SPORTSMAN'S WAREHOUSE HOLDINGS, INC. Income Taxes Disclosure
(14) Income Taxes
For the fiscal years ended January 31, 2026, February 1, 2025, and February 3, 2024, the income tax provision consisted of the following:
|
|
January 31, |
|
|
February 1, |
|
|
February 3, |
|
|||
|
|
2026 |
|
|
2025 |
|
|
2024 |
|
|||
Current: |
|
|
|
|
|
|
|
|
|
|||
Federal |
|
$ |
(693 |
) |
|
$ |
21 |
|
|
$ |
203 |
|
State |
|
|
554 |
|
|
|
328 |
|
|
|
643 |
|
Total current |
|
|
(139 |
) |
|
|
349 |
|
|
|
846 |
|
Deferred: |
|
|
|
|
|
|
|
|
|
|||
Federal |
|
|
(946 |
) |
|
|
(809 |
) |
|
|
(8,251 |
) |
State |
|
|
- |
|
|
|
2,390 |
|
|
|
(1,804 |
) |
Total deferred |
|
|
(946 |
) |
|
|
1,581 |
|
|
|
(10,055 |
) |
Total income tax provision |
|
$ |
(1,085 |
) |
|
$ |
1,930 |
|
|
$ |
(9,209 |
) |
The following table sets forth income reconciliations of the statutory federal income tax rate to actual rates based on income or loss before income taxes, reflecting the adoption of new accounting guidance. A subsequent table below provides the corresponding information for the prior year before the adoption of new accounting guidance and is provided for comparative purposes only.
|
|
January 31, |
|
|||||
|
|
2026 |
|
|||||
|
|
(in thousands) |
|
|||||
Federal income tax (benefit) at statutory rate |
|
$ |
(10,741 |
) |
|
|
21 |
% |
State income tax, net of federal benefit (1) |
|
|
530 |
|
|
|
(1.0 |
) |
Permanent items |
|
|
819 |
|
|
|
(1.6 |
) |
Tax credits |
|
|
(169 |
) |
|
|
0.3 |
|
Change in valuation allowance |
|
|
8,372 |
|
|
|
(16.4 |
) |
Uncertain tax positions |
|
|
(154 |
) |
|
|
0.3 |
|
Other items |
|
|
258 |
|
|
|
(0.5 |
) |
Effective income tax rate |
|
$ |
(1,085 |
) |
|
|
2.1 |
% |
(1) State taxes in Oregon made up the majority (greater than 50%) of the tax effect in this category.
The provision for income taxes differs from the amounts computed by applying the federal statutory rate as follows for the following periods:
|
February 1, |
|
February 3, |
|
||||
|
|
2025 |
|
|
2024 |
|
||
Federal statutory rate |
|
|
21.0 |
% |
|
|
21.0 |
% |
State tax, net of federal benefit |
|
|
(6.9 |
) |
|
|
4.1 |
|
Permanent items |
|
|
(2.2 |
) |
|
|
(2.4 |
) |
Tax credits |
|
|
1.0 |
|
|
|
2.4 |
|
Valuation allowance |
|
|
(18.3 |
) |
|
|
- |
|
Other items |
|
|
(0.8 |
) |
|
|
(1.0 |
) |
Effective income tax rate |
|
|
(6.2 |
)% |
|
|
24.1 |
% |
The following table presents income taxes paid (net of refunds received) for the year ended January 31, 2026, as required by ASU 2023-09:
|
|
January 31, |
|
|
|
|
2026 |
|
|
Cash paid for income taxes, net of refunds |
|
|
|
|
Federal |
|
$ |
(607 |
) |
State |
|
|
|
|
Louisiana |
|
|
(108 |
) |
Oregon |
|
|
596 |
|
Other jurisdictions |
|
|
110 |
|
Total |
|
$ |
(9 |
) |
We paid cash for income taxes, net of refunds, of $411 as of February 1, 2025 and $1,646 as of February 3, 2024.
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at January 31, 2026 and February 1, 2025, respectively, are presented below:
|
|
January 31, |
|
|
February 1, |
|
||
|
|
2026 |
|
|
2025 |
|
||
Deferred tax assets: |
|
|
|
|
|
|
||
Accrued liabilities |
|
$ |
1,843 |
|
|
$ |
268 |
|
Operating lease liability |
|
|
83,758 |
|
|
|
89,494 |
|
Gift card liability |
|
|
3,482 |
|
|
|
3,191 |
|
Goodwill |
|
|
343 |
|
|
|
425 |
|
Intangible asset |
|
|
343 |
|
|
|
490 |
|
Inventories |
|
|
3,478 |
|
|
|
3,021 |
|
Sales return reserve |
|
|
194 |
|
|
|
214 |
|
Stock-based compensation |
|
|
254 |
|
|
|
726 |
|
Tax credits |
|
|
1,182 |
|
|
|
1,120 |
|
Net operating losses |
|
|
13,268 |
|
|
|
11,136 |
|
Section 163(j) interest |
|
|
7,363 |
|
|
|
5,910 |
|
Loyalty program |
|
|
1,324 |
|
|
|
654 |
|
Total gross deferred tax assets |
|
|
116,832 |
|
|
|
116,649 |
|
Less: Valuation allowance |
|
|
(19,536 |
) |
|
|
(10,082 |
) |
Deferred tax assets, net of valuation allowance |
|
$ |
97,296 |
|
|
$ |
106,567 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
||
Depreciation |
|
$ |
(23,570 |
) |
|
$ |
(28,676 |
) |
ROU asset |
|
|
(72,741 |
) |
|
|
(77,701 |
) |
Prepaid expenses |
|
|
(985 |
) |
|
|
(1,330 |
) |
Total gross deferred tax liabilities |
|
|
(97,296 |
) |
|
|
(107,707 |
) |
Net deferred tax (liability) asset |
|
$ |
- |
|
|
$ |
(1,140 |
) |
As of January 31, 2026, the Company had a federal net operating loss (“NOL”) carryforward of $53,397 with no expiration period. In addition, the Company has federal credit carryforwards of $1,174 which begins to expire in 2044. The Company continues to evaluate the possibility of an ownership change in accordance with Internal Revenue Code Section 382, which could limit the utilization of their NOL and credit carryforwards each year. In general terms, an ownership change results from transactions increasing the ownership of certain stockholders in the stock of a corporation by more than 50 percent over a three-year period. As of January 31, 2026, the Company is not aware of any such ownership change.
As of January 31, 2026, the Company had state NOL carryforwards of $14,399 with no expiration period and state NOL carryforwards of $27,089 which expire beginning in 2032 through 2044. In addition, the Company has state credit carryforwards of $60 which begin to expire in 2038.
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company considers the scheduled reversals of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. The Company considers all available evidence, both positive and negative, to determine the realizability of deferred tax assets and includes historical information about results of operations for the current and preceding years as well as more subjective information about future years. A significant piece of objective negative evidence evaluated was a cumulative loss over the most recent 36-month period ended January 31, 2026, which was not outweighed by available positive evidence. Accordingly, as of January 31, 2026, a valuation allowance of $19,536 was provided against the net amount of deferred tax assets as compared to $10,082 as of February 1, 2025.
As of January 31, 2026, the Company had no material unrecognized tax benefits. The Company does not anticipate that unrecognized tax benefits will significantly increase or decrease within 12 months of the reporting date. Federal
tax years that remain subject to examination are the periods ended January 28, 2023 through January 31, 2026. State years that remain subject to examination are generally the periods from January 29, 2022 through January 31, 2026 in various jurisdictions.
The Company’s policy is to accrue interest expense, and penalties as appropriate, on estimated unrecognized tax benefits as a charge to interest expense in the consolidated statements of operations. No interest or penalties were accrued for fiscal years 2025, 2024 or 2023.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 31, 2026 | Showing above |
| 2025 | Apr 2, 2025 | |
| 2024 | Apr 4, 2024 | |
| 2023 | Apr 13, 2023 | |
| 2022 | Mar 30, 2022 | |
| 2018 | Mar 29, 2018 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.