Academy Sports + Outdoors is seeing greater strength in footwear. “The best part of our business has been performance running,” said Matt McCabe, the outdoor retailer’s executive vice president and chief merchant, in a telephone interview Tuesday after the firm posted third quarter earnings results. “So really Nike’s Vomero, Brooks’ Glycerin, Asics’ Gel-Nimbus and New Balance’s FuelCell Rebel has been good for us.” More from WWD McCabe also noted Adidas’ new Adizero EVO SL Running shoe that also did well ...

Academy Sports & Outdoors (NasdaqGS:ASO) Q3 2026 Earnings Call December 09, 2025 10:00 AM ET Company ParticipantsPaul Lejuez - Manager DirectorEmily Ghosh - Equity Research AssociateJohn Heinbockel - Managing DirectorEric Cohen - VPAngus Kelleher - Equity Research AssociateSteve Lawrence - CEOCarl Ford - CFODan Aldridge - VP of Investor RelationsConference Call ParticipantsAnna Glaessgen - Senior Equity Research AnalystCristina Fernández - Managing Director and Senior Equity Research AnalystNone - AnalystNo ...

Financial Data and Key Metrics Changes - Net sales for Q3 2025 were approximately $1.38 billion, up 3% year-over-year, with a comparable store sales (comp) decrease of 0.9% [25][28] - Gross margin increased to 35.7%, up 170 basis points from the previous year, driven by merchandise margin growth and improved freight costs [9][26] - Operating income grew 9.7% to approximately $100 million, and diluted earnings per share increased over 14% to $1.05 [28][30] Business Line Data and Key Metrics Changes - Sports and recreation division saw a 6% increase, driven by growth in baseball, outdoor cooking, fitness equipment, and bicycles [9] - Apparel sales grew 3%, supported by strong performance from national brands like Nike and Jordan, as well as private brands [9] - Footwear business grew 2%, with strong sales from performance running brands [10] Market Data and Key Metrics Changes - The top two income quintiles (households earning over $100,000) now represent approximately 40% of sales, with traffic from these cohorts growing in the high single digits [12] - The company continues to see market share growth across key categories, including apparel, footwear, and sporting goods [13] - Firearms market share has grown for over 18 consecutive months, despite softness in the ammunition segment [13] Company Strategy and Development Direction - The company plans to open 20-25 new stores in 2026, focusing on legacy and existing markets [16][15] - E-commerce sales grew 22% in Q3, with a penetration rate of 10.4% of total sales, indicating a strong omnichannel strategy [16][25] - The company is investing in technology and talent to enhance the customer experience and drive growth in the dot-com business [17][18] Management's Comments on Operating Environment and Future Outlook - Management noted that consumers are shopping episodically and seeking value due to rising prices [4] - The company is optimistic about the upcoming holiday season, with strong promotional pricing and inventory management strategies in place [9][31] - Management expects trends of upper-income consumers trading into Academy to continue, despite challenges in the lower-income segments [50][51] Other Important Information - Free cash flow was negative $9 million due to tariff payments, but the company maintains strong liquidity with $290 million in cash [29][30] - The company has over $530 million remaining on its share repurchase authorization and plans to resume repurchases in Q4 [30] Q&A Session Summary Question: Can you discuss the average ticket increase and pricing dynamics? - Management indicated that average unit retails (AUR) were up mid- to high-single digits, while units per transaction (UPT) were down mid-single digits, reflecting a trade-off between AUR and unit sales [34][35] Question: What is the contribution of the Jordan brand at the store level? - The Jordan and Nike brands combined saw high single-digit comp growth, with plans to roll out more apparel and footwear in spring [42] Question: How does the company view the health of its customer base? - The company is seeing continued growth in upper-income consumers, while lower-income consumers are pulling back, but the overall customer base is becoming healthier [50][51] Question: How did Black Friday promotions compare to last year? - Promotions were consistent with last year, and the company is monitoring customer response to promotions as a key factor for the holiday season [65] Question: What are the potential pressure points for Q4 gross margin? - The health of the consumer and their response to promotions will be critical for Q4 gross margin outlook [61]

Core Insights - Academy Sports and Outdoors, Inc. (ASO) reported quarterly earnings of $1.14 per share, exceeding the Zacks Consensus Estimate of $1.07 per share, and up from $0.98 per share a year ago, representing an earnings surprise of +6.54% [1] - The company posted revenues of $1.38 billion for the quarter ended October 2025, which was 1.2% below the Zacks Consensus Estimate, and an increase from $1.34 billion year-over-year [2] - The stock has underperformed the market, losing about 15.1% since the beginning of the year compared to the S&P 500's gain of 16.4% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.06 on revenues of $1.75 billion, and for the current fiscal year, it is $5.78 on revenues of $6.1 billion [7] - The estimate revisions trend for Academy Sports and Outdoors was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Leisure and Recreation Products industry, to which Academy Sports and Outdoors belongs, is currently in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Net sales for Q3 2025 reached $14 billion, a 30% year-over-year increase[31] - E-commerce sales experienced substantial growth of 222%[31] - Gross margin expanded by 170 basis points[31] - GAAP EPS stood at $105, while adjusted EPS reached $114[31] - For the thirty-nine weeks ended November 1, 2025, net income was $24308 million, compared to $284816 million for the thirty-nine weeks ended November 2, 2024[45] Store Expansion and Growth Strategy - The company opened 11 new stores in Q3 2025[31] and a total of 24 stores in fiscal year 2025[14] - The company plans to open an additional 20-25 stores in 2026[14] - 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%+[16] - The company has opened 59 new stores over the past three+ years[14] Fiscal Year 2025 Guidance - The company updated its fiscal 2025 sales guidance to a range of -20% to flat[41] - The company anticipates a tax rate of 235% for the year[41] - The company projects GAAP net income between $365 million and $400 million, and adjusted net income between $385 million and $420 million[42]

While reporting financial results for the third quarter on Tuesday, sporting goods retailer Academy Sports and Outdoors, Inc. (ASO) narrowed its earnings, adjusted earnings, net sales and comparable sales guidance range for the full-year 2025, based on the results from the first three quarters and the expectations for the remainder of fiscal 2025.For fiscal 2025, the company now projects earnings in a range of $5.35 to $5.85 per share and adjusted earnings in a range of $5.65 to $6.15 per share on net sale ...

Financial Performance - Third quarter net sales increased by 3.0% to $1,383.7 million, while comparable sales decreased by 0.9%[2] - Third quarter diluted GAAP EPS was $1.05, reflecting a 14.1% increase compared to the previous year[2] - Year-to-date net sales reached $4,334.9 million, a 1.8% increase, with comparable sales down 1.4%[3] - Net sales for the thirteen weeks ended November 1, 2025, were $1,383,696, an increase from $1,343,330 for the same period in 2024, representing a growth of 3.0%[19] - Net income for the thirty-nine weeks ended November 1, 2025, was $243,080, down from $284,816 for the same period in 2024, reflecting a decrease of 14.7%[21] - Adjusted Net Income for the thirty-nine weeks ended November 1, 2025, was $260.24 million, a decrease of 13.4% from $300.73 million for the same period in 2024[29] - Adjusted EBITDA for the thirty-nine weeks ended November 1, 2025, was $463.74 million, down 8.8% from $508.58 million in the prior year[28] - Basic earnings per share for the thirteen weeks ended November 1, 2025, increased to $1.07, compared to $0.94 for the same period in 2024, a rise of 13.8%[19] Sales and Store Expansion - eCommerce sales rose by 22.2%, and new stores are comping high single digits[1] - The company opened eleven new stores in the third quarter, totaling 317 locations across 21 states, with plans for an additional 20-25 new stores in fiscal 2026[6] - The company expects to continue expanding its business and operations, including the opening of new stores and entering new markets[16] Guidance and Projections - The company narrowed its fiscal 2025 sales guidance, now expecting net sales between $6,025 million and $6,200 million[9] - Gross margin guidance for fiscal 2025 was raised to a low end of 34.3%[9] - The company expects Adjusted Net Income for the fiscal year ending January 31, 2026, to be in the range of $385.0 million to $420.0 million[31] - The projected Adjusted Earnings Per Common Share, Diluted, for the fiscal year ending January 31, 2026, is expected to be between $5.65 and $6.15[31] Cash Flow and Investments - Cash and cash equivalents as of November 1, 2025, were $289.5 million, a decrease of 2.2% from the previous year[4] - Net cash provided by operating activities for the thirty-nine weeks ended November 1, 2025, was $285.07 million, compared to $387.91 million in the same period of 2024, reflecting a decline of 26.4%[25] - Net cash used in investing activities for the thirty-nine weeks ended November 1, 2025, was $166.03 million, an increase from $136.45 million in the prior year[25] - Adjusted Free Cash Flow for the thirty-nine weeks ended November 1, 2025, was $119.04 million, down from $251.47 million in the same period of 2024[33] - Capital expenditures for the thirty-nine weeks ended November 1, 2025, were $170.15 million, compared to $135.87 million in the prior year, indicating increased investment[25] Inventory and Expenses - Merchandise inventories, net, rose to $1,701,163 as of November 1, 2025, compared to $1,524,978 as of November 2, 2024, indicating an increase of 11.5%[23] - Selling, general and administrative expenses for the thirty-nine weeks ended November 1, 2025, were $1,186,973, up from $1,087,287 for the same period in 2024, a rise of 9.1%[21] - Current liabilities increased to $1,227,029 as of November 1, 2025, from $1,212,014 as of November 2, 2024[23] - Gross margin improved to 35.7% for the thirteen weeks ended November 1, 2025, compared to 34.0% for the same period in 2024[19] - Operating income for the thirteen weeks ended November 1, 2025, was $100,392, compared to $91,474 for the same period in 2024, reflecting an increase of 9.9%[19] Share Repurchases - Share repurchases in the year-to-date totaled $99.9 million, a significant decrease of 63.9% compared to $276.6 million in the previous year[5]

Core Insights - Academy Sports and Outdoors, Inc. reported a 3.0% increase in net sales for the third quarter, reaching $1,383.7 million, while comparable sales decreased by 0.9% [1][2] - The company achieved a diluted GAAP EPS of $1.05, reflecting a 14% increase compared to the previous year [1][2] - eCommerce sales saw a significant increase of 22.2%, and the company opened eleven new stores across ten states [1][2][7] Financial Performance - **Third Quarter Results**: - Net sales: $1,383.7 million (up 3.0% from $1,343.3 million) - Comparable sales: (0.9)% (improved from (4.9)%) - Net income: $71.6 million (up 8.8% from $65.8 million) - Adjusted net income: $77.3 million (up 9.6% from $70.5 million) - Diluted EPS: $1.05 (up 14.1% from $0.92) [2][3] - **Year-to-Date Results**: - Net sales: $4,334.9 million (up 1.8% from $4,256.5 million) - Comparable sales: (1.4)% (improved from (5.9)%) - Net income: $243.1 million (down 14.6% from $284.8 million) - Adjusted net income: $260.2 million (down 13.5% from $300.7 million) - Diluted EPS: $3.57 (down 7.5% from $3.86) [3][4] Balance Sheet Highlights - As of November 1, 2025: - Cash and cash equivalents: $289.5 million (down 2.2% from $296.0 million) - Merchandise inventories: $1,701.2 million (up 11.6% from $1,525.0 million) - Long-term debt: $481.3 million (down 0.4% from $483.1 million) [4][5] Store Expansion - Academy opened eleven new stores in the third quarter, increasing its total to 317 locations across 21 states, with plans to open an additional 20-25 stores in fiscal 2026 [7][8] Guidance and Outlook - The company narrowed its sales guidance for fiscal 2025, adjusting the low end from -3.0% to -2.0% and the high end from +1.0% to flat. The gross margin guidance was raised to a low end of 34.3% from 34.0% [9][10]

Core Insights - Academy Sports and Outdoors, Inc. is set to release its third-quarter earnings results on December 9, with expected earnings of $1.06 per share, an increase from $0.98 per share in the same period last year [1] - The consensus estimate for quarterly revenue is $1.41 billion, compared to $1.34 billion a year earlier [1] Recent Performance - In the second quarter, the company reported adjusted earnings per share of $1.94, which fell short of the analyst consensus estimate of $2.16 [2] - Quarterly sales were $1.599 billion, reflecting a year-over-year increase of 3.3%, but also missed the expected $1.614 billion [2] - Following the earnings report, shares of Academy Sports and Outdoors rose by 1.9%, closing at $50.23 [2] Analyst Ratings - Evercore ISI Group analyst Greg Melich maintained an In-Line rating and raised the price target from $50 to $55 [5] - Barclays analyst Adrienne Yih initiated coverage with an Equal-Weight rating and a price target of $51 [5] - Guggenheim analyst John Heinbockel maintained a Buy rating with a price target of $60 [5] - Citigroup analyst Paul Lejuez downgraded the stock from Buy to Neutral, reducing the price target from $55 to $50 [5] - JP Morgan analyst Christopher Horvers maintained a Neutral rating and increased the price target from $54 to $56 [5]

Academy Sports and Outdoors, Inc. (NASDAQ:ASO) will release earnings results for the third quarter before the opening bell on Tuesday, Dec. 9.Analysts expect the Katy, Texas-based company to report quarterly earnings at $1.06 per share, up from 98 cents per share in the year-ago period. The consensus estimate for Academy Sports and Outdoors' quarterly revenue is $1.41 billion, compared to $1.34 billion a year earlier, according to data from Benzinga Pro.On Sept. 2, the company reported second-quarter adjust ...