Inventory levels fall 10% year over year
Sportsman’s Warehouse is seeing tangible results from its multiyear effort to improve inventory efficiency, with total inventory falling 10% year over year in the second quarter.
The retailer reduced inventory by $44.5 million to $399 million, as it continued to refine its product assortment and improve the timing of merchandise receipts to better match seasonal demand. CFO Jennifer Fall Jung discussed the progress with analysts during the company’s Sept. 1 earnings call.
“We think the majority of our work around assortments and SKU reduction has kind of been done, and now it’s just really optimizing on a seasonal basis,” Fall Jung said.
The company has spent the past several years rationalizing its SKU portfolio and refining its merchandise assortment as part of a broader effort to improve inventory productivity.
Earlier this year, Sportsman’s Warehouse also made inventory timing a key part of its efficiency strategy, with the goal of improving product turnover. In April, Fall Jung told analysts that the retailer’s spring inventory would arrive later than in the past.
Moving away from excess inventory
Previously, inventory levels had been weighed down by aged merchandise, tying up what President and CEO Paul Stone described as “much needed working capital dollars.”
With much of that inventory clean-up now completed, Sportsman’s Warehouse has greater flexibility to invest in core and new products across camping, clothing, footwear and firearms.
At the same time, savings generated through SKU reductions have been redirected toward the retailer’s core product assortment, helping improve overall in-stock levels.
“Our fall assortment is better aligned with the products and brands that support our core pursuits of hunting, fishing, and shooting, and personal protection,” Stone told analysts.
The company is not considering the work finished, however. Fall Jung acknowledged that second-quarter performance in this area “wasn’t there,” while saying the retailer’s assortment should be “back in check” during the third quarter.
“So we’re feeling really good about our inventory levels,” Fall Jung said. “We spent the past year plus cleaning up the assortments, making sure that we weren’t over assorted, putting bigger buys on our core category.”
Further reductions expected through year-end
Sportsman’s Warehouse expects average inventory levels to remain lower through the end of the year as the company continues to improve the timing of receipts and eliminates slow-moving SKUs.
The objective is to increase inventory turnover and further strengthen efficiency. By the end of 2026, the retailer expects to carry less total inventory than it did in 2025.
“Our core in-stocks are significantly improved, and our category level inventory is the healthiest it has been in many years,” Stone said. “This will remain a focus, as we expect to further improve turns and inventory efficiency in the balance of 2026.”
Retailers across the sector simplify SKU assortments
Sportsman’s Warehouse is not alone in prioritizing inventory health. Other retailers and brands have also been moving toward simpler SKU mixes while adjusting purchasing and receipt schedules.
Duluth Trading, for example, has focused on optimizing receipt scheduling alongside rightsizing its buys and clearing existing stock. In June, the retailer reported that its quarterly inventory was down 25% year over year.
Under Armour has taken an even broader approach, cutting 25% of its SKUs over the past two years as part of a more disciplined inventory strategy.
Dollar General has also reduced the size of its assortment, trimming its overall SKU count by more than 1,500.
For Sportsman’s Warehouse, the combination of assortment rationalization, more precise seasonal inventory timing and greater focus on core products is now translating into lower stock levels and improved availability—while the company continues to target further gains in inventory turnover and efficiency during the remainder of 2026.
