SPORTSMAN'S WAREHOUSE HOLDINGS, INC.

Previous wording

We believe the key drivers to improving our gross margin are increasing the product mix to higher margin products, particularly apparel and footwear, increasing foot traffic within our stores and traffic to our website, improving buying opportunities with our vendor partners and coordinating pricing strategies among our stores and our merchandise group. Our ability to properly manage our inventory can also impact our gross margin. We focus our buying on core items, high-turning products and seasonally relevant merchandise, particularly in ammunition, fishing, camping and personal protection, as these are areas where customer demand is more predictable and where having products in stock matters most to our customers. Successful inventory management ensures we have sufficient high margin products in stock to meet customer demand, while overstocking of items can lead to markdowns in order to help a product sell. This is especially true with respect to our more in demand inventory, with approximately 20% of our products accounting for approximately 80% of our net sales. Despite our decision to pull forward inventory purchases, we anticipate ending fiscal year 2025 with lower total inventory than fiscal year 2024.

Current wording

We believe the key drivers to improving our gross margin are increasing the product mix to higher margin products, particularly fishing, increasing foot traffic within our stores and traffic to our website, improving buying opportunities with our vendor partners and coordinating pricing strategies among our stores and our merchandise group. Our ability to properly manage our inventory can also impact our gross margin. We focus our buying on core items, high-turning products and seasonally relevant merchandise, particularly in ammunition, fishing, camping and personal protection, as these are areas where customer demand is more predictable and where having products in stock matters most to our customers. Successful inventory management ensures we have sufficient high margin products in stock to meet customer demand, while overstocking of items can lead to markdowns in order to help a product sell. This is especially true with respect to our more in demand inventory, with approximately 20% of our products accounting for approximately 80% of our net sales. Despite our decision to pull forward inventory purchases, we anticipate ending fiscal year 2025 with lower total inventory than fiscal year 2024.

Previous 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.

Current wording

During fiscal year 2024 and continuing into fiscal year 2025, elevated inflation has adversely impacted our gross margins. In the first three quarters of fiscal year 2025, we experienced modest improvements in our gross margin rates. These improvements were partially offset by our decision to pull forward inventory purchases in the first half of fiscal year 2025.

Previous wording

Gross margins may continue to be affected by the evolving implementation of these higher tariff rates. We believe that the overall growth of our business can also help improve our gross margins, because increased merchandise volumes will enable us to maintain our strong relationships with our vendors. If we see significant declines in sales or increases in overstocked inventory, we may experience a decline in gross margins as we use promotions to drive traffic and reduce inventory.

Current wording

Gross margins may continue to be affected by the evolving implementation of higher tariff rates. We believe that the overall growth of our business can also help improve our gross margins, because increased merchandise volumes will enable us to maintain our strong relationships with our vendors. If we see significant declines in sales or increases in overstocked inventory, we may experience a decline in gross margins as we use promotions to drive traffic and reduce inventory.

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 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.”

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

Previous 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.

Current wording

Net Sales and Same Store Sales. Net sales increased by $7.0 million, or 2.2%, to $331.3 million during the 13 weeks ended November 1, 2025 compared to $324.3 million in the corresponding period of fiscal year 2024. Our net sales increased primarily due to increased sales in our Hunting and Shooting, Fishing and Apparel departments as we continue to emphasize inventory in-stocks, and our focused strategy to win the seasons in hunting and fishing to ensure we have the right inventory at the right location at the right time. In addition, the sales growth was driven by our strategic decision to lean into personal protection, including less-lethal alternatives. E-commerce driven sales comprised approximately 19% of total sales for the 13 weeks ended November 1, 2025 and increased by more than 8% compared to the corresponding period in fiscal year 2024, led by our new digital-first marketing strategy. Same store sales increased by 2.2% during the 13 weeks ended November 1, 2025 compared to the corresponding 13-week period of fiscal year 2024, primarily as a result of our improved inventory management and digital marketing efforts.

Previous wording

Our Fishing, Hunting and Shooting and Apparel departments saw net sales increases of $8.2 million, $7.9 million and $0.4 million, respectively, during the 26 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, Optics, Electronics, Accessories and Other and Footwear departments saw net sales decreases of $6.0 million, $0.4 million and $0.2 million, respectively, during the 26 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 and firearm categories saw an increases of $4.1 million and a decrease of $0.1 million or an increase of 5.3% and a decrease of less than 0.1%, respectively, during the 26 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. While we saw a slight decrease in our firearm category, it remains relatively flat. The leveling in our firearms category was primarily driven by a shift in consumer behavior to lower cost firearms, however, we have seen increased unit sales and continue to consistently outpace the adjusted NICS background checks data, an indication that we are gaining market share within the firearms space.

Current wording

Our Hunting and Shooting, Fishing and Apparel departments saw net sales increases of $9.9 million, $3.7 million and $0.4 million, respectively, during the 13 weeks ended November 1, 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. Additionally, this growth was driven by our focused strategy to win the seasons in hunting and fishing to ensure we have the right inventory at the right location at the right time and by our strategic decision to lean into personal protection, including less-lethal alternatives. Our Camping, Optics, Electronics, Accessories and Other and Footwear departments saw net sales decreases of $3.2 million, $2.8 million and $1.0 million, respectively, during the 13 weeks ended November 1, 2025 compared to the corresponding period of fiscal year 2024. We believe these decreases reflect the impact of broader macroeconomic conditions effecting the economy and US consumer, which includes categories that are highly discretionary in nature. Within our Hunting and Shooting department, our firearm and ammunition categories saw increases of $2.9 million and $0.8 million or 4.3% and 1.6%, respectively, during the 13 weeks ended November 1, 2025 compared to the corresponding period of fiscal year 2024. The increase in these categories was primarily due to our efforts to ensure every day low pricing in key product groups within these categories, our bulk unit ammunition strategy, and improved in-stocks on core products. Within our ammunition and firearm categories, certain subcategories experienced unit sales declines on a year over year basis, primarily due to headwinds associated with the 2024 election cycle. We continue to consistently outpace the adjusted NICS background check data, achieving unit sales increases, suggesting market share gains within the firearm space.

Previous 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.

Current wording

With respect to same store sales, during the 13 weeks ended November 1, 2025, our Fishing, Hunting and Shooting and Apparel departments saw increases of 14.1%, 5.3% and 1.6%, respectively, compared to the corresponding period of fiscal year 2024. Our Optics, Electronics, Accessories and Other, Camping and Footwear departments saw same store sales decreases of 9.5%, 8.5% and 5.0%, respectively, during the 13 weeks ended November 1, 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 November 1, 2025, 146 stores were included in our same store sales calculation.

Previous wording

Gross Profit. Gross profit increased by $3.9 million, or 4.4%, to $93.9 million during the 13 weeks ended August 2, 2025 compared to $90 million for the corresponding period of fiscal year 2024. As a percentage of net sales, gross profit increased to 32.0% during the 13 weeks ended August 2, 2025, compared to 31.2% for the corresponding period of fiscal year 2024. The margin improvement was primarily driven by stronger product margins from healthier inventory and increased sales in the Fishing department. These gains were partially offset by a mix shift toward lower-margin firearms and ammunition, which have a lower gross margin, reduced camping sales, and higher freight costs from an intentional inventory pull-forward to be on-time and ready for the key late summer and fall hunting seasons.

Current wording

Gross Profit. Gross profit increased by $5.6 million, or 5.5%, to $108.7 million during the 13 weeks ended November 1, 2025 compared to $103.1 million for the corresponding period of fiscal year 2024. As a percentage of net sales, gross profit increased to 32.8% during the 13 weeks ended November 1, 2025, compared to 31.8% for the corresponding period of fiscal year 2024. The margin improvement was primarily driven by stronger product margins from healthier inventory, improved shrink, and increased sales in the Fishing department, which has an overall higher margin profile. These gains were partially offset by a sales mix shift toward lower-margin firearms and ammunition, which have a lower gross margin, and lower Camping department sales, which has a higher gross margin.

Previous wording

Selling, General, and Administrative Expenses. Selling, general, and administrative expenses increased by $2.8 million, or 3.0%, to $97.2 million during the 13 weeks ended August 2, 2025, compared to $94.3 million for the corresponding period of fiscal year 2024. This increase was primarily the result of increased payroll expense of $1.9 million during the 13 weeks ended August 2, 2025. As a percentage of net sales, selling, general, and administrative expenses increased to 33.1% of net sales in the second quarter of fiscal year 2025, compared to 32.7% of net sales in the second quarter of fiscal year 2024. The increase, as a percentage of net sales, was due to a reinvestment in customer-facing areas of the business, including store labor and digital marketing to grow sales and omni-channel traffic.

Current wording

Selling, General, and Administrative Expenses. Selling, general, and administrative expenses increased by $4.5 million, or 4.5%, to $104.5 million during the 13 weeks ended November 1, 2025, compared to $100.0 million for the corresponding period of fiscal year 2024. This increase was primarily the result of increased payroll expense of $1.5 million and a non-recurring expense of $3.0 million during the 13 weeks ended November 1, 2025. As a percentage of net sales, selling, general, and administrative expenses increased to 31.5% of net sales in the third quarter of fiscal year 2025, compared to 30.8% of net sales in the third quarter of fiscal year 2024. The increase, as a percentage of net sales, was due to a reinvestment in customer-facing areas of the business, including store and support area labor to grow sales and improve omni-channel traffic.

Previous wording

Interest Expense. Interest expense increased by $0.6 million, or 18.8%, to $3.8 million during the 13 weeks ended August 2, 2025, compared to $3.2 million for the corresponding period of fiscal year 2024. The increase in interest expense was primarily driven by increased borrowings under the revolving line of credit and term loan facilities during the second quarter of fiscal year 2025 compared to the corresponding period of fiscal year 2024.

Current wording

Interest Expense. Interest expense increased by $0.7 million, or 21.2%, to $4.1 million during the 13 weeks ended November 1, 2025, compared to $3.3 million for the corresponding period of fiscal year 2024. The increase in interest expense was primarily driven by increased borrowings under the revolving line of credit and term loan facilities during the third quarter of fiscal year 2025 compared to the corresponding period of fiscal year 2024.

Previous 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.

Current wording

Income Taxes. We recognized income tax expense of $0.2 million during the 13 weeks ended November 1, 2025 compared to an income tax expense of $0.2 million during the corresponding period of fiscal year 2024. Our effective tax rates during the 13 weeks ended November 1, 2025 and November 2, 2024 were 96.3% and -80.2%, 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.

Previous 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.

Current wording

Net Sales and Same Store Sales. Net sales increased by $17.1 million, or 2.0%, to $874.3 million during the 39 weeks ended November 1, 2025 compared to $857.2 million in the corresponding period of fiscal year 2024. Our net sales increased primarily due to increased sales in our Hunting and Shooting, Fishing and Apparel departments as we continue to emphasize inventory in-stocks, and our focused strategy to win the seasons in hunting and fishing to ensure we have the right inventory at the right location at the right time. In addition, the sales growth was driven by our strategic decision to lean into personal protection, including less-lethal alternatives. E-commerce driven sales comprised approximately 19% of total sales for the 39 weeks ended November 1, 2025 and increased by over 5% compared to the corresponding period in fiscal year 2024, led by our new digital-first marketing strategy. Same store sales increased by 2.1% during the 39 weeks ended November 1, 2025 compared to the corresponding 39-week period of fiscal year 2024, primarily as a result of our improved inventory management efforts and new digital marketing strategy.

Previous 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.

Current wording

Our Hunting and Shooting, Fishing and Apparel departments saw net sales increases of $17.8 million, $12.0 million and $0.8 million, respectively, during the 39 weeks ended November 1, 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. Additionally, this growth was driven by our focused strategy to win the seasons in hunting and fishing to ensure we have the right inventory at the right location at the right time and by our strategic decision to lean into personal protection, including less-lethal alternatives. Our Camping, Optics, Electronics, Accessories and Other and Footwear departments saw net sales decreases of $9.2 million, $3.2 million and $1.2 million, respectively, during the 39 weeks ended November 1, 2025 compared to the corresponding period of fiscal year 2024. We believe these decreases reflect the impact of broader macroeconomic conditions effecting the economy and US consumer, which includes categories that are highly discretionary in nature. Within our Hunting and Shooting department, our ammunition and firearm categories saw increases of $4.9 million and $2.9 million, or 3.9% and 1.4%, respectively, during the 39 weeks ended November 1, 2025 compared to the corresponding period of fiscal year 2024. The increase in these categories was primarily due to our efforts to ensure every day low pricing in key product groups within these categories, our bulk unit ammunition strategy, and improved in-stocks on core products. We continue to consistently outpace the adjusted NICS background check data, achieving unit sales increases, suggesting market share gains within the firearm space.

Previous wording

With respect to same store sales, during the 26 weeks ended August 2, 2025, our Fishing, Hunting and Shooting, Apparel and Optics, Electronics, Accessories and Other departments saw increases of 10.9%, 2.7%, 1.2% and 0.3%, respectively, compared to the corresponding period of fiscal year 2024. Our Camping and Footwear departments saw same store sales decreases of 8.5% and 0.7%, respectively, during the 26 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.

Current wording

With respect to same store sales, during the 39 weeks ended November 1, 2025, our Fishing, Hunting and Shooting and Apparel departments saw increases of 11.7%, 3.7% and 1.4%, respectively, compared to the corresponding period of fiscal year 2024. Our Camping, Optics, Electronics, Accessories and Other and Footwear departments saw same store sales decreases of 8.5%, 4.3% and 2.3%, respectively, during the 39 weeks ended November 1, 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 November 1, 2025, 146 stores were included in our same store sales calculation.

Previous 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.

Current wording

Gross Profit. Gross profit increased by $11.4 million, or 4.3%, to $278.3 million during the 39 weeks ended November 1, 2025 compared to $266.9 million for the corresponding period of fiscal year 2024. As a percentage of net sales, gross profit increased to 31.8% during the 39 weeks ended November 1, 2025, compared to 31.1% for the corresponding period of fiscal year 2024, primarily driven by stronger product margins from healthier inventory, improved shrink, and increased sales in the Fishing department, which has an overall higher margin profile. These gains were partially offset by a sales mix shift toward lower-margin firearms and ammunition, which have a lower gross margin, lower Camping department sales, which has a higher gross margin, and by increased freight expense tied to our strategic inventory pull-forward.

Previous 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.

Current wording

Selling, General, and Administrative Expenses. Selling, general, and administrative expenses increased by $8.1 million, or 2.8%, to $296.9 million during the 39 weeks ended November 1, 2025, compared to $288.7 million for the corresponding period of fiscal year 2024. This increase was primarily the result of increased payroll expense of $5.7 million and a non-recurring expense of $3.0 million during the 39 weeks ended November 1, 2025, reflecting our reinvestment into customer facing and sales driving areas of the business. This increase was partially offset by a decrease of $1.1 million in depreciation. As a percentage of net sales, selling, general, and administrative expenses increased to 34.0% of net sales in the 39 weeks ended November 1, 2025, compared to 33.7% of net sales during the 39 weeks ended November 2, 2024. The increase, as a percentage of net sales, was due to a reinvestment in customer-facing areas of the business, including store and support area labor to grow sales and omni-channel traffic.

Previous 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.

Current wording

Interest Expense. Interest expense increased by $1.3 million, or 13.8%, to $10.7 million during the 39 weeks ended November 1, 2025, compared to $9.4 million for the corresponding period of fiscal year 2024. The increase in interest expense was primarily driven by increased borrowings under the revolving line of credit and term loan facilities during the 39 weeks ended November 1, 2025 compared to the corresponding period of fiscal year 2024.

Previous wording

Income Taxes. We recognized income tax benefit of $1.2 million during the 26 weeks ended August 2, 2025 compared to an income tax benefit of $7.5 million during the corresponding period of fiscal year 2024. Our effective tax rates during the 26 weeks ended August 2, 2025 and August 3, 2024 were 4.2% and 23.9%, 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 benefit of $1.0 million during the 39 weeks ended November 1, 2025 compared to an income tax benefit of $7.4 million during the corresponding period of fiscal year 2024. Our effective tax rates during the 39 weeks ended November 1, 2025 and November 2, 2024 were 3.5% 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.

Previous 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.

Current wording

As of November 1, 2025, we had cash and cash equivalents of $2.2 million and working capital, consisting of current assets less current liabilities, of $75.5 million. We also had $109.7 million available for borrowing under our senior secured revolving credit facility as of November 1, 2025, calculated based upon borrowing base restrictions under our revolving credit facility.

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 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.

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 November 1, 2025, our expected operating lease payments for the remainder of fiscal year 2025 and fiscal year 2026 are $18.9 million and $75.4 million, respectively. Our total committed operating lease payments are $434.3 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 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.

Current wording

Capital Expenditures. During the 39 weeks ended November 1, 2025, we incurred approximately $18.7 million in capital expenditures primarily related to strategic technological investments and general store maintenance. We expect capital expenditures to be less than $25 million for fiscal year 2025 (inclusive of amounts spent during the 39 weeks ended November 1, 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 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.

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 November 1, 2025, $153.3 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 November 1, 2025, our interest payments would be approximately $3.3 million for the remainder of fiscal year 2025 and approximately $13.2 million for fiscal year 2026, in each case, based on the interest rate as of November 1, 2025. As of November 1, 2025, our weighted average interest rate on the amounts outstanding under our revolving credit facility and term loan facility was 6.68%. 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 $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.

Current wording

Net cash used in operating activities was $70.5 million for the 39 weeks ended November 1, 2025, compared to net cash used in operating activities of $18.7 million for the corresponding period of fiscal year 2024, an increase of approximately $51.8 million. The increase in our cash flows used in operating activities was primarily driven by the timing of inventory purchases and the resulting payments related to accounts payable during the 39 weeks ended November 1, 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 $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.

Current wording

Net cash used in investing activities was $18.7 million for the 39 weeks ended November 1, 2025, compared to net cash used in investing activities of $11.3 million for the corresponding period of fiscal year 2024, an increase of approximately $7.4 million, which was primarily driven by increased capital expenditures related to the construction of a new store and timing of technical investments during the 39 weeks ended November 1, 2025 compared to the corresponding period of fiscal year 2024.

Previous 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.

Current wording

Net cash provided by financing activities was $88.6 million for the 39 weeks ended November 1, 2025, compared to net cash provided by financing activities of $29.4 million for the corresponding period of fiscal year 2024, an increase of approximately $59.2 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 $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.

Current wording

We maintain a $350.0 million revolving credit facility, with $153.3 million outstanding as of November 1, 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 November 1, 2025. Borrowings under our revolving credit facility are subject to a borrowing base calculation. As of November 1, 2025, we had an aggregate amount of $109.7 million available for borrowing under our revolving credit facility, calculated based upon certain borrowing base restrictions, and $2.6 million in stand-by commercial letters of credit.

Previous wording

In evaluating our business, we use Adjusted EBITDA and Adjusted EBITDA margin as supplemental measures of our operating performance. 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. Net loss is the most comparable GAAP financial measure to Adjusted EBITDA. We define Adjusted EBITDA margin as, for any period, the Adjusted EBITDA for that period divided by the net sales for that period. We consider Adjusted EBITDA and Adjusted EBITDA margin important supplemental measures of our operating performance and believe they are frequently used by analysts, investors and other interested parties in the evaluation of companies in our industry. Other companies in our industry, however, may calculate Adjusted EBITDA and Adjusted EBITDA margin differently than we do. Management also uses 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. Management believes Adjusted EBITDA and Adjusted EBITDA margin allow investors to evaluate our operating performance and compare our results of operations from period to period on a consistent basis by excluding items that management does not believe are indicative of our core operating performance.

Current wording

In evaluating our business, we use Adjusted EBITDA and Adjusted EBITDA margin as supplemental measures of our operating performance. We define Adjusted EBITDA as net income (loss) plus interest expense, income tax expense (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. Net income (loss) is the most comparable GAAP financial measure to Adjusted EBITDA. We define Adjusted EBITDA margin as, for any period, the Adjusted EBITDA for that period divided by the net sales for that period. We consider Adjusted EBITDA and Adjusted EBITDA margin important supplemental measures of our operating performance and believe they are frequently used by analysts, investors and other interested parties in the evaluation of companies in our industry. Other companies in our industry, however, may calculate Adjusted EBITDA and Adjusted EBITDA margin differently than we do. Management also uses 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. Management believes Adjusted EBITDA and Adjusted EBITDA margin allow investors to evaluate our operating performance and compare our results of operations from period to period on a consistent basis by excluding items that management does not believe are indicative of our core operating performance.

Previous wording

A reconciliation of net loss, to Adjusted EBITDA and a calculation of Adjusted EBITDA margin is set forth below for the periods presented (amounts in thousands):

Current wording

A reconciliation of net income (loss) to Adjusted EBITDA and a calculation of Adjusted EBITDA margin is set forth below for the periods presented: