SPWH Confirms Positive Same Store Sales Growth and Improved Balance Sheet on Preliminary 2025 Results
First Year of Positive Same Store Sales Growth Since 2020
Sportsman's Warehouse Holdings, Inc. (NASDAQ: SPWH) released its preliminary fourth quarter and full fiscal year 2025 financial results, marking the company’s first positive same store sales growth since 2020. Management credits this early achievement to strong performance in the hunting and shooting sports category as well as the successful execution of a three-year turnaround plan begun in 2024. SPWH reported preliminary net sales of approximately $334.9 million for Q4 and $1,209.2 million for the fiscal year, both representing a 1% improvement over the prior period.
Efficient Inventory and Debt Management Strengthen Liquidity
Management highlights significant progress in improving the company’s balance sheet. Inventory was reduced by 8.5% year over year to $312.9 million, and net debt decreased by 6.1% to approximately $90 million. Total liquidity stands strong at $107.8 million, thanks in part to estimated free cash flow of $7.6 million for the year. These measures suggest better operational discipline and a more flexible position for future initiatives.
| Metric | Q4 2025 (Prelim.) | FY 2025 (Prelim.) | Change vs. Prior Year |
|---|---|---|---|
| Net Sales | $334.90M | $1,209.20M | +1.00% |
| Same Store Sales | $333.60M | $1,205.60M | +1.00% |
| Adjusted EBITDA | $9.60M | $27.50M | N/A |
| Inventory | $312.90M (end of period) | -8.50% | |
| Net Debt | $90.00M | -6.10% | |
| Total Liquidity | $107.80M | N/A | |
| Free Cash Flow | $7.60M | N/A | |
Turnaround Strategy Drives Operational Gains Amid Store Review
The turnaround plan’s traction is also visible in operational decisions. The company identified five underperforming stores for potential closure, anticipating an impairment charge yet clarifying that this will not affect 2025 net sales or Adjusted EBITDA. If these closures occur, the stores are expected to contribute a loss of approximately $1.5 million in Adjusted EBITDA for the fiscal year. These steps underline a continued focus on profitable growth going into 2026.
CEO Highlights Market Share Gains and Outlook for 2026
CEO Paul Stone emphasized that the company outperformed industry background check data in the hunting and shooting category, suggesting market share growth within the firearms segment. Management also noted that sales momentum carried into January and February, reinforcing confidence in their turnaround strategy and growth prospects for 2026.
Key Takeaway: Strong Foundation for Future Growth
With positive sales trends, disciplined expense and inventory management, and substantial liquidity, Sportsman’s Warehouse enters 2026 in a more robust operational position. Investors should watch for the full Q4 and FY 2025 financial release on March 31, 2026, for further details on impairment charges and the turnaround’s ongoing progress.
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