Financial Data and Key Metrics Changes - Net sales for Q2 were approximately $1.6 billion, up 3.3% year-over-year, with a comparable sales increase of 0.2% [24][26] - Gross margin was 36%, down 2 basis points from the previous year, while merchandise margin improved by 40 basis points [26][28] - Operating income was $172 million, and diluted earnings per share were $1.85, with adjusted earnings per share at $1.94 [27][28] - Inventory per store increased, with units per store up 4.6% and dollars per store up 8.2% [28] Business Line Data and Key Metrics Changes - The e-commerce channel saw a positive comparable sales increase of approximately 18% during Q2, building on a 10% increase in Q1 [24][10] - Performance across major business categories was consistent, with footwear, apparel, sports and recreation, and outdoor all showing low single-digit increases [10][11] - Seasonal categories like swim and summer footwear experienced a slow start but rebounded in late June and July [11] Market Data and Key Metrics Changes - Strong double-digit growth in foot traffic was observed among customers in the top two income quintiles (households making over $100,000) [12][13] - Traffic share remained flat among middle-income consumers (households making $50,000 to $100,000), while there was erosion in lower-income cohorts (households making less than $50,000) [12][13] - Market share data indicated meaningful gains across key businesses such as apparel, footwear, and sporting goods [13] Company Strategy and Development Direction - The primary growth strategy involves opening new stores, with three new locations opened in Q2, bringing the total to 306 stores across 21 states [15] - The company aims to grow its e-commerce business by improving site navigation, order fulfillment, and expanding product assortment [16][18] - Initiatives to enhance store productivity include adding desirable brands and implementing new technology like RFID scanners [19][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of inflation on consumer behavior, noting a trade-down effect among lower-income consumers [12][13] - The company remains optimistic about future performance, citing positive momentum and the effectiveness of strategic initiatives [30][31] - Management is closely monitoring tariff impacts and has implemented strategies to mitigate these effects [23][46] Other Important Information - The company has maintained strong liquidity with $300 million in cash and an undrawn $1 billion revolver [28] - Capital allocation remains disciplined, with investments in inventory, dividends, and strategic initiatives totaling approximately $148.7 million in Q2 [29] Q&A Session Summary Question: Insights on consumer behavior post back-to-school period - Management noted episodic shopping patterns and expressed optimism about momentum continuing into the remainder of the quarter [34][35] Question: Impact of tariff pricing on average ticket - Average unit retails (AURs) were up low to mid-single digits, with expectations for further price adjustments in the back half of the year [36][37] Question: Guidance on SG&A and operating leverage - Management indicated expectations for continued moderation of SG&A deleverage, with a focus on maintaining investment in growth initiatives [41][42] Question: Promotional environment and merchandise margin - The promotional environment remains competitive, with higher take rates observed during promotional events [84] Question: Performance of higher-income consumers - The top two income quintiles showed double-digit growth in traffic, offsetting declines in lower-income segments [86][87] Question: Expansion of Nike and Jordan assortments - The company has significantly expanded its Jordan brand assortment and is seeing strong performance from both Nike and Jordan products [92][100]

Financial Data and Key Metrics Changes - Net sales for Q2 2025 were approximately $1.6 billion, up 3.3% year-over-year, with a comparable sales increase of 0.2% [5][18] - Gross margin was 36%, down two basis points from the previous year, while merchandise margin improved by 40 basis points [19][20] - Operating income was $172 million, and diluted earnings per share was $1.85, with adjusted earnings per share at $1.94 [19][20] Business Line Data and Key Metrics Changes - The dot-com business grew approximately 18% during Q2, contributing positively to overall sales [5][18] - Performance across major categories was consistent, with low single-digit increases in footwear, apparel, sports and recreation, and outdoor categories [6][10] - Seasonal categories like swim and summer footwear experienced a slow start but rebounded in late June and July [6][10] Market Data and Key Metrics Changes - Strong double-digit growth in foot traffic was observed among consumers in the top two income quintiles (households making over $100,000) [8][9] - Traffic share remained flat in the middle-income segment ($50,000 to $100,000), while there was erosion in the lower-income cohort (under $50,000), though at a slower pace than in Q1 [9][10] Company Strategy and Development Direction - The company’s primary growth strategy includes opening new stores, with three new locations opened in Q2, bringing the total to 306 stores [10][11] - Focus on enhancing the dot-com business through improved site navigation, order fulfillment, and expanded product assortment [12][15] - Initiatives to improve existing store productivity include adding popular brands and implementing new technology like RFID handheld scanners [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business momentum, particularly in light of positive comp sales and market share gains [10][23] - The company is closely monitoring consumer behavior in response to inflation and pricing adjustments, with a focus on maintaining a strong value proposition [8][32] - Future guidance indicates a tightening of the low end of comp sales expectations, now ranging from negative 3% to positive 1% for the year [22][23] Other Important Information - The company has taken measures to mitigate tariff impacts, including adjusting unit buys and optimizing pricing strategies [17][39] - Inventory levels are expected to normalize as the year progresses, with a current elevated inventory per store [20][22] Q&A Session Summary Question: Insights on consumer behavior post back-to-school period - Management noted continued episodic shopping patterns, with positive comps during back-to-school but a slight pullback afterward attributed to less clearance activity [26][27] Question: Impact of tariff pricing on average ticket - Average unit retails (AURs) were up low to mid-single digits, with expectations for further price adjustments in the back half of the year [29][30] Question: Guidance on SG&A and operating leverage - SG&A is expected to deleverage by approximately 100 basis points for the full year, with continued investments in growth initiatives [35][36] Question: Promotional environment and merchandise margin - The promotional environment remains competitive, with higher take rates on promotions, but merchandise margin has not significantly benefited from product mix changes [73][74] Question: Performance of higher-income consumers - The top two income quintiles showed double-digit traffic growth, which is expected to continue driving comp growth [75][76] Question: Expansion of Nike and Jordan assortments - The company has significantly expanded its Jordan assortment since launch, with plans for further expansion in the coming year [80][86]

Financial Data and Key Metrics Changes - Net sales for Q2 2025 were approximately $1.6 billion, an increase of 3.3% year-over-year, with a comparable sales increase of 0.2% [7][23] - Gross margin was 36%, down 2 basis points from the previous year, while merchandise margin improved by 40 basis points [24][10] - Operating income was $172 million, and diluted earnings per share were $1.85, with adjusted earnings per share at $1.94 [25][26] Business Line Data and Key Metrics Changes - The e-commerce channel saw a positive comparable sales increase of approximately 18% during Q2, building on a 10% increase in Q1 [8][23] - Performance across major categories was consistent, with footwear, apparel, sports and recreation, and outdoor categories all showing low single-digit increases [8][10] - Seasonal categories like swim and summer footwear experienced a slow start but rebounded in late June and July [9][10] Market Data and Key Metrics Changes - Strong double-digit growth in foot traffic was observed among consumers in the top two income quintiles (households earning over $100,000) [12] - Traffic share remained flat among middle-income consumers (households earning $50,000 to $100,000), while there was erosion in lower-income cohorts (households earning less than $50,000) [12][13] - Market share gains were noted across key businesses such as apparel, footwear, sporting goods, fishing, and outdoor cooking [12][13] Company Strategy and Development Direction - The company’s primary growth strategy includes opening new stores, with three new locations opened in Q2, bringing the total to 306 stores across 21 states [14] - The focus on enhancing the e-commerce business includes streamlining site navigation, improving order fulfillment, and expanding product assortment [15][20] - Initiatives to improve existing store productivity include adding desirable brands and implementing new technology like RFID scanners [17][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of inflation on consumer behavior, noting a trade-down effect where consumers are seeking value [11][12] - The company remains optimistic about the momentum in the business, expecting continued positive trends in sales and market share [28][29] - Management is confident in their strategies to mitigate tariff impacts and maintain a strong value proposition for customers [22][46] Other Important Information - The company ended the quarter with $300 million in cash and maintained strong liquidity with an undrawn $1 billion revolver [26] - Free cash flow for Q2 was $21.7 million, with significant investments made in inventory and strategic initiatives [27] - The company has over $530 million remaining on its current share repurchase authorization [28] Q&A Session Summary Question: Insights on consumer behavior post back-to-school period - Management noted episodic shopping patterns and expressed optimism about momentum continuing into the remainder of the year despite a slight pullback after back-to-school [31][33] Question: Impact of tariff pricing on average ticket - Average unit retails (AURs) were up low to mid-single digits, with expectations for further price adjustments in the back half of the year [35][36] Question: Guidance on SG&A and operating leverage - Management indicated a commitment to disciplined spending, with expectations for SG&A deleverage to moderate in the back half of the year [40][50] Question: Promotional environment and merchandise margin - The promotional environment remains competitive, with higher take rates observed during promotional events, while merchandise margins are expected to benefit from a favorable mix [79][80] Question: Performance of higher income consumer segments - The top two income quintiles showed double-digit growth in traffic, which is expected to continue driving comp growth [81][83] Question: Expansion of Nike and Jordan assortments - The company has significantly expanded its Jordan brand assortment and is seeing strong performance from both Nike and Jordan products [87][90]

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]