Sportsman's Warehouse Holdings, Inc.

answered and you'd like to move yourself from the queue, simply press star 11 again. As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Riley Tremor, Vice President, Investor Relations. Please go ahead, sir.

Thank you, Operator. Participating on our Q2 call today is Paul Stone, our Chief Executive Officer, and Jennifer Fall Young, our Chief Financial Officer. I will now remind everyone of the company's Safe Harbor language. The statements we make today contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which includes statements regarding expectations about our future results of operations, demand for our products, and growth of our industry. Actual results may differ materially from those suggested in such statements due to a number of risks and uncertainties, including those described in the company's most recent Form 10-K, and on the company's other filings made with the SEC. We will also disclose non-GAAP financial measures during today's call. Definitions of such non-GAAP measures as well as reconciliations to the most directly comparable GAAP financial measures are provided as supplemental financial information in our press release included as Exhibit 99-1 to the Form 8-K we furnished with the SEC today which is also available on the investor relations section of our website at sportsmans.com. I will now turn the call over to Paul.

Thank you, Riley, and good afternoon, everyone. Before we begin, I want to recognize our team of dedicated outfitters across the country. Each and every day, they deliver on our promise of great gear and exceptional service. I'd also like to welcome our Chief Financial Officer, Jennifer Fall Young, who brings more than two decades of experience across both large scale and specialty retail. She's a proven financial leader and I look forward to partnering with her to further accelerate the transformation of our business. Turning now to our second quarter results. I'm encouraged by the strong progress our team continues to make as we advance our transformation strategy in the second quarter. Despite ongoing consumer microeconomic headwinds, we delivered our second consecutive quarter of comp store sales growth. Same store sales were up 2.1% compared to last year, with positive comps achieved each month of the quarter. Importantly, this growth came even as June faced a difficult comparison due to last year's pull forward of sales in California ahead of the new firearm and ammunition taxes that took effect on July 1st last year. Our efforts to localize merchandise assortments and geo-target our marketing is delivering strong early results. For example, in Alaska, sales in the second quarter grew by high single digits, reflecting how well these initiatives are resonating with customers. Aligning our merchandising and marketing to local outdoor pursuits and solution selling is proving to be a critical unlock, not only for driving growth, but also for improving inventory productivity and efficiency. Our firearms business once again outperformed the industry. While adjusted next checks declined 4.9% in the quarter, our unit sales increased more than 4% versus last year. Further evidence that we are capturing market share. Consistent with broader consumer trends, we did see some trade down behavior reflected in a 4% decline in average unit retail for firearms again this quarter. However, attachment remains strong as average order value continues to be all-time highs. In ammunition, our strategic shift to an everyday low-price model on core ammo calibers and improved in-stock continues to resonate strongly with our customers. Ammunition sales grew 10% in the quarter, with average unit retail up in low single digits. We are also sharpening and investing in our firearm-related merchandise assortment to drive higher basket attachment and greater overall customer value. Looking now at our key categories. Driving our comp increase in the quarter was our hunting and shooting sports and fishing departments. Hunt and shoot increased 4% in Q2, driven by firearms, ammo, and products related to personal protection. Fishing was up nearly 11% over last year and is up 20% on a two-year stack. This is a category with expanding market participation and clear opportunities for us to capture additional share. We are well-positioned with our late-season fishing inventory to sell down and end the season strong with clean inventory. We were disappointed with camping's performance this quarter, as sales were down 10% compared to last year. As part of our ongoing transformation, we made a deliberate decision late last year to eliminate certain slow-moving categories that were tying up working capital. But we have not yet seen the level of offsetting growth we anticipated in other areas of the department. To address this, we recently implemented an EDLP strategy on core consumables, similar to what has been effective in ammunition, and we are confident this will strengthen the business over time. Additionally, we invested in compelling new assortments, most notably with Yeti, and early results indicate that these additions are resonating with our customers. Our e-commerce business grew 3% over last year and continues to be a strength of our omnichannel retail strategy. Importantly, over 70% of online transactions were fulfilled through our buy online, pick up in store focus program, underscoring how e-comm drives significant traffic and sales into our brick and mortar location. At the same time, our shift to home business remains strong, reflecting our ability to capture consumer demand well beyond our physical store footprint. With these dual strengths, we are uniquely positioned to gain market share as e-commerce continues to outpace traditional retail channels. The improvements we're seeing across the business is directly tied to our strategic focus, which remains centered on our four key priorities. One, inventory precision. Inventory readiness for the critical fall hunting season was foundational in Q2. In prior years, we were often late to the season. This year, we are ahead. Our inventory is healthier, our in-stock levels are stronger, and we have depth in our core products. With Q2 representing our peak inventory build, we are now well positioned to sell through as we move into the key fall hunting and holiday season. Two, local relevance. We continue to strengthen our role as a trusted local destination. This quarter, we launched our partnership with the United States Concealed Carry Association, or USCCA, to provide in-store training and education. Their robust, market-specific programs are a natural complement to our localization strategy. In addition, We are expanding in-store events that leverage the expertise of our outfitters, further strengthening our role as a trusted resource, and deepening our connection to the communities we serve. Three, personal protection. This category continues to outpace our total company performance. We've expanded the number of stores that carry the Burnett product line, where we offer the customer a chance to try before you buy, leveraging our archery lanes and enclosed shooting pods. We also launched Taser, well-known, less lethal brand earlier this week in our top performing personal protection stores. We will continue to lean in this category as we establish Sportsman's Warehouse as the authority in personal protection. Four, brand awareness. As a differentiated omnichannel retailer, we are strengthening brand recognition and trust. Our new Adventure Like a Local campaign underscores the expertise and authenticity that set Sportsman's apart while our refined digital strategy is accelerating customer acquisition and positioning us for sustained long-term growth. Despite ongoing consumer microeconomic challenges, I remain confident in both our strategic plan and our team's ability to deliver against it. Our competitive advantage is clear. We out-local the big box retailers and out-assort the smaller specialty shops, providing customers with a differentiated combination of value, quality, breadth of selection, and personalized service rooted in the communities we serve. We remain disciplined in managing the levers within our control, variable cost, inventory productivity, and merchandise margins. As we advance our strategic initiatives, we are confident these efforts will drive sustainable sales growth, operating margin improvement, and debt reduction in the back half of 2025. Finally, we continue to anticipate ending the year with lower total inventory than last year and generating positive free cash flow. I'll now turn the call over to Jennifer.