Academy(US:ASO)2025-12-09 21:11Store Operations - As of November 1, 2025, the company operated 317 stores, an increase from 293 stores as of November 2, 2024, representing an 8.2% growth in store count[85]. - The company opened 11 new stores in the third quarter of 2025, contributing $48.6 million in net sales, with a total of 24 new stores opened since the end of the third quarter of 2024[107]. - 24 new stores opened since the end of Q3 2024, generating $110.3 million in net sales year-to-date 2025, with 58 new stores opened since 2022[116]. - The company expects new stores to be a key driver of growth in net sales and gross margin, with a focus on off-mall locations[97]. Sales Performance - Net sales for the 2025 third quarter were influenced by a product assortment focusing on outdoor, sports, recreation, apparel, and footwear, which accounted for 32%, 21%, 25%, and 22% of net sales respectively[82]. - The company reported an increase in comparable sales, which includes both in-store and e-commerce sales, reflecting positive consumer trends and effective inventory management[88]. - Net sales increased by $40.4 million, or 3.0%, in the third quarter of 2025 compared to the same period in 2024, driven by a 5.6% increase in the sports and recreation merchandise division[106]. - For the year-to-date 2025, net sales increased by $78.4 million, or 1.8%, compared to year-to-date 2024, with growth in all merchandise divisions[115]. E-commerce Performance - E-commerce sales are a significant component of the company's revenue, with all transactions through the website or mobile app counted towards comparable sales[89]. - E-commerce net sales represented 10.4% of merchandise sales in the third quarter of 2025, up from 8.8% in the prior year, with a 22.2% increase in e-commerce net sales year-over-year[108]. - E-commerce net sales increased by 16.1% year-to-date 2025, representing 10.5% of merchandise sales compared to 9.2% in year-to-date 2024[117]. Financial Metrics - Adjusted EBITDA and other non-GAAP metrics are used to evaluate business performance and inform strategic decisions[91]. - Gross margin increased by $36.7 million, or 8.0%, to $493.4 million in the third quarter of 2025, with gross margin as a percentage of net sales rising from 34.0% to 35.7%[109]. - Gross margin increased by $57.8 million, or 3.9%, to $1,529.0 million for year-to-date 2025, with a gross margin percentage increase of 70 basis points to 35.3%[118]. - Adjusted Net Income for the thirty-nine weeks ended November 1, 2025, was $260.2 million, down from $300.7 million for the same period in 2024[129]. Expenses - Selling, general and administrative (SG&A) expenses increased by $27.8 million, or 7.6%, to $393.0 million in the third quarter of 2025, primarily due to strategic investments in new stores and technology[109]. - SG&A expenses rose by $99.7 million, or 9.2%, to $1,187.0 million for year-to-date 2025, primarily due to strategic investments of $85.0 million[119]. Cash Flow and Capital Expenditures - Net cash provided by operating activities for the thirty-nine weeks ended November 1, 2025, was $285.066 million, a decrease of $102.8 million compared to the same period in 2024[143][144]. - Total capital expenditures for the thirty-nine weeks ended November 1, 2025, amounted to $170.154 million, an increase from $135.866 million in the same period of 2024[142]. - The company expects capital expenditures for fiscal 2025 to be between $180 million and $210 million, with 60% allocated to new stores[142]. Debt and Liquidity - As of November 1, 2025, the company's total long-term debt is $99.213 million for term loans and $460 million for notes, with a total of $8.386 million from the ABL Facility[133][135]. - The company has a minimum available borrowing capacity of $953.921 million as of November 1, 2025, with no outstanding borrowings on the ABL Facility[136]. - Interest expense remained relatively constant in the third quarter of 2025 compared to the same period in 2024[110]. - Interest expense decreased by $0.6 million, or 2.3%, for year-to-date 2025, attributed to lower interest rates and a reduced outstanding balance on the Term Loan[121]. Shareholder Returns - The company repurchased 2,080,772 shares at an average price of $47.59 per share, totaling $99.031 million in the first quarter of 2025[140]. - Quarterly dividends paid for the year-to-date 2025 totaled $26.028 million, with a dividend of $0.13 per share declared for the fiscal quarter ended November 1, 2025[141]. - The company had $536.5 million remaining for share repurchases under the 2024 Share Repurchase Program as of November 1, 2025[139].