Sportsman's Warehouse reported its second straight quarter of same-store sales growth and improved inventory positioning. CEO Paul Stone pointed to targeted merchandising and localized marketing as key drivers, particularly in Alaska and the fishing and hunting categories. However, margin headwinds and category mix weighed on profitability, with Stone noting, “attachment remains strong as average order value continues to be at all-time highs,” even as average unit retail in firearms declined.

Is now the time to buy SPWH? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Sportsman's Warehouse’s Q2 Earnings Call

• Anna Glaessgen (B. Riley Securities) asked about the durability of comp sales growth as inventory benefits fade. CEO Paul Stone explained that the focus on hunting, fishing, and personal protection categories, along with ongoing inventory refinement, should support continued momentum.
• Matt Koranda (ROTH Capital Partners) inquired about the potential for further increases in average order value (AOV) through accessory attachment strategies. Stone responded that there is still significant opportunity, particularly by investing in inventory for top-performing items and enhancing basket size.
• Ryan Sigdahl (Craig Hallum Capital Markets) questioned whether growth in non-lethal products like TASER and Burna is drawing in new customers or simply shifting existing traffic. Stone indicated the company is attracting new customer segments and expects further upside as additional stores expand these offerings.
• Justin Kleber (Baird) asked about transaction trends and the impact of tariffs on pricing. CFO Jennifer Paul Young highlighted that both average order value and units per transaction (UPT) are up, and pricing flexibility from MAP policies helps manage tariff-related cost increases.
• Mark Smith (Lake Street) probed the margin dynamics in hunting and firearms, and the potential for increased demand in suppressors given regulatory changes. Stone confirmed margin pressure in the category and sees a “huge opportunity” in new product areas like suppressors and short-barrel rifles.

Catalysts in Upcoming Quarters

In the coming quarters, our analysts will be monitoring (1) the effectiveness of inventory sell-through and ability to end the year with lower stock levels, (2) the impact of new personal protection products and expanded omnichannel initiatives on customer traffic and sales, and (3) how well the company manages margin pressures from tariffs and a shifting product mix. Execution on working capital discipline and growth in underpenetrated markets will also be key markers of strategic progress.

Sportsman's Warehouse currently trades at $2.90, down from $2.99 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).

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