Sportsman's Warehouse Cuts FY25 EBITDA Guidance to $22M-$26M
Previous view was flat to up 3.5%. Cuts FY25 adjusted EBITDA view to $22M-$26M from $33M-$45M. The company said the EBITDA guidance reflects a tough fourth quarter environment due to a challenged U.S. consumer. The company expects capital expenditures for 2025 to be less than $25M, primarily related to strategic technological investments, such as planogramming, merchandising and replenishment and store scheduling tools, and general store fleet maintenance. Additionally, the company anticipates to end the year with less than $330M in inventory and lower debt, reflecting working capital efficiency. "During the third quarter, we remained focused on strengthening our balance sheet and improving working capital efficiency in a challenging operating environment," said Jennifer Fall Jung, CFO of Sportsman's Warehouse. "We reduced total inventory by $14.2 million year-over-year and by $19.5 million sequentially, while ensuring our stores were appropriately positioned for the fall hunting, fishing, and holiday selling seasons. Our inventory strategy continues to prioritize core, seasonally relevant, and higher-turning products, and we remain committed to reducing overall inventory levels as we drive improved efficiency in our operating model. We also remain focused on enhancing liquidity, paying down $13.2 million in debt during the quarter and generating positive momentum toward year-end free cash flow. Given ongoing macroeconomic pressures, external disruptions since mid-October weighing on sales, and a highly promotional retail environment, we are adjusting our full year guidance. While visibility remains limited, we believe our continued focus on inventory discipline, cost control, and positive free cash flow generation positions us to navigate near-term challenges while working toward more sustainable profitability over time."
