Sportsman’s Warehouse Holdings (NASDAQ:SPWH) reported sales fell 6.7% year-over-year to $288.7 million in Q2. The retailer said the sales decrease for the quarter that ended on August 3 was primarily due to lower demand across most product categories and a decline in store traffic resulting from the continued impact of consumer inflationary pressures on discretionary spending, partially offset by increased same store sales growth in our fishing department and the opening of six new stores since last year. Same store sales were down 9.8% in the quarter.

Gross profit was 31.2% of sales, vs. 32.6% of sales a year ago. The decline was primarily driven by increased costs associated with shrink, and from seasonal markdowns within SPWH’s camping and apparel departments to end the season with clean inventory.

Sportsman’s Warehouse (SPWH) generated adjusted EBITDA of $7.4 million vs. $10.9 million a year ago. EPS was -$0.14 vs. -$0.08 consensus and -$0.04 a year ago.

On the balance sheet, Sportsman’s Warehouse (SPWH) ended the quarter with net debt of $152.5 million and total liquidity of $99.9 million.

CEO update: “While we were more aggressive with our promotional activities during the quarter, our core customer remains firmly under pressure due to the difficult macroenvironment and pullback in discretionary spending. We will continue to carefully manage the business and find ways to take non-customer facing costs out of the business. Although the current conditions are challenging, we are not slowing our progress to transform our business and get back our edge as the leading outdoor specialty retailer. We still have a lot of work ahead of us, but we remain confident that our strategic initiatives have us on the right path to turnaround this business.”

Looking ahead, the company expects full-year revenue of $1.13 billion to $1.17 billion ($1.15 billion midpoint) vs. a prior forecast for $1.15 billion to $1.23 billion.

Shares of Sportsman’s Warehouse (SPWH) fell 1.95% in postmarket trading.