Net Sales: $295.6 million in Q2, a 0.6% increase from $293.9 million in the same period last year.
Same-Store Sales: Essentially flat versus last year, with 6.7% growth in the hunting and shooting sports department.
Gross Margin: 32.5%, a 50 basis point improvement compared to 32% in Q2 last year.
SG&A Expenses: $97.1 million or 32.9% of net sales, down from $97.2 million or 33.1% in Q2 last year.
Net Loss: $4.4 million or negative $0.11 per diluted share, compared with a net loss of $7.1 million or negative $0.18 per diluted share in the prior year.
Adjusted Net Loss: $3.1 million or negative $0.08 per diluted share, compared with an adjusted net loss of $4.7 million or negative $0.12 per diluted share in Q2 last year.
Adjusted EBITDA: $8.7 million, compared with $8.3 million in the second quarter of 2025.
Inventory: $399 million at the end of Q2, down $44.5 million or 10% versus Q2 of last year.
Net Debt: $169 million, a decrease of $26 million compared to Q2 of last year.
Department Sales: Hunting and shooting sports sales increased nearly 7%, while fishing department sales decreased about 2% in Q2.
E-commerce Sales: Grew nearly 3% in the quarter, led by Fishing up 10% and Hunting up 6%.
Store Count: 147 stores across the fleet.
Full Year 2026 Guidance: Net sales expected to range between down 1% to up 2%, adjusted EBITDA between $30 million and $36 million, and capital expenditures between $20 million and $25 million.
Release Date: September 01, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
Same-store sales were essentially flat in Q2, in line with expectations, despite macroeconomic headwinds.
Hunting and shooting sports department sales grew nearly 7%, driven by strong demand in firearms and ammunition.
Total inventory decreased by $44.5 million year-over-year, improving efficiency and balance sheet strength.
Gross margin improved by 50 basis points to 32.5%, aided by disciplined inventory management and reduced freight costs.
E-commerce sales grew nearly 3%, outpacing total sales for the ninth consecutive quarter, with over 70% of online orders picked up in stores.
Negative Points
Core customer remains pressured by elevated fuel prices, impacting discretionary spending.
Fishing department sales declined 2% due to drought conditions in key Western states.
Camping and soft lines departments experienced sales declines, though trends improved in August.
Promotional cadence was more aggressive than planned to reinforce value proposition, potentially impacting margins.
Consumer headwinds are expected to persist, with no immediate relief from high fuel costs.
Q & A Highlights
Q : Can you provide more detail on the performance of the hunting and shooting sports department, and how it compares to industry trends? A : Paul Stone (CEO): Firearms and ammunition were extremely strong, with firearms up 8% and ammunition up nearly 11% in Q2. We are looking at this on a two-year stack basis, as last year we had the benefit of launching personal protection programs and selling down aged inventory. On a two-year basis, the consistency of the category looks very good, and we are confident in our position.
Q : How are you thinking about the promotional environment, and do you expect the heavier promotional cadence to persist in the back half of the year? A : Jennifer Fall Jung (CFO): Yes, we expect the promotional environment to remain competitive for the remainder of the year. Since we cannot predict fuel prices, which are a major pressure point for our core customer, we have built our plan around the expectation that we will need to continue offering value to drive sales.
Q : Can you elaborate on the consumer behavior changes you are seeing in response to elevated gas prices? A : Jennifer Fall Jung (CFO): We are seeing high penetration in consumables like lures and ammunition, as customers continue to spend on their core pursuits. We are also seeing some trade-down in categories like rods and reels to more basic models. Overall, our average order value is up, and customers are not giving up spending on firearms and ammunition, but they are being more selective with other discretionary purchases.
Q : What gives you confidence in the second-half outlook for the camping and apparel categories, which have been declining? A : Paul Stone (CEO): We are encouraged by improved August trends. This is the first time we have been able to be clean in-season on these products, allowing newness to flow through. We have the right curated assortments, like hunting tents and dehydrated food for camping, and we are seeing a huge improvement in camp and apparel. We expect camping to recover first in Q3, with apparel following in Q4.
Q : Can you quantify the tariff refund benefit in the quarter and where it was reinvested? A : Jennifer Fall Jung (CFO): The tariff refund was not significant for us, as only 3% of our assortment is private label. We strategically decided to use the refund to offer more value to our consumer in a very value-oriented environment, particularly in categories where we saw pressure, rather than letting it flow entirely to the bottom line.
Q : What is your level of confidence in reducing inventory levels by the end of the fiscal year, and what are the working capital benefits? A : Jennifer Fall Jung (CFO): We have extreme high confidence. We review inventory frequently and have plans lined up that match our promotional cadence. We are in a much better position than last year and feel very confident we will end the year with inventory below last year's levels. Paul Stone (CEO) added that the team has successfully reduced inventory by 10% year-over-year while still delivering a flat sales comp, and the savings are being reinvested into core SKUs to improve in-stocks.
Q : Are there any changes to your store closure plans? A : Jennifer Fall Jung (CFO): No major changes. We have one store confirmed to close on January 31. We expect to reach an agreement to close a second store by the end of January, though it might push into 2027. A third store is less certain, but we are making traction on negotiations for all other locations.
Q : Can you discuss the gross margin trends within the hunting category and the opportunity for expansion? A : Jennifer Fall Jung (CFO): We see opportunity in firearms and ammunition. While bulk ammunition can pressure the margin rate, it drives more margin dollars. Our focus is on attachment categories and bundling initiatives to drive overall category margin. Paul Stone (CEO) added that there is a large opportunity to grow ammunition sales, which carries a greater margin than firearms, and they are implementing strategies to improve the margin mix.
Q : How are you leveraging the e-commerce business, specifically with store pickups, to drive additional sales? A : Jennifer Fall Jung (CFO): Over 70% of online orders are picked up in-store, which drives traffic. For firearm purchases, customers must go to the back of the store, which exposes them to the rest of the merchandise. The biggest opportunity is improving the e-commerce site experience, search functionality, and navigation to increase basket size and attachment rates when customers come in to pick up their orders.
Q : Are you expecting the camping and apparel categories to turn positive within the current fiscal year? A : Paul Stone (CEO): Yes, our expectation is to get these categories to flattish to positive based on our current run rate. We are coming off inventory being down 11% and 14% in these categories, and now we are finally able to buy toward newness for the holiday and fall seasons. We are extremely confident compared to where we have been, and we also expect to see margin improvements from the mix in the back half of the year.