Financial Performance - Academy Sports and Outdoors, Inc. reported quarterly earnings of $1.94 per share, missing the Zacks Consensus Estimate of $2.12 per share, and down from $2.03 per share a year ago, representing an earnings surprise of -8.49% [1] - The company posted revenues of $1.6 billion for the quarter ended July 2025, missing the Zacks Consensus Estimate by 0.67%, and up from $1.55 billion year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates just once and topped consensus revenue estimates only once [2] Stock Performance - Academy Sports and Outdoors shares have lost about 6.9% since the beginning of the year, while the S&P 500 has gained 9.8% [3] - The current status translates into a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $1.08 on revenues of $1.39 billion, and for the current fiscal year, it is $5.83 on revenues of $6.1 billion [7] - The estimate revisions trend for Academy Sports and Outdoors was unfavorable ahead of the earnings release, which may impact future stock movements [5][6] Industry Context - The Leisure and Recreation Products industry, to which Academy Sports and Outdoors belongs, is currently in the bottom 30% of the Zacks Industry Rank, indicating potential challenges for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry outlook can materially impact stock performance [5][8]

Q2 FY25 Financial Performance - Net sales reached $16 billion, a 33% year-over-year increase[30] - Comparable sales increased by 02% marking the first positive quarterly comp since 2021[30,32] - Gross margin was 360%[30] - GAAP EPS was $185, while adjusted EPS was $194[30] Fiscal Year 2025 Guidance - Net sales guidance is revised to a range of negative 30% to positive 10%, translating to $60 billion to $6265 billion[40,41] - GAAP net income is projected between $360 million and $410 million[41] - Adjusted net income is expected to be between $380 million and $430 million[41] - Adjusted free cash flow is estimated to be between $250 million and $320 million[41] Strategic Growth Initiatives - The company opened 3 new stores in Q2 2025 and plans to open an additional 11 stores in Q3[13] - ASO aims to expand its store base by 50%+ in existing and new markets[11] - New store targets include year-one sales of $12 million - $16 million with a spend of $4 million - $5 million per store in FY25 and a targeted ROIC of 20%+[15]

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Second Quarter Fiscal 2025 Highlights](index=1&type=section&id=Second%20Quarter%20Fiscal%202025%20Highlights) Academy Sports + Outdoors reported positive sales growth and comparable sales in Q2 FY25, driven by strategic initiatives and customer value proposition, leading to an updated full-year guidance - Sales increased **3.3%** and comparable sales increased **0.2%** in the second quarter[1](index=1&type=chunk) - eCommerce sales saw a significant increase of **17.7%**[1](index=1&type=chunk) - Diluted GAAP EPS for the second quarter was **$1.85**[1](index=1&type=chunk) - The company opened **three new stores** during the quarter[1](index=1&type=chunk) - CEO Steve Lawrence noted that sales inflected to a positive comparable, driven by steady improvements from strategic initiatives and a resonating value proposition, leading to market share gains[2](index=2&type=chunk) - CFO Carl Ford highlighted improved Q2 sales, acceleration in strategic initiatives, and better visibility into tariff impacts, which led to narrowing the low end of the sales guidance range[11](index=11&type=chunk) [Financial Results](index=1&type=section&id=Financial%20Results) [Second Quarter Operating Results](index=1&type=section&id=Second%20Quarter%20Operating%20Results) For the thirteen weeks ended August 2, 2025, Academy Sports + Outdoors reported a 3.3% increase in net sales and a positive comparable sales growth of 0.2%, though net income and diluted GAAP EPS declined Second Quarter Operating Results | Metric | August 2, 2025 | August 3, 2024 | Change (%) | | :-------------------------------- | :------------- | :------------- | :--------- | | Net sales (in millions) | $1,599.8 | $1,549.0 | 3.3% | | Comparable sales | 0.2% | (6.9)% | - | | Income before income tax (in millions) | $164.8 | $186.5 | (11.6)% | | Net income (in millions) | $125.4 | $142.6 | (12.1)% | | Diluted GAAP EPS | $1.85 | $1.95 | (5.1)% | | Adjusted diluted EPS | $1.94 | $2.03 | (4.4)% | - Gross margin for Q2 FY25 was **36.0%**, a slight decrease from **36.1%** in Q2 FY24[22](index=22&type=chunk) - Selling, general and administrative expenses increased to **25.3%** of sales in Q2 FY25, up from **23.8%** in Q2 FY24[22](index=22&type=chunk) [Year-to-Date Operating Results](index=1&type=section&id=Year-to-Date%20Operating%20Results) For the twenty-six weeks ended August 2, 2025, net sales increased by 1.3%, but comparable sales remained negative at (1.7)%, with net income and diluted GAAP EPS experiencing more significant declines Year-to-Date Operating Results | Metric | August 2, 2025 | August 3, 2024 | Change (%) | | :-------------------------------- | :------------- | :------------- | :--------- | | Net sales (in millions) | $2,951.2 | $2,913.2 | 1.3% | | Comparable sales | (1.7)% | (6.4)% | - | | Income before income tax (in millions) | $227.9 | $284.2 | (19.8)% | | Net income (in millions) | $171.5 | $219.1 | (21.7)% | | Diluted GAAP EPS | $2.52 | $2.93 | (14.0)% | | Adjusted diluted EPS | $2.69 | $3.08 | (12.7)% | - Gross margin for YTD FY25 was **35.1%**, an increase from **34.8%** in YTD FY24[24](index=24&type=chunk) - Selling, general and administrative expenses increased to **26.9%** of sales in YTD FY25, up from **24.8%** in YTD FY24[24](index=24&type=chunk) [Balance Sheet Overview](index=3&type=section&id=Balance%20Sheet%20Overview) As of August 2, 2025, the company's cash and cash equivalents decreased, while merchandise inventories significantly increased, and long-term debt remained relatively stable Balance Sheet Highlights | Metric (in millions) | August 2, 2025 | August 3, 2024 | Change (%) | | :------------------- | :------------- | :------------- | :--------- | | Cash and cash equivalents | $300.9 | $324.6 | (7.3)% | | Merchandise inventories, net | $1,587.6 | $1,366.6 | 16.2% | | Long-term debt, net | $481.7 | $483.6 | (0.4)% | - Inventory per store was up **4.5%** in units and **8.2%** in dollars as of August 2, 2025[5](index=5&type=chunk) - Total assets increased to **$5,275.983 million** as of August 2, 2025, from **$4,874.358 million** as of August 3, 2024[26](index=26&type=chunk) [Capital Allocation](index=3&type=section&id=Capital%20Allocation) The company significantly reduced share repurchases year-over-year while increasing dividends paid, and declared a quarterly cash dividend of $0.13 per share subsequent to the quarter end Year-to-Date Capital Allocation | Metric (in millions) | August 2, 2025 (YTD) | August 3, 2024 (YTD) | Change (%) | | :------------------- | :------------------- | :------------------- | :--------- | | Share repurchases | $99.9 | $222.3 | (55.1)% | | Dividends paid | $17.4 | $16.1 | 8.1% | - Subsequent to the end of the second quarter, a quarterly cash dividend of **$0.13 per share** of common stock was declared on August 28, 2025, payable on October 9, 2025[6](index=6&type=chunk) [Operational Updates](index=3&type=section&id=Operational%20Updates) [New Store Openings and Footprint](index=3&type=section&id=New%20Store%20Openings%20and%20Footprint) Academy opened three new stores in Q2 FY25, bringing the total to 306 locations across 21 states, with plans to open 20 to 25 new stores in fiscal 2025 - Three new stores were opened during the second quarter in Florida, Virginia, and West Virginia[1](index=1&type=chunk)[7](index=7&type=chunk) - The total store count reached **306 locations** across **21 states**[7](index=7&type=chunk) - The company plans to open a total of **20 to 25 stores** in fiscal 2025[7](index=7&type=chunk) Academy Store Footprint Update | Time Frame | Stores at beginning of the period | Number of stores opened during the period | Number of stores closed during the period | Total stores open at end of period | Total gross square feet at the end of period (thousands) | | :--------- | :-------------------------------- | :---------------------------------------- | :---------------------------------------- | :--------------------------------- | :------------------------------------------------------- | | FY 2024 | 282 | 16 | — | 298 | 20,604 | | 1st Quarter 2025 | 298 | 5 | — | 303 | 20,879 | | 2nd Quarter 2025 | 303 | 3 | — | 306 | 21,070 | [Tariff Mitigation Actions](index=3&type=section&id=Tariff%20Mitigation%20Actions) The company believes it has largely offset the impact of current incremental tariffs for fiscal 2025 through various tactics, including vendor partnerships, country of origin shifts, and pricing optimization - The Company believes it has mostly offset the impact of the current incremental tariffs on its business for fiscal 2025[9](index=9&type=chunk) - Tactics deployed include partnering with factories and vendors to absorb a portion of the incremental expense[10](index=10&type=chunk) - Other strategies involve working with overseas partners to shift country of origin, adjusting unit buys, pulling in additional inventory from domestic warehouses, and utilizing pricing optimization tools to drive higher Average Unit Retails (AUR's)[10](index=10&type=chunk) [Fiscal 2025 Outlook](index=5&type=section&id=Fiscal%202025%20Outlook) [Updated Fiscal 2025 Guidance](index=5&type=section&id=Updated%20Fiscal%202025%20Guidance) Academy updated its fiscal 2025 guidance, narrowing the low end of its net sales and comparable sales forecasts while maintaining the high end, and raising the low end of GAAP and Adjusted EPS guidance Updated Fiscal 2025 Guidance | Metric (in millions, except per share) | Previous Low | Previous High | Updated Low | Updated High | | :----------------------------------- | :----------- | :------------ | :---------- | :----------- | | Net sales | $5,970 | $6,265 | $6,000 | $6,265 | | Comparable sales | (4.0)% | 1.0% | (3.0)% | 1.0% | | Gross margin rate | 34.0% | 34.5% | 34.0% | 34.5% | | GAAP net income | $350 | $410 | $360 | $410 | | Adjusted net income | $375 | $435 | $380 | $430 | | GAAP diluted EPS | $5.10 | $5.90 | $5.30 | $6.00 | | Adjusted diluted EPS | $5.45 | $6.25 | $5.60 | $6.30 | | Diluted weighted average common shares | ~69 | ~69 | ~68 | ~68 | | Capital Expenditures | $180 | $220 | $180 | $220 | | Adjusted free cash flow | $250 | $320 | $250 | $320 | - The company expects the tax rate for fiscal 2025 to be **23.5%**[11](index=11&type=chunk) [Company Information & Disclosures](index=5&type=section&id=Company%20Information%20%26%20Disclosures) [About Academy Sports + Outdoors](index=5&type=section&id=About%20Academy%20Sports%20%2B%20Outdoors) Academy Sports + Outdoors is a leading full-line sporting goods and outdoor recreation retailer in the U.S., operating over 300 stores across 21 states with a localized merchandising strategy - Academy is a leading full-line sporting goods and outdoor recreation retailer in the United States[15](index=15&type=chunk) - Originally founded in 1938 as a family business in Texas, it has grown to more than **300 stores** across **21 states**[15](index=15&type=chunk) - The company's mission is to provide 'Fun for All' through a localized merchandising strategy and value proposition, with product assortment focusing on outdoor, apparel, sports & recreation, and footwear[15](index=15&type=chunk) [Non-GAAP Measures Explanation](index=6&type=section&id=Non-GAAP%20Measures%20Explanation) The report includes non-GAAP financial measures like Adjusted EBITDA and Adjusted EPS to provide additional insights into financial performance by excluding certain items that affect comparability, used for business planning and evaluation - Non-GAAP measures (Adjusted EBITDA, Adjusted EBIT, Adjusted Net Income, Adjusted Earnings per Common Share, and Adjusted Free Cash Flow) are presented as supplemental measures not required by GAAP[16](index=16&type=chunk) - These measures are useful to investors as they provide additional information on comparisons between periods by excluding certain items that affect overall comparability[16](index=16&type=chunk) - The company uses these non-GAAP measures for business planning, understanding underlying trends, and measuring performance relative to market peers, emphasizing they should be considered in addition to, not as an alternative for, GAAP results[16](index=16&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) The press release contains forward-looking statements regarding fiscal 2025 outlook, tariff mitigation, strategic plans, growth, dividends, and share repurchases, which are subject to various risks and uncertainties that could cause actual results to differ materially - Forward-looking statements are based on current expectations and are not guarantees of future performance[18](index=18&type=chunk) - These statements include the Company's fiscal 2025 outlook, tariff-mitigation actions, strategic plans, business growth, new store openings, dividends, and share repurchases[18](index=18&type=chunk) - Actual results may differ materially due to various risks, uncertainties, and changes in global, regional, or local economic, business, competitive, market, regulatory, and environmental factors, including macroeconomic challenges, inflation, interest rates, trade policy changes, and geopolitical tensions[18](index=18&type=chunk) [Investor and Media Contacts](index=6&type=section&id=Investor%20and%20Media%20Contacts) Contact information for investor relations and media inquiries is provided for stakeholders - Investor Contact: Dan Aldridge, VP, Investor Relations, 832-739-4102, dan.aldridge@academy.com[19](index=19&type=chunk)[20](index=20&type=chunk) - Media Contact: Meredith Klein, VP, Communications, 346-823-6615, meredith.klein@academy.com[19](index=19&type=chunk)[20](index=20&type=chunk) [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Income (Thirteen Weeks Ended)](index=7&type=section&id=Consolidated%20Statements%20of%20Income%20(Thirteen%20Weeks%20Ended)) This section presents the unaudited consolidated statements of income for the thirteen weeks ended August 2, 2025, and August 3, 2024, detailing net sales, cost of goods sold, gross margin, operating expenses, and net income Consolidated Statements of Income (Thirteen Weeks Ended) | Metric (in thousands) | August 2, 2025 | % of Sales | August 3, 2024 | % of Sales | | :-------------------------------- | :------------- | :--------- | :------------- | :--------- | | Net sales | $1,599,838 | 100.0% | $1,548,980 | 100.0% | | Cost of goods sold | $1,023,105 | 64.0% | $990,255 | 63.9% | | Gross margin | $576,733 | 36.0% | $558,725 | 36.1% | | Selling, general and administrative expenses | $404,352 | 25.3% | $368,639 | 23.8% | | Operating income | $172,381 | 10.8% | $190,086 | 12.3% | | Income before income taxes | $164,833 | 10.3% | $186,546 | 12.0% | | Net income | $125,434 | 7.8% | $142,588 | 9.2% | | Diluted EPS | $1.85 | - | $1.95 | - | [Consolidated Statements of Income (Twenty-Six Weeks Ended)](index=8&type=section&id=Consolidated%20Statements%20of%20Income%20(Twenty-Six%20Weeks%20Ended)) This section provides the unaudited consolidated statements of income for the twenty-six weeks ended August 2, 2025, and August 3, 2024, showing year-to-date performance across key income statement metrics Consolidated Statements of Income (Twenty-Six Weeks Ended) | Metric (in thousands) | August 2, 2025 | % of Sales | August 3, 2024 | % of Sales | | :-------------------------------- | :------------- | :--------- | :------------- | :--------- | | Net sales | $2,951,247 | 100.0% | $2,913,200 | 100.0% | | Cost of goods sold | $1,915,645 | 64.9% | $1,898,681 | 65.2% | | Gross margin | $1,035,602 | 35.1% | $1,014,519 | 34.8% | | Selling, general and administrative expenses | $793,956 | 26.9% | $722,050 | 24.8% | | Operating income | $241,646 | 8.2% | $292,469 | 10.0% | | Income before income taxes | $227,861 | 7.7% | $284,198 | 9.8% | | Net income | $171,518 | 5.8% | $219,053 | 7.5% | | Diluted EPS | $2.52 | - | $2.93 | - | [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) This section presents the unaudited consolidated balance sheets as of August 2, 2025, February 1, 2025, and August 3, 2024, detailing assets, liabilities, and stockholders' equity Consolidated Balance Sheets (Key Items, in thousands) | Metric | August 2, 2025 | February 1, 2025 | August 3, 2024 | | :--------------------------- | :------------- | :--------------- | :------------- | | Cash and cash equivalents | $300,860 | $288,929 | $324,568 | | Merchandise inventories, net | $1,587,624 | $1,308,840 | $1,366,616 | | Total current assets | $1,985,922 | $1,710,149 | $1,812,388 | | Total assets | $5,275,983 | $4,900,963 | $4,874,358 | | Total current liabilities | $1,212,008 | $960,881 | $1,091,275 | | Long-term debt, net | $481,738 | $482,679 | $483,617 | | Total liabilities | $3,200,833 | $2,896,928 | $2,921,964 | | Stockholders' equity | $2,075,150 | $2,004,035 | $1,952,394 | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section provides the unaudited consolidated statements of cash flows for the twenty-six weeks ended August 2, 2025, and August 3, 2024, outlining cash flows from operating, investing, and financing activities Consolidated Statements of Cash Flows (Key Items, in thousands) | Metric | August 2, 2025 (YTD) | August 3, 2024 (YTD) | | :----------------------------------- | :------------------- | :------------------- | | Net cash provided by operating activities | $236,047 | $291,023 | | Net cash used in investing activities | $(107,899) | $(73,739) | | Net cash used in financing activities | $(116,217) | $(240,636) | | Net increase (decrease) in cash and cash equivalents | $11,931 | $(23,352) | | Cash and cash equivalents at end of period | $300,860 | $324,568 | - Capital expenditures increased to **$107,576 thousand** in YTD FY25 from **$73,425 thousand** in YTD FY24[28](index=28&type=chunk) - Repurchase of common stock for retirement decreased significantly to **$99,031 thousand** in YTD FY25 from **$220,325 thousand** in YTD FY24[28](index=28&type=chunk) [Reconciliations of GAAP to Non-GAAP Financial Measures](index=12&type=section&id=Reconciliations%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) [Adjusted EBITDA and Adjusted EBIT Reconciliation](index=12&type=section&id=Adjusted%20EBITDA%20and%20Adjusted%20EBIT%20Reconciliation) This section provides the reconciliation of net income to Adjusted EBITDA and Adjusted EBIT for the thirteen and twenty-six weeks ended August 2, 2025, and August 3, 2024, highlighting adjustments for interest, taxes, depreciation, amortization, and equity compensation Adjusted EBITDA and Adjusted EBIT (in thousands) | Metric | Q2 FY25 | Q2 FY24 | YTD FY25 | YTD FY24 | | :-------------------------- | :-------- | :-------- | :-------- | :-------- | | Net income | $125,434 | $142,588 | $171,518 | $219,053 | | Interest expense, net | $9,028 | $9,071 | $18,072 | $18,557 | | Income tax expense | $39,399 | $43,958 | $56,343 | $65,145 | | Depreciation and amortization | $31,021 | $28,918 | $61,171 | $57,771 | | Equity compensation | $7,602 | $7,955 | $15,144 | $14,093 | | Adjusted EBITDA | $212,484 | $232,490 | $322,248 | $375,068 | | Adjusted EBIT | $181,463 | $203,572 | $261,077 | $317,297 | - Adjusted EBITDA decreased by **8.6%** for Q2 and **14.1%** for YTD[31](index=31&type=chunk) - Adjusted EBIT decreased by **10.9%** for Q2 and **17.7%** for YTD[31](index=31&type=chunk) [Adjusted Net Income and Adjusted EPS Reconciliation](index=13&type=section&id=Adjusted%20Net%20Income%20and%20Adjusted%20EPS%20Reconciliation) This section reconciles net income to Adjusted Net Income and Adjusted Earnings Per Common Share for the thirteen and twenty-six weeks ended August 2, 2025, and August 3, 2024, by adjusting for equity compensation and its tax effects Adjusted Net Income and Adjusted EPS (in thousands, except per share) | Metric | Q2 FY25 | Q2 FY24 | YTD FY25 | YTD FY24 | | :-------------------------------- | :-------- | :-------- | :-------- | :-------- | | Net income | $125,434 | $142,588 | $171,518 | $219,053 | | Equity compensation | $7,602 | $7,955 | $15,144 | $14,093 | | Tax effects of these adjustments | $(1,717) | $(1,901) | $(3,745) | $(3,333) | | Adjusted Net Income | $131,319 | $148,642 | $182,917 | $230,262 | | Diluted EPS | $1.85 | $1.95 | $2.52 | $2.93 | | Adjusted diluted EPS | $1.94 | $2.03 | $2.69 | $3.08 | - Adjusted Net Income decreased by **11.7%** for Q2 and **20.6%** for YTD[32](index=32&type=chunk) - Adjusted diluted EPS decreased by **4.4%** for Q2 and **12.7%** for YTD[32](index=32&type=chunk) Fiscal Year 2025 Guidance Reconciliation for Adjusted Net Income and Adjusted EPS (in millions, except per share) | Metric | Low Range (FY26) | High Range (FY26) | | :----------------------------------- | :--------------- | :---------------- | | Net Income | $360.0 | $410.0 | | Equity compensation | $20.0 | $20.0 | | Adjusted Net Income | $380.0 | $430.0 | | Diluted EPS | $5.30 | $6.00 | | Equity compensation | $0.30 | $0.30 | | Adjusted Diluted EPS | $5.60 | $6.30 | [Adjusted Free Cash Flow Reconciliation](index=14&type=section&id=Adjusted%20Free%20Cash%20Flow%20Reconciliation) This section reconciles net cash provided by operating activities to Adjusted Free Cash Flow for the thirteen and twenty-six weeks ended August 2, 2025, and August 3, 2024 Adjusted Free Cash Flow (in thousands) | Metric | Q2 FY25 | Q2 FY24 | YTD FY25 | YTD FY24 | | :----------------------------------- | :-------- | :-------- | :-------- | :-------- | | Net cash provided by operating activities | $78,575 | $91,346 | $236,047 | $291,023 | | Net cash used in investing activities | $(56,911) | $(41,384) | $(107,899) | $(73,739) | | Adjusted Free Cash Flow | $21,664 | $49,962 | $128,148 | $217,284 | - Adjusted Free Cash Flow decreased by **56.6%** for Q2 and **41.1%** for YTD[36](index=36&type=chunk)

Financial Performance - Company reported a 3.3% increase in net sales for the second quarter, totaling $1,599.8 million compared to $1,549.0 million in the same period last year [1][21] - Comparable sales increased by 0.2%, a significant improvement from a decline of 6.9% in the previous year [1][21] - Diluted GAAP earnings per share (EPS) for the second quarter was $1.85, down 5.1% from $1.95 in the prior year [1][21] Year-to-Date Results - Year-to-date net sales reached $2,951.2 million, reflecting a 1.3% increase from $2,913.2 million in the same period last year [3][22] - Year-to-date comparable sales decreased by 1.7%, an improvement from a decline of 6.4% in the previous year [3][22] - Year-to-date net income was $171.5 million, down 21.7% from $219.1 million in the prior year [3][22] Store Expansion - Company opened three new stores in Florida, Virginia, and West Virginia during the second quarter, bringing the total to 306 locations across 21 states [1][7] - Plans to open 20 to 25 new stores in fiscal 2025 [7] Inventory and Cash Position - Merchandise inventories increased by 16.2% year-over-year, totaling $1,587.6 million [4][22] - Cash and cash equivalents decreased by 7.3% to $300.9 million compared to $324.6 million in the previous year [4][22] Capital Allocation - Share repurchases totaled $222.3 million, a decrease of 55.1% compared to the previous year [6] - Dividends paid increased by 8.1% to $16.1 million [6] Tariff Mitigation Strategies - Company has implemented various strategies to mitigate the impact of tariffs, including partnering with vendors and adjusting unit buys [9][10] - These actions are expected to help maintain a strong value proposition for customers [10] 2025 Outlook - Company narrowed its sales guidance for fiscal 2025, now expecting a range of -3.0% to positive 1.0% [11] - Updated guidance for net sales is between $6,000 million and $6,265 million [11]

Core Insights - Academy Sports + Outdoors has opened three new locations and plans to open eight more in fall 2025, aiming for a total of 20 to 25 new stores in the fiscal year [1][3] - The new stores are expected to create over 650 jobs across the company's footprint [3] Store Openings - New locations are in Boardman, Ohio; Beaufort, S.C.; and Virginia Beach, Va., with additional openings planned in Rome, Ga.; Cullman, Ala.; Mishawaka, Ind.; Lakeland, Fla.; Columbia, Tenn.; Albany, Ga.; Palestine, Texas; and Batesville, Miss. [1] - Each new store will celebrate its grand opening with exclusive deals, giveaways, and community-focused charitable initiatives [4] Community Engagement - Academy partnered with local organizations to host donation shopping sprees for local youth, providing essential back-to-school gear [5] Product Offering - Academy stores offer a wide range of products including apparel, footwear, sports and camping equipment, hunting and fishing gear, and outdoor cooking supplies from top national brands [2][6] - The company guarantees the best value by beating competitor prices by 5% and offers additional savings through its Academy Credit Card [7] Private Label Brands - Academy features exclusive private label brands such as Magellan Outdoors, Freely, and R.O.W., providing quality outdoor apparel and equipment [8] Customer Engagement - Customers can join the myAcademy rewards program, which includes a 10% welcome offer and lower free shipping minimums [10] Company Overview - Academy Sports + Outdoors is a leading full-line sporting goods and outdoor recreation retailer in the U.S., with over 300 stores across 21 states [11]

Core Viewpoint - Academy Sports and Outdoors, Inc. (ASO) is anticipated to report a year-over-year increase in earnings driven by higher revenues, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on September 2, with a consensus estimate of $2.12 per share, reflecting a year-over-year change of +4.4%. Revenues are projected to be $1.61 billion, up 4% from the previous year [3][2]. - The consensus EPS estimate has been revised 0.33% higher over the last 30 days, indicating a collective reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP (Expected Surprise Prediction) model suggests that the Most Accurate Estimate for Academy Sports and Outdoors is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -9.15%, indicating a bearish outlook from analysts [12]. - The stock currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat [12]. Historical Performance - In the last reported quarter, the company was expected to post earnings of $0.91 per share but only achieved $0.76, resulting in a surprise of -16.48%. Over the last four quarters, the company has only beaten consensus EPS estimates once [13][14]. Conclusion - Academy Sports and Outdoors does not appear to be a strong candidate for an earnings beat, and investors should consider other factors when making decisions regarding this stock ahead of its earnings release [17].

Core Viewpoint - Academy Sports and Outdoors, Inc. is set to release its second quarter fiscal 2025 financial results on September 2, 2025, before market opening [1] Group 1: Financial Results Announcement - The financial results will be discussed in a live conference call scheduled for 10:00 a.m. Eastern Time on the same day [2] - Participants can access the call by dialing specific numbers for U.S. and international callers, with a passcode provided [2] Group 2: Company Background - Academy Sports and Outdoors is a prominent full-line sporting goods and outdoor recreation retailer in the U.S., with over 300 stores across 21 states [4] - The company was founded in 1938 as a family business in Texas and aims to provide "Fun for All" through a localized merchandising strategy [4] - The product assortment includes key categories such as outdoor, apparel, sports & recreation, and footwear, featuring both national brands and private label brands [4]

Core Viewpoint - Academy Sports and Outdoors, Inc. is enhancing its merchandising, RFID technology, and operational capabilities to achieve more consistent performance amid fluctuating sales trends. The positive outlook is supported by Telsey Advisory Group analyst Cristina Fernández, who has raised the price forecast from $58 to $65 while maintaining an Outperform rating [1]. Group 1: Operational Improvements - The company is focusing on supply chain enhancements, e-commerce, marketing, loyalty programs, and customer data management [2]. - Key hires, including Chad Fox as Chief Commercial Officer and Sumit Anand as Chief Information Officer, are expected to advance the company's infrastructure and online capabilities [3]. - New warehouse and inventory systems are being implemented to improve truckload efficiency over time [3]. Group 2: Marketing and Customer Engagement - The loyalty program enrollment is currently low but has the potential to enable personalized marketing as it grows [4]. - The "Fun Can't Lose" marketing campaign launched for summer targets young families and includes a broader social media reach and new Nike products [4]. - Recent store tours indicated enhancements in merchandise assortment and in-store experience [4]. Group 3: Merchandise and Sales Performance - Academy has significantly upgraded its merchandise assortment, particularly through an expanded Nike product offering and the successful launch of the Jordan brand in 145 stores, which accounts for about 50% of total locations [5]. - The deployment of RFID scanners has improved inventory location efficiency, leading to better conversion and sales [6]. - Despite a forecasted decline in comparable sales of 2.0%, the expanded product range and effective inventory management are seen as positive factors [7][9]. Group 4: Future Outlook - The analyst forecasts 2025 EPS of $5.85, slightly above the FactSet consensus of $5.83, while projecting a mixed picture for sales trends amid inconsistent consumer spending [7]. - Significant improvements in merchandise offerings and a clear strategy to counteract tariff effects are noted, although the timing for a positive sales turnaround remains uncertain [8].

Industry Overview - The Zacks Leisure and Recreation Products industry is experiencing challenges due to the ongoing tariff war and soft macroeconomic data, but there is a positive trend in fitness product sales driven by growing health and fitness awareness [1][3] - The industry includes companies that provide a range of recreational products and services, thriving on economic growth that fuels consumer demand [2] Trends Impacting the Industry - The tariff war initiated by U.S. President Donald Trump is affecting the industry, with concerns about its impact on the U.S. economy amid inflation and global geopolitical tensions [3] - The golf industry is booming, with rising demand for golf equipment due to technological advancements and increased participation among young people, particularly in emerging markets like India and China [4] - There is robust demand for fitness-related products in the U.S., driven by health awareness and lifestyle changes, leading to increased investment in home workout equipment and digital fitness platforms [5] Industry Performance - The Zacks Leisure and Recreation Products industry currently holds a Zacks Industry Rank of 204, placing it in the bottom 17% of over 246 Zacks industries, indicating dismal near-term prospects [6][7] - The industry's earnings outlook is negative, with a 13.6% decrease in northbound earnings estimates since January 31, 2025 [8] Stock Market Performance - The industry has outperformed the S&P 500, with a collective growth of 49.8% over the past year compared to the S&P 500's 11.8% increase [10] Valuation Metrics - The industry trades at a forward price-to-earnings ratio of 35.08X, significantly higher than the S&P 500's 22.64X and the sector's 18.45X [13] Notable Companies - **Peloton**: Transitioning to a profitability-driven recovery, with high-margin subscription revenues contributing nearly 70% of total sales. Expected fiscal 2025 earnings growth of 72.9% and a stock increase of 84.8% in the past year [16][17] - **Playboy**: Benefiting from an asset-light licensing model and a rebound in its China licensing business, with a stock increase of 137.5% in the past year [20][21] - **Academy Sports and Outdoors**: Gaining from a growth strategy focused on brand partnerships and digital upgrades, but shares have declined by 2.3% in the past year with expected earnings decline of 1.7% for fiscal 2025 [24]

Financial Performance - Academy Sports + Outdoors delivered the best third quarter financial results in the Company's history[8] - Net sales reached $1.59 billion in Q3 2021[9] - Gross margin was $560.8 million with a rate of 35.2% in Q3 2021[10] - Pro Forma Adjusted Net Income was $164.1 million in Q3 2021[15] - Pro Forma Adjusted Diluted EPS was $1.75 in Q3 2021[15] Sales Growth - Comparable sales increased by 16.5% in Q3 2021, marking the ninth consecutive quarter of positive comparable sales[11] - E-commerce sales grew by 25.9% compared to Q3 FY2020 and 146.6% compared to Q3 FY2019[22, 24] - Sales penetration in e-commerce was 8.0% in Q3 2021, compared to 7.5% in Q3 2020 and 4.5% in Q3 2019[25] Capital Allocation and Guidance - The Company repurchased and retired 5.7 million shares for approximately $250 million during the quarter[18] - Year-to-date, the Company has repurchased 8.9 million shares for approximately $350 million[18] - The Company raises full-year comparable sales forecast from 14% to 17% to 17% to 18%[29]