Dive Brief:
- Sportsman’s Warehouse remains focused on its inventory timing as a way to drive efficiency and better product turnaround, CFO Jennifer Fall Jung said during a March 31 earnings call.
- Currently, the retailer’s spring season inventory is scheduled to “arrive later” to support improved turns and overall productivity, Jung told analysts.
- “We expect to operate with lower average inventory levels throughout 2026 compared to last year, while still having sufficient levels of inventory to hit the top end of our plan,” Jung said.
Dive Insight:
Disciplined inventory management has been a critical component of Sportsman’s Warehouse’s supply chain strategy. The retailer aims to continue to sharpen assortments, cut lower productivity SKUs and better align product categories to the company’s core pursuits, President and CEO Paul Stone told analysts.
“We exited the year in a healthier inventory position, having worked through the majority of our seasonal product,” Jung said.
The retailer ended 2025 with inventory down $29.1 million, or 8.5% year over year, Jung said.
Further, Sportsman’s Warehouse improved in-stock levels in the core 20% of products that drive 80% of the retailer’s business, Stone said. This not only delivered faster turns but also contributed to SKU reductions and improved seasonal alignment, he added.
Going forward, the retailer will pursue a plan similar to what it did in Q3 and Q4 of its fiscal year, Jung told analysts. Further, the retailer plans to “take the marks before the season is over while the demand is still there.”
“So that's what's really helped our inventory, especially towards Q4 and then how we ended up lean, even though [when] we came into the quarter… the first six weeks were a little bit tough,” Jung said.
Inventory management has been a long-time focus for the retailer. In 2024, Sportsman’s Warehouse tapped Blue Yonder to develop a system to boost in-stock visibility, seasonal regional auto replenishment and other inventory management capabilities.
The retailer has also been rationalizing SKUs and refining product assortments. For instance, in 2024, Sportsman’s Warehouse removed 40% of its SKUs in its fishing category as well as 30% of vendors in the category. More recently, last year, Sportsman’s Warehouse worked with vendors to frontload $20 million worth of spring and summer inventory as a buffer against U.S. tariffs.
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