Sportsman's Warehouse (SPWH) Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Fri, December 5, 2025 astatine 9:26 AM CST 24 min read

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Thursday, December 4, 2025 astatine 5 p.m. ET

• Chief Executive Officer — Paul Stone

• Chief Financial Officer — Jennifer Fall Jung

• Chief Administrative Officer — Riley Timmer

Paul Stone: Thank you, Riley, and bully afternoon, everyone. Before we begin, I privation to admit our squad of dedicated outfitters crossed the country. Each day, they present connected our committedness of large cogwheel and exceptional service, and their committedness continues to assistance thrust our momentum. Turning present to our 3rd 4th results. I'm encouraged by the coagulated advancement our squad continues to marque arsenic we execute against our translation strategy. Despite a pugnacious user situation and the interaction of a prolonged authorities shutdown, we delivered our 3rd consecutive 4th of affirmative same-store income growth. Same-store income grew 2.2% versus past year, with broad-based spot successful our halfway categories of hunting and shooting sports arsenic good arsenic fishing.

Our firearms concern erstwhile again outperformed adjusted NIC checks, extending our marketplace stock gains for yet different quarter. While adjusting premix checks declined, our workplace portion income increased, contempt the election-driven headwinds from Q3 past year, underscoring the continued absorption and improvements connected a curated assortment with extent successful cardinal products, beardown in-stocks, and seasonal readiness with inventory, our enhanced selling efforts, and our Outfitter-led in-store experience. In ammunition, income request remained strong, increasing astir 2% successful Q3. Our EDLP strategy connected halfway calibers, complemented by healthier in-stocks and bulk ammo strategy, continues to resonate with customers.

With mean portion retail up successful the debased azygous digits, we are seeing sustained engagement from customers arsenic we thin successful further to thrust the areas of our business. Looking present astatine our cardinal categories. We drove meaningful maturation crossed respective strategically important departments. Hunting and shooting sports accrued 5%, supported by beardown inventory levels with applicable section assortments heading into our highest autumn season. Fishing delivered exceptional maturation of 14%, reflecting wide information successful the class and beardown execution from our teams. Apparel grew astir 1% with peculiar spot successful method outdoor deterioration that supports our solution selling approach. Camping, however, remained challenged. Sales declined versus past year, reflecting the highly discretionary quality of this category.

This is simply a class wherever we proceed to refine and curate this assortment to complement the pursuits that thrust customers into our stores. In fact, inventory successful this class was down much than sales, highlighting greater ratio with our inventory and investments successful our cardinal income and traffic-driving categories. E-commerce was different agleam spot, delivering maturation of 8% successful the quarter. Both ship-to-home and bargain online pickup in-store performed well, with BOPUS continuing to thrust postulation and amended conversion successful our stores. Our digital-first selling efforts are supporting higher engagement and lawsuit acquisition crossed each channels. The improvements we're seeing crossed the concern stay tied to the strategical priorities guiding our transformation. Inventory precision.