 million. Total inventory decreased by 3.2% year-over-year to $424 million. Despite macroeconomic headwinds and a challenging Q4 outlook, the company remains optimistic about finishing the year with lower inventory levels and positive free cash flow, with adjusted EBITDA expected to range between $22 million and $26 million. The company's focus remains on strategic initiatives, including inventory efficiency and disciplined cost management, to drive modest growth and improved profitability into 2026.Sportsman's Warehouse Financial Statement Overview
Summary
Sportsman's Warehouse is facing significant financial challenges, including declining revenue and profitability, high leverage, and negative cash flows. Despite maintaining a stable gross profit margin, the company's financial health is weakened by operational inefficiencies and increased reliance on debt.Income Statement
Sportsman's Warehouse has experienced a significant decline in revenue over the past few years, with a TTM revenue growth rate of 0.43% following several periods of negative growth. The gross profit margin remains relatively stable at around 31%, but the net profit margin has turned negative, indicating profitability challenges. The EBIT and EBITDA margins have also deteriorated, reflecting operational inefficiencies.Balance Sheet
The company's balance sheet shows increasing leverage, with a TTM debt-to-equity ratio of 2.75, up from 1.34 in 2023. This high leverage poses a risk, especially with negative return on equity (ROE) of -16.57%, indicating that the company is not generating sufficient returns on its equity base. The equity ratio has decreased, suggesting a higher reliance on debt financing.Cash Flow
Cash flow analysis reveals a concerning trend, with negative operating and free cash flows in the TTM period. However, the free cash flow to net income ratio is positive at 1.49, suggesting some ability to cover net losses with free cash flow. The operating cash flow to net income ratio is negative, highlighting cash flow challenges.| 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 | 550.61M | 455.27M | 481.74M | 393.45M | 343.20M | 277.75M |
| 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
Negative
1.38
Price Trends
1.86
Negative
2.37
Negative
2.47
Negative
Market Momentum
-0.14
Negative
32.49
Neutral
39.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPWH, the sentiment is Negative. The current price of 1.38 is below the 20-day moving average (MA) of 1.44, below the 50-day MA of 1.86, and below the 200-day MA of 2.47, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 32.49 is Neutral, neither overbought nor oversold. The STOCH value of 39.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $3.79B | 10.40 | 18.34% | 1.04% | -0.65% | -10.35% | |
73 Outperform | $591.47M | 11.54 | 79.76% | 8.47% | -7.03% | 1.04% | |
71 Outperform | $18.90B | 17.42 | 23.79% | 2.33% | 10.86% | -11.63% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
51 Neutral | $273.77M | -1.26 | -67.22% | ― | -8.07% | -2206.16% | |
49 Neutral | $275.50M | -1.40 | ― | ― | 1.38% | 63.65% | |
43 Neutral | $53.87M | -1.42 | -16.36% | ― | -1.05% | -10.28% |
* Consumer Cyclical Sector Average
SPWH
Sportsman's Warehouse
1.38
-0.81
-36.99%
FLWS
1-800 Flowers
4.35
-2.81
-39.25%
DKS
Dick's Sporting Goods
216.66
-7.88
-3.51%
BNED
Barnes & Noble Education
8.32
-1.62
-16.30%
BWMX
Betterware de Mexico
16.19
6.39
65.20%
ASO
Academy Sports and Outdoors
56.93
-0.16
-0.28%
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.