Sportsman's Warehouse Holdings, Inc.

Thank you for standing by, and welcome to Sportsman's Warehouse first quarter 2026 earnings conference call. Currently, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. To remove yourself from the queue, you may press star 1-1 again. I would now like to hand the call over to Riley Timmer. Vice President of Strategic Programs and IR. Please go ahead.

Thank you, Operator. Participating on our Q1 2026 call today is Paul Stone, our Chief Executive Officer, and Jennifer Paul Young, our Chief Financial Officer. I will now take a moment and 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 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 exhibited 99.1 to the Form 8K we furnished to the SEC today. which is also available on the investor relations section of our website at sportsmans.com. I'll now turn the call over to Paul.

Thank you, Riley, and good afternoon, everyone. Before we begin, I want to recognize our dedicated outfitters across the country. Every day, they deliver on our promise of great gear and great service, strengthening our connection with customers and supporting the progress to transform Sportsman's Warehouse. I'm pleased that the same-source sales in the first quarter were up just over 2% compared to last year, despite ongoing consumer microeconomic pressure and higher fuel prices. This increase is on top of the 2% growth we achieved in Q1 of last year. We continue to refine our assortment to meet the current needs of the customer with regionally specific products and brands that strategically align to our core pursuits. First quarter sales in our hunting and shooting sports department increased over 7% versus last year. During Q1, we executed a successful Spring Range Days event, showcasing pursuit-led solutions for the shooting sports customer through curated products and accessories. While event-driven demand further supported sales of firearms and ammunition during the quarter, we will continue to strategically build on our authority as a leader in both shooting sports and personal protection. Sales in our fishing department increased nearly 6% in Q1 and is up about 17% on a two-year comp stock. Although a softer than expected ice fishing season put pressure on the category in Q1, we are confident in our assortment and position in the market to continue to capture share during the late spring and summer seasons. As we've discussed on prior calls, last year we strategically reduced inventory and the assortment in our camping and softline departments This decision was intentional to eliminate slow-moving and low gross margin return on investment products from our assortment that didn't align with our core pursuits, causing a short-term softening of sales. However, this allowed us to free up working capital dollars to buy into the product and brands these two departments that now align to our core pursuits of hunting, fishing, shooting, and personal protection. Newness for the summer season is now landing in our stores with a focus on quality and value with name brands that customers recognize. We will continue to build out these two complementary categories to provide a full solution for our passionate outdoor customers. Our e-commerce business outperformed again with e-com driven sales up over 6% in the quarter. This underscores the strength of our omni-channel model and the growth potential in our core pursuits. Because firearms, and in certain states, ammunition require in-store pickup, our e-com business naturally drives traffic into our stores. We continue to strategically leverage this advantage to support growth across both digital and store sales. We once again saw improvements in both units per transaction and average order value, driven by our merchandising strategy, better in-stocks, and our strategic shift to solution selling. Close management of inventory remains a key priority in our transformation strategy. I'm pleased with how the team is timing our flow of merchandise to ensure we are regionally and seasonally relevant to meet shopper demand. This will continue to be a focus as we expect to improve terms and inventory efficiency in 2026. On our call last quarter, we outlined the next phase of our business transformation, centering on strengthening our leadership position in our core pursuits of hunting, fishing, and shooting and personal protection. These are the core pursuits that make up the DNA of Sportsman's Warehouse. During the first quarter, we made meaningful improvements to our website to enhance the online fishing experience. Early results have been encouraging, contributing to strong e-commerce sales growth in the quarter. We will continue to integrate content with commerce to help anglers more easily build their fishing solution. With participation rates continuing to grow each year, We believe this category represents significant growth upside for the business. Additionally, during the first quarter, we entered into a partnership with one of the top fishing and hunting lifestyle brands, Field & Stream. Together, we are working with leading fishing influencers to create shareable content that enhances our brand exposure, showcases trending new products, and drives traffic to Sportsman's Warehouse. While we were in the early stages of this partnership, we are encouraged by the early results. Turning now to our firearm solution bundling strategy, we made solid progress in Q1 on this initiative with a full solution offering now available online for top-selling products. Many of our customers are first-time firearm owners, so offering carefully selected pairings like gun safes, hearing and eye protection, and our firearm service plan, helping first-time buyers feel confident in their initial purchase decisions. That experience then carries into our stores. where customers can build on those pairings with support from our experienced outfitters, tailored to local needs and pursuits. This experience supports responsible ownership while increasing the attachment and basket size. By combining curated e-commerce pairings with in-store experience, we believe we can expand gross margins in the hunting and shooting sports category while reinforcing our leadership in these key pursuits. Reinventing our loyalty program is a key step in Sportsman's Warehouse effort to build a more durable, higher-value customer model, and our partnership with Epsilon, a leading loyalty and personalization consultancy, marks an important move forward in that transformation. The initiative is designed to improve retention, increase customer lifetime value, and drive more efficient marketing, while supporting stronger repeat purchase behavior and a more disciplined promotional strategy. Looking ahead. The U.S. consumer remains under pressure with high fuel costs adding additional weight to discretionary spending. We feel optimistic about our position in the market, our curated assortment of iconic American brands, and our summer readiness, where we will celebrate and showcase red, white, and blue for America's 250th anniversary. Our focus remains on driving profitable growth, discipline management of inventory, generating positive free cash flow to pay down debt and executing against our strategic priorities. With that, I'll turn the call over to Jennifer.