Academy(US:ASO)2025-12-09 13:03Financial 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]