SPORTSMAN'S WAREHOUSE HOLDINGS, INC.

Previous wording

Recent changes in international trade policy and the implementation of increased tariff rates have caused substantial uncertainty with respect to our inventory cost. If some of the proposed and current changes to international trade and tariff policy are implemented or continue for a significant length of time, we will experience a material increase in our inventory costs, especially in our Hunting and Shooting and Optics, Electronics, Accessories and Other departments. We cannot predict the ultimate impact of such changes on our financial results for the remainder of fiscal year 2025 and beyond since such policies remain highly dynamic and evolving. In the first quarter of fiscal year 2025, we purchased additional inventory in anticipation of increased tariff rates and we expect to purchase additional strategic inventory in the second quarter of fiscal year 2025 in anticipation of further tariff rate increases to be prepared for the hunting and holiday seasons. We will continue to consider other means to mitigate the impact of increased tariff rates, including by seeking alternative sourcing of our products and by negotiating with our suppliers to absorb a portion of increased costs due to changes in tariff rates and trade policy; however, we cannot provide any assurances that we will be successful in such efforts.

Current wording

Recent changes in international trade policy and the implementation of increased tariff rates have caused substantial uncertainty with respect to our inventory cost. If some of the proposed and current changes to international trade and tariff policy are implemented or continue for a significant length of time, we will experience a material increase in our inventory costs, especially in our Hunting and Shooting and Optics, Electronics, Accessories and Other departments. We cannot predict the ultimate impact of such changes on our financial results for the remainder of fiscal year 2025 and beyond since such policies remain highly dynamic and evolving. In the first half of fiscal year 2025, we purchased additional inventory in anticipation of increased tariff rates to be prepared for the hunting and holiday seasons. We will continue to consider other means to mitigate the impact of increased tariff rates, including by seeking alternative sourcing of our products and by negotiating with our suppliers to absorb a portion of increased costs due to changes in tariff rates and trade policy; however, we cannot provide any assurances that we will be successful in such efforts.

Previous wording

For instance, in November 2022, Oregon passed a ballot measure that amended Oregon law to prohibit private citizens from manufacturing, importing, possessing, using, purchasing, selling or transferring a magazine capable of holding (or being readily converted to hold) over ten rounds of ammunition. Additionally, this ballot measure also imposed complex permitting and training requirements for the purchase and sale of firearms. On December 6, 2022, a state Circuit Court judge in Oregon preliminarily enjoined the implementation of the ballot measure. On November 21, 2023, the Circuit Court judge permanently enjoined implementation of the ballot measure upon a determination that the ballot measure was facially unconstitutional under Oregon's state constitution. On March 12, 2025, the Oregon Court of Appeals reversed the state Circuit Court judge's permanent injunction, holding that the ballot measure was in fact facially constitutional under Oregon's state constitution. The Oregon Court of Appeals ordered the Circuit Court judge to enter a declaratory judgment consistent with the Court of Appeals’ decision. On April 14, 2025, the plaintiffs filed a petition for review before the Oregon Supreme Court.

Current wording

For instance, in November 2022, Oregon passed a ballot measure that amended Oregon law to prohibit private citizens from manufacturing, importing, possessing, using, purchasing, selling or transferring a magazine capable of holding (or being readily converted to hold) over ten rounds of ammunition. Additionally, this ballot measure also imposed complex permitting and training requirements for the purchase and sale of firearms. On December 6, 2022, a state Circuit Court judge in Oregon preliminarily enjoined the implementation of the ballot measure. On November 21, 2023, the Circuit Court judge permanently enjoined implementation of the ballot measure upon a determination that the ballot measure was facially unconstitutional under Oregon's state constitution. On March 12, 2025, the Oregon Court of Appeals reversed the state Circuit Court judge's permanent injunction, holding that the ballot measure was in fact facially constitutional under Oregon's state constitution. The Oregon Court of Appeals ordered the Circuit Court judge to enter a declaratory judgment consistent with the Court of Appeals’ decision.

Previous wording

We believe the injunction of the Oregon ballot measure remains temporarily in effect pending a determination on the plaintiff’s petition for review before the Oregon Supreme Court. There is also a pending bill in the Oregon House (HB 3075) that seeks to delay and modify the implementation of the ballot measure’s permitting requirement and establish certain exemptions. This ballot measure is also being challenged in a related case in federal court that is presently on appeal before the U.S. Court of Appeals for the Ninth Circuit. However, due to a recent ruling upholding a similar magazine capacity restriction case in California (Virginia Duncan, et al. v. Rob Bonta, No. 23-55805 (9th Cir. 2023)), we believe it is unlikely that the ballot measure will be struck down by the U.S. Court of Appeals for the Ninth Circuit.

Current wording

We are aware that this ballot measure is also being challenged in a related case in federal court that is presently on appeal before the U.S. Court of Appeals for the Ninth Circuit. However, due to a ruling upholding a similar magazine capacity restriction case in California (Duncan, et al. v. Bonta, No. 23-55805 (9th Cir. 2023)), we believe it is unlikely that the Oregon ballot measure will be struck down by the U.S. Court of Appeals for the Ninth Circuit.

Previous wording

While we believe the injunction of the Oregon ballot measure remains in effect until the Oregon Supreme Court decides on the plaintiff’s petition for review, the ballot measure could still be found constitutional and implemented in its current form. We currently operate eight stores in the State of Oregon. If the ballot measure is allowed to take effect, whether because the Oregon Supreme Court denies the petition for review or ultimately upholds the Oregon Court of Appeals March 12, 2025 order, sales of firearms in Oregon may be halted or substantially diminished unless all permitting and training programs are fully developed by the state and/or law enforcement agencies at the time the ballot measure takes effect. If delays in establishing such permitting and training programs occur, it could result in a substantial decline in our sales of firearms and related products and reduce traffic to our stores in Oregon, which would significantly impact on our sales and gross margin.

Current wording

We currently operate eight stores in the State of Oregon. If the Oregon Supreme Court upholds the Oregon Court of Appeals March 12, 2025 order and the ballot measure is allowed to take effect on or after March 15, 2026 , sales of firearms in Oregon may be halted or substantially diminished unless all permitting and training programs are fully developed by the state and/or law enforcement agencies at the time the ballot measure takes effect. If delays in establishing such permitting and training programs occur, it could result in a substantial decline in our sales of firearms and related products and reduce traffic to our stores in Oregon, which would significantly impact on our sales and gross margin. It is still unclear what measures the State of Oregon has undertaken thus far to set up the permitting and training infrastructure called for in the ballot measure.

Previous wording

build strong community connections and be the local choice for hunting and fishing solutions;

Current wording

building strong community connections and be the local choice for hunting and fishing solutions;

Previous wording

During fiscal year 2024 and continuing into the first quarter of fiscal year 2025, elevated inflation has adversely impacted our gross margins. In fiscal year 2025, we anticipate modest improvements in our gross margins, driven by continued careful management of variable expenses. However, during the first quarter of fiscal year 2025, these improvements were negatively impacted by our decision to pull forward inventory purchases in anticipation of increased tariffs.

Current wording

During fiscal year 2024 and continuing into the first half of fiscal year 2025, elevated inflation has adversely impacted our gross margins. In fiscal year 2025, we anticipate modest improvements in our gross margins, driven by continued careful management of variable expenses. However, during the first half of fiscal year 2025, these improvements have been partially offset by our decision to pull forward inventory purchases in anticipation of increased tariffs.

Previous wording

We define Adjusted EBITDA as net loss plus interest expense, income tax benefit, depreciation and amortization, stock-based compensation expense, transition and severance costs related to director and officer transitions, and expenses that we do not believe are indicative of our ongoing expenses. We define Adjusted EBITDA margin as Adjusted EBITDA divided by net sales. In evaluating our business, we use Adjusted EBITDA and Adjusted

Current wording

We define Adjusted EBITDA as net loss plus interest expense, income tax benefit, depreciation and amortization, stock-based compensation expense, transition and severance costs related to director and officer transitions, and expenses that we do not believe are indicative of our ongoing expenses. We define Adjusted EBITDA margin as Adjusted EBITDA divided by net sales. In evaluating our business, we use Adjusted EBITDA and Adjusted EBITDA margin as additional measurement tools for purposes of business decision-making, including evaluating store performance, developing budgets and managing expenditures. See “—Non-GAAP Financial Measures.”

Previous wording

Net Sales and Same Store Sales. Net sales increased by $4.9 million, or 2.0%, to $249.1 million during the 13 weeks ended May 3, 2025 compared to $244.2 million in the corresponding period of fiscal year 2024. Our net sales increased primarily due to increased sales in our Fishing and Hunting and Shooting departments as we continue to emphasize inventory in-stocks to ensure we have the right inventory at the right location at the right time.

Current wording

Net Sales and Same Store Sales. Net sales increased by $5.2 million, or 1.8%, to $293.9 million during the 13 weeks ended August 2, 2025 compared to $288.7 million in the corresponding period of fiscal year 2024. Our net sales increased primarily due to increased sales in our Fishing and Hunting and Shooting departments as we continue to emphasize inventory in-stocks to ensure we have the right inventory at the right location at the right time. E-commerce driven sales comprised more than 19% of total sales for the 13 weeks ended August 2, 2025 and increased by approximately 3% compared to the corresponding period in fiscal year 2024. Same store sales increased by 2.1% during the 13 weeks ended August 2, 2025 compared to the corresponding 13-week period of fiscal year 2024, primarily as a result of our inventory management and digital marketing efforts.

Previous wording

Our Fishing, Hunting and Shooting, Apparel and Footwear departments saw net sales increases of $3.0 million, $2.4 million, $0.8 million and $0.2 million, respectively, during the 13 weeks ended May 3, 2025 compared to the corresponding period of fiscal year 2024 primarily driven by increased unit sales due to our continued emphasis on maintaining sufficient inventory in-stocks of core items. Our Camping and Optics, Electronics, Accessories and Other departments saw net sales decreases of $1.3 million and $0.2 million, respectively, during the 13 weeks ended May 3, 2025 compared to the corresponding period of fiscal year 2024. We believe these decreases reflected the impact of broader macroeconomic conditions discussed above. We also believe our Camping department was impacted by the later spring and the timing of the Easter holiday. Within our Hunting and Shooting department, our ammunition category saw an increase of $0.5 million or 1.3% and our firearm category saw a decrease of $0.1 million or 0.1% during the 13 weeks ended May 3, 2025 compared to the corresponding period of fiscal year 2024. The increase in the ammunition category was primarily due to our efforts to ensure every day low pricing in key ammunition groups. The decrease in our firearms category was primarily driven by a shift in consumer behavior to lower cost firearms, however, we continued to consistently outpace the adjusted NICS background check data and gain market share within the firearm space.

Current wording

Our Hunting and Shooting and Fishing departments saw net sales increases of $5.5 million and $5.3 million, respectively, during the 13 weeks ended August 2, 2025 compared to the corresponding period of fiscal year 2024 primarily driven by increased unit sales due to our continued emphasis on maintaining sufficient inventory in-stocks of core items. Our Camping, Footwear, Apparel and Optics, Electronics, Accessories and Other departments saw net sales decreases of $4.7 million, $0.4 million, $0.4 million and $0.2 million, respectively, during the 13 weeks ended August 2, 2025 compared to the corresponding period of fiscal year 2024. We believe these decreases reflected the impact of broader macroeconomic conditions discussed above. Within our Hunting and Shooting department, our ammunition category saw an increase of $3.6 million or 10.0%, while our firearm category remained relatively flat during the 13 weeks ended August 2, 2025 compared to the corresponding period of fiscal year 2024. The increase in the ammunition category was primarily due to our efforts to ensure every day low pricing in key ammunition groups and improved in-stocks on core products. The leveling in our firearms category was primarily driven by a shift in consumer behavior to lower cost firearms, offset by increased unit sales. We continue to consistently outpace the adjusted NICS background check data, gaining market share within the firearm space.

Previous wording

With respect to same store sales, during the 13 weeks ended May 3, 2025, our Fishing, Apparel, Hunting and Shooting and Footwear departments saw increases of 11.0%, 5.6%, 1.5% and 1.4%, respectively, compared to the corresponding period of fiscal year 2024. Our Camping and Optics, Electronics, Accessories and Other departments saw same store sales decreases of 5.8% and 1.3%, respectively, during the 13 weeks ended May 3, 2025 compared to the corresponding period of fiscal year 2024. These changes were primarily driven by the items noted above for net sales. As of May 3, 2025, 146 stores were included in our same store sales calculation.

Current wording

With respect to same store sales, during the 13 weeks ended August 2, 2025, our Fishing, Hunting and Shooting and Optics, Electronics, Accessories and Other departments saw increases of 10.9%, 4.0% and 2.7%, respectively, compared to the corresponding period of fiscal year 2024. Our Camping, Footwear and Apparel departments saw same store sales decreases of 9.8%, 2.1% and 1.9%, respectively, during the 13 weeks ended August 2, 2025 compared to the corresponding period of fiscal year 2024. These changes were primarily driven by the items noted above for net sales. As of August 2, 2025, 146 stores were included in our same store sales calculation.

Previous wording

Income Taxes. We recognized income tax benefit of $1.3 million during the 13 weeks ended May 3, 2025 compared to an income tax benefit of $5.5 million during the corresponding period of fiscal year 2024. Our effective tax rates during the 13 weeks ended May 3, 2025 and May 4, 2024 were 5.9% and 23.2%, respectively. Our effective tax rate will generally differ from the U.S. Federal statutory rate of 21.0%, due to state taxes, permanent items, and discrete items relating to stock award deductions.

Current wording

Income Taxes. We recognized income tax expense of $0.1 million during the 13 weeks ended August 2, 2025 compared to an income tax benefit of $2.1 million during the corresponding period of fiscal year 2024. Our effective tax rates during the 13 weeks ended August 2, 2025 and August 3, 2024 were -1.4% and 25.8%, respectively. Our effective tax rate will generally differ from the U.S. Federal statutory rate of 21.0%, due to state taxes, permanent items, and discrete items relating to stock award deductions.

Previous wording

E-commerce driven sales comprised more than 20% of total sales for the 13 weeks ended May 3, 2025 and increased by approximately 8% compared to the corresponding period in fiscal year 2024. Same store sales increased by 2.0% during the 13 weeks ended May 3, 2025 compared to the corresponding 13-week period of fiscal year 2024, primarily as a result of our inventory management efforts.

Current wording

Net Sales and Same Store Sales. Net sales increased by $10 million, or 1.9%, to $543 million during the 26 weeks ended August 2, 2025 compared to $533 million in the corresponding period of fiscal year 2024. Our net sales increased primarily due to increased sales in our Fishing and Hunting and Shooting departments as we continue to emphasize inventory in-stocks to ensure we have the right inventory at the right location at the right time. E-commerce driven sales comprised more than 19% of total sales for the 26 weeks ended August 2, 2025 and increased by approximately 4% compared to the corresponding period in fiscal year 2024. Same store sales increased by 2.0% during the 26 weeks ended August 2, 2025 compared to the corresponding 26-week period of fiscal year 2024, primarily as a result of our inventory management efforts and new digital marketing strategy.

Previous wording

Gross Profit. Gross profit increased by $1.9 million, or 2.5%, to $75.6 million during the 13 weeks ended May 3, 2025 compared to $73.8 million for the corresponding period of fiscal year 2024. As a percentage of net sales, gross profit increased to 30.4% during the 13 weeks ended May 3, 2025, compared to 30.2% for the corresponding period of fiscal year 2024, primarily driven by favorable mix and rate improvements in our fishing business, which carries a higher gross margin rate profile. This gain was partially offset by increased freight expense tied to our strategic inventory pull-forward in anticipation of higher tariffs and changes to international trade policy.

Current wording

Gross Profit. Gross profit increased by $5.8 million, or 3.5%, to $169.6 million during the 26 weeks ended August 2, 2025 compared to $163.8 million for the corresponding period of fiscal year 2024. As a percentage of net sales, gross profit increased to 31.2% during the 26 weeks ended August 2, 2025, compared to 30.7% for the corresponding period of fiscal year 2024, primarily driven by favorable mix and rate improvements from our fishing business, which carries a higher gross margin rate profile and rate improvements in our camping business. This gain was partially offset by increased freight expense tied to our strategic inventory pull-forward in anticipation of higher tariffs and changes to international trade policy.

Previous wording

Selling, General, and Administrative Expenses. Selling, general, and administrative expenses increased by $0.8 million, or 0.9%, to $95.3 million during the 13 weeks ended May 3, 2025, compared to $94.4 million for the corresponding period of fiscal year 2024. This increase was primarily the result of increased payroll and rent expenses of $2.4 million and $0.5 million, respectively, during the 13 weeks ended May 3, 2025. These increases were partially offset by decreases of $1.2 million and $0.5 million in other operating and depreciation expenses, respectively. As a percentage of net sales, selling, general, and administrative expenses decreased to 38.2% of net sales in the first quarter of fiscal year 2025, compared to 38.6% of net sales in the first quarter of fiscal year 2024, reflecting ourcontinued focus on expense management and fixed cost leverage gained from higher sales.

Current wording

Selling, General, and Administrative Expenses. Selling, general, and administrative expenses increased by $3.7 million, or 1.9%, to $192.4 million during the 26 weeks ended August 2, 2025, compared to $188.8 million for the corresponding period of fiscal year 2024. This increase was primarily the result of increased payroll expense of $4.2 million during the 26 weeks ended August 2, 2025, reflecting our reinvestment into customer facing and sales driving areas of the business. This increase was partially offset by a decrease of $0.8 million and $0.5 million in depreciation and other operating expenses, respectively. As a percentage of net sales, selling, general, and administrative expenses remained flat at 35.4% of net sales in the 26 weeks ended August 2, 2025, compared to the 26 weeks ended August 3, 2024.

Previous wording

Interest Expense. Interest expense increased by $0.1 million, or 3.4%, to $3 million during the 13 weeks ended May 3, 2025, compared to $2.9 million for the corresponding period of fiscal year 2024. The increase in interest expense was primarily driven by increased amortization of outstanding deferred financing fees and discounts related to the term loan facility during the first quarter of fiscal year 2025 compared to the corresponding period of fiscal year 2024.

Current wording

Interest Expense. Interest expense increased by $0.6 million, or 9.8%, to $6.7 million during the 26 weeks ended August 2, 2025, compared to $6.1 million for the corresponding period of fiscal year 2024. The increase in interest expense was primarily driven by increased amortization of outstanding deferred financing fees and discounts related to the term loan facility during the 26 weeks ended August 2, 2025 compared to the corresponding period of fiscal year 2024.

Previous wording

As of May 3, 2025, we had cash and cash equivalents of $3.6 million and working capital, consisting of current assets less current liabilities, of $62.9 million. We also had $118.5 million available for borrowing under our senior secured revolving credit facility and our term loan facility as of May 3, 2025, calculated based upon certain borrowing base restrictions for each of the revolving credit facility and term loan facility.

Current wording

As of August 2, 2025, we had cash and cash equivalents of $1.8 million and working capital, consisting of current assets less current liabilities, of $75.5 million. We also had $107.7 million available for borrowing under our senior secured revolving credit facility as of August 2, 2025, calculated based upon borrowing base restrictions under our revolving credit facility.

Previous wording

Our primary cash requirements are for seasonal working capital needs and capital expenditures related to ongoing operational needs and new system investments. For both the short-term and the long-term, our primary sources of cash are borrowings under our senior secured revolving credit facility, our term loan facility and operating cash flows. We believe that our cash on hand, cash generated by operating activities and funds available under our revolving credit facility and term loan facility will be sufficient to finance our operating activities and meet our cash requirements for at least the next twelve months and beyond. With only one new store planned for fiscal year 2025, we intend to prioritize the repayment of outstanding debt with any excess cash flow.

Current wording

Our primary cash requirements are for seasonal working capital needs and capital expenditures related to ongoing operational needs and new system investments. For both the short-term and the long-term, our primary sources of cash are borrowings under our senior secured revolving credit facility and operating cash flows. We believe that our cash on hand, cash generated by operating activities and funds available under our revolving credit facility will be sufficient to finance our operating activities and meet our cash requirements for at least the next twelve months and beyond. With only one new store planned for fiscal year 2025, we intend to prioritize the repayment of outstanding debt with any excess cash flow.

Previous wording

Operating Lease Obligations. Operating lease commitments consist principally of leases for our retail stores, corporate office and distribution center. Our leases often include options which allow us to extend the terms beyond the initial lease term. As of May 3, 2025, our expected operating lease payments for the remainder of fiscal year 2025 and fiscal year 2026 are $55.9 million and $74.2 million, respectively. Our total committed operating lease payments are $465.2 million. Other operating lease obligations consist of distribution center equipment. See Note 6, “Leases” to our unaudited condensed consolidated financial statements included in this 10-Q.

Current wording

Operating Lease Obligations. Operating lease commitments consist principally of leases for our retail stores, corporate office and distribution center. Our leases often include options which allow us to extend the terms beyond the initial lease term. As of August 2, 2025, our expected operating lease payments for the remainder of fiscal year 2025 and fiscal year 2026 are $37.6 million and $75.4 million, respectively. Our total committed operating lease payments are $452.9 million. Other operating lease obligations consist of distribution center equipment. See Note 6, “Leases” to our unaudited condensed consolidated financial statements included in this 10-Q.

Previous wording

Capital Expenditures. During the 13 weeks ended May 3, 2025, we incurred approximately $3.8 million in capital expenditures primarily related to strategic technological investments and general store maintenance. We expect capital expenditures between $20 million and $25 million for fiscal year 2025 (inclusive of amounts spent during the 13 weeks ended May 3, 2025) primarily related to strategic technological investments, such as planogramming, merchandising and replenishment and store scheduling tools, and general store fleet maintenance. We intend to fund these capital expenditures with our operating cash flows, cash on hand and funds available under our revolving credit facility. Other investment opportunities, such as potential strategic acquisitions or store expansion rates in excess of those presently planned, may require additional funding.

Current wording

Capital Expenditures. During the 26 weeks ended August 2, 2025, we incurred approximately $11.2 million in capital expenditures primarily related to strategic technological investments and general store maintenance. We expect capital expenditures between $20 million and $25 million for fiscal year 2025 (inclusive of amounts spent during the 26 weeks ended August 2, 2025) primarily related to strategic technological investments, such as planogramming, merchandising and replenishment and store scheduling tools, and general store fleet maintenance. We intend to fund these capital expenditures with our operating cash flows, cash on hand and funds available under our revolving credit facility. Other investment opportunities, such as potential strategic acquisitions or store expansion rates in excess of those presently planned, may require additional funding.

Previous wording

Principal and Interest Payments. We maintain a $350.0 million revolving credit facility and a $45.0 million term loan facility. As of May 3, 2025, $155.5 million was outstanding under the revolving credit facility and $25.0 million was outstanding under the term loan facility. Assuming no additional repayments or borrowings on our revolving credit facility and our term loan facility after May 3, 2025, our interest payments would be approximately $8.9 million for the remainder of fiscal year 2025 and approximately $11.9 million for fiscal year 2026, in each case, based on the interest rate as of May 3, 2025. As of May 3, 2025, our weighted average interest rate on the amounts outstanding under our revolving credit facility and term loan facility was 6.59%. See below under “Indebtedness” for additional information regarding our revolving credit facility and term loan facility, including the interest rates applicable to any borrowing under such facilities.

Current wording

Principal and Interest Payments. We maintain a $350.0 million revolving credit facility and a $45.0 million term loan facility. As of August 2, 2025, $167.4 million was outstanding under the revolving credit facility and $45.0 million was outstanding under the term loan facility. Assuming no additional repayments or borrowings on our revolving credit facility after August 2, 2025, our interest payments would be approximately $7.2 million for the remainder of fiscal year 2025 and approximately $14.4 million for fiscal year 2026, in each case, based on the interest rate as of August 2, 2025. As of August 2, 2025, our weighted average interest rate on the amounts outstanding under our revolving credit facility and term loan facility was 6.77%. See below under “Indebtedness” for additional information regarding our revolving credit facility and term loan facility, including the interest rates applicable to any borrowing under such facilities.

Previous wording

Net cash used in operating activities was $60.2 million for the 13 weeks ended May 3, 2025, compared to net cash used in operating activities was $34.7 million for the corresponding period of fiscal year 2024, an increase of approximately $25.5 million. The increase in our cash flows used in operating activities was primarily driven by increased inventory purchases during the 13 weeks ended May 3, 2025 compared to the corresponding period of fiscal year 2024 done in an attempt to reduce our exposure to tariffs.

Current wording

Net cash used in operating activities was $86.8 million for the 26 weeks ended August 2, 2025, compared to net cash used in operating activities of $16.1 million for the corresponding period of fiscal year 2024, an increase of approximately $70.7 million. The increase in our cash flows used in operating activities was primarily driven by increased inventory purchases during the 26 weeks ended August 2, 2025 compared to the corresponding period of fiscal year 2024 done in an attempt to reduce our exposure to tariffs and ensure we have inventory on hand for hunting season and the holiday seasons.

Previous wording

Net cash used in investing activities was $3.8 million for the 13 weeks ended May 3, 2025, compared to net cash used in investing activities was $3.3 million for the corresponding period of fiscal year 2024, an increase of approximately $0.5 million, which was primarily driven by increased capital expenditures related to the construction of a new store and timing of technical investments during the 13 weeks ended May 3, 2025 compared to the corresponding period of fiscal year 2024.

Current wording

Net cash used in investing activities was $11.2 million for the 26 weeks ended August 2, 2025, compared to net cash used in investing activities of $7.6 million for the corresponding period of fiscal year 2024, an increase of approximately $3.6 million, which was primarily driven by increased capital expenditures related to the construction of a new store and timing of technical investments during the 26 weeks ended August 2, 2025 compared to the corresponding period of fiscal year 2024.

Previous wording

Net cash provided by financing activities was $64.8 million for the 13 weeks ended May 3, 2025, compared to net cash provided by financing activities was $37.0 million for the corresponding period of fiscal year 2024, an increase of approximately $27.8 million. The increase in cash provided by financing activities was primarily the result of increased incremental borrowings under our revolving credit facility.

Current wording

Net cash provided by financing activities was $96.9 million for the 26 weeks ended August 2, 2025, compared to net cash provided by financing activities of $23.2 million for the corresponding period of fiscal year 2024, an increase of approximately $73.7 million. The increase in cash provided by financing activities was primarily the result of our borrowing of $20.0 million under our delayed draw ABL term loan and incremental borrowings under our revolving credit facility.

Previous wording

We maintain a $350.0 million revolving credit facility, with $155.5 million outstanding as of May 3, 2025. Our revolving credit facility is governed by an amended and restated credit agreement with a consortium of banks led by Wells Fargo Bank, National Association (“Wells Fargo”). We additionally entered into a term loan credit facility on July 30, 2024 with an aggregate principal amount available of $45.0 million, with $25.0 million outstanding as of May 3, 2025. Borrowings under our revolving credit facility and term loan facility are subject to a borrowing base calculation. As of May 3, 2025, we had an aggregate amount of $118.5 million available for borrowing under our revolving credit facility and our term loan facility, calculated based upon certain borrowing base restrictions, and $2.3 million in stand-by commercial letters of credit. Our $20 million availability under our term loan was scheduled to expire on April 30, 2025 and we recently extended the expiration to July 31, 2025.

Current wording

We maintain a $350.0 million revolving credit facility, with $167.4 million outstanding as of August 2, 2025. Our revolving credit facility is governed by an amended and restated credit agreement with a consortium of banks led by Wells Fargo Bank, National Association (“Wells Fargo”). We additionally entered into a term loan credit facility on July 30, 2024 with $45.0 million outstanding as of August 2, 2025. Borrowings under our revolving credit facility are subject to a borrowing base calculation. As of August 2, 2025, we had an aggregate amount of $107.7 million available for borrowing under our revolving credit facility, calculated based upon certain borrowing base restrictions, and $2.7 million in stand-by commercial letters of credit.

Previous wording

Our revolving credit facility and term loan facility each require us to maintain a minimum availability at all times of not less than 10% of the gross borrowing base. In addition, the credit agreements governing each of our revolving credit facility and our term loan facility contain customary affirmative and negative covenants, including covenants that limit our ability to incur, create or assume certain indebtedness, to create, incur or assume certain liens, to make certain investments, to make sales, transfers and dispositions of certain property and to undergo certain fundamental changes, including certain mergers, liquidations and consolidations. The revolving credit facility and term loan facility also contain customary events of default, including defaults triggered by defaults under the other facility. As of May 3, 2025, we were in compliance with all covenants under the credit agreements governing each of our revolving credit facility and our term loan facility.

Current wording

Our revolving credit facility and term loan facility each require us to maintain a minimum availability at all times of not less than the greater of $30.0 million and 10% of the gross borrowing base. In addition, the credit agreements governing each of our revolving credit facility and our term loan facility contain customary affirmative and negative covenants, including covenants that limit our ability to incur, create or assume certain indebtedness, to create, incur or assume certain liens, to make certain investments, to make sales, transfers and dispositions of certain property and to undergo certain fundamental changes, including certain mergers, liquidations and consolidations. The revolving credit facility and term loan facility also contain customary events of default, including defaults triggered by defaults under the other facility. As of August 2, 2025, we were in compliance with all covenants under the credit agreements governing each of our revolving credit facility and our term loan facility.

Previous wording

Stock-based compensation expense represents non-cash expenses related to equity instruments granted to employees under our equity incentive plan and employee stock purchase plan.

Current wording

Represents non-cash expenses related to equity instruments granted to employees under our equity incentive plan and employee stock purchase plan.

Previous wording

Expenses incurred relating to the departure of directors and officers and the recruitment of directors and key members of our senior management team.

Current wording

Represents expenses incurred relating to the departure of directors and officers and the recruitment of directors and key members of our senior management team.