[Management View]
Net sales for Q1 FY2025 were $249.1 million, a 2% increase YoY. The company achieved its first positive same-store sales growth in nearly four years, driven by increased demand for firearms, fishing, and e-commerce transactions. Gross margin improved to 30.4%, up 20 basis points YoY. SG&A expenses were $95.3 million, or 38.2% of net sales, indicating improved expense leverage. The company reported a net loss of $21.3 million, with an adjusted net loss of $15.6 million. Strategic priorities include inventory precision, local relevance, personal protection, and brand awareness.

[Outlook]
Fiscal 2025 net sales are expected to range from down 1% to up 3.5%. Adjusted EBITDA guidance is between $33 million and $45 million, with capital expenditures projected between $20 million and $25 million. The company aims to reduce inventory levels by year-end and generate positive free cash flow, prioritizing debt repayment.

[Financial Performance]
- Net Sales: $249.1 million, up 2% YoY
- Gross Margin: 30.4%, up 20 basis points YoY
- SG&A Expenses: $95.3 million, or 38.2% of net sales
- Net Loss: $21.3 million (GAAP), adjusted net loss of $15.6 million
- Adjusted EBITDA: Negative $9 million, compared to negative $8.7 million YoY

[Q&A Highlights]
Question 1: Can you break down the positive comp trends by month and extend that into May?
Answer: February showed good trends, March was pressured due to an ad shift, and April was strong. May continues to show positive comp trends, particularly in the fishing season.

Question 2: Are you seeing increased foot traffic or higher basket sizes within stores?
Answer: It's a mixture of both. Better traffic trends, higher basket sizes, and improved e-commerce performance contributed to the positive results.

Question 3: Is there an opportunity to expand shop-in-shops for key brands?
Answer: Yes, particularly in the personal protection segment. The company sees significant potential to expand shop-in-shops and drive overall basket growth.

Question 4: Did you pull forward about $20 million in inventory in Q1?
Answer: Yes, to address tariff uncertainties and ensure in-stock levels for high-turn products in key categories like firearms, ammo, and fishing.

Question 5: Did sales mix have a negative impact on gross profit margin in Q1?
Answer: Yes, heavy penetration in firearms and ammo pressured margins, but the strategy aligns with market share gains.

Question 6: Thoughts on debt repayment and balance sheet management?
Answer: The company aims to generate positive free cash flow and prioritize debt repayment by year-end.

Question 7: How are you mitigating the impact of tariffs?
Answer: The company is adjusting pricing at the SKU level and focusing on efficiency actions. The pull-forward strategy helps mitigate immediate tariff impacts.

Question 8: Outperformance of NICS data—unit or dollar basis?
Answer: The outperformance is on a unit basis, with significant gains in May. The company is meeting customer demand for value-priced firearms.

[Sentiment Analysis]
Analysts were positive about the company's return to positive same-store sales growth and strategic inventory management. Management's tone was confident, emphasizing disciplined execution and strategic initiatives.

[Quarterly Comparison]
| Metric | Q1 FY2025 | Q1 FY2024 |
|-------------------------|-------------------|-------------------|
| Net Sales | $249.1 million | $244.2 million |
| Gross Margin | 30.4% | 30.2% |
| SG&A Expenses | $95.3 million | $94.2 million |
| Net Loss (GAAP) | $21.3 million | $18.1 million |
| Adjusted Net Loss | $15.6 million | $17.8 million |
| Adjusted EBITDA | -$9 million | -$8.7 million |

[Risks and Concerns]
- Macroeconomic pressures and consumer health
- Tariff-related uncertainties
- Seasonal inventory management

[Final Takeaway]
Sportsman's Warehouse achieved its first positive same-store sales growth in nearly four years, driven by strategic inventory management and increased demand in key categories. The company remains focused on disciplined execution, aiming to reduce inventory levels and generate positive free cash flow by year-end. Despite macroeconomic and tariff-related challenges, management is confident in its strategic plan and ability to drive sustainable growth.