Financial Data and Key Metrics Changes - The company reported revenues of $63.9 million for Q2 2025, exceeding guidance of $51 million to $61 million, but reflecting an 11.6% sequential decline and a 42% year-over-year decline [22][23] - Gross margin improved to 72.3%, a 300 basis point increase year-over-year, exceeding the long-term target of 65% to 70% [5][23] - Adjusted EBITDA was $4.6 million, marking the seventh consecutive quarter of positive adjusted EBITDA [22][28] - The company achieved a cumulative $39.5 million in adjusted EBITDA over the past seven quarters [6] Business Line Data and Key Metrics Changes - Digital revenue decreased by 7.5% sequentially to $39.7 million and declined 32.5% year-over-year, with digital subscribers down 7.8% sequentially to 940,000 [25][26] - Nutrition revenue fell 15.6% sequentially to $24.2 million and decreased 51.8% year-over-year, with nutrition subscriptions down 12.5% sequentially to 70,000 [25][26] - Digital gross margin was 87.7%, an increase from the prior quarter and year, while nutrition gross margin was 51.4%, reflecting a decline due to promotional offerings [26] Market Data and Key Metrics Changes - The company is transitioning from a multilevel marketing (MLM) model to an omnichannel model, which has impacted revenue in the near term [22][23] - The anticipated revenue split moving forward is approximately 63% digital and 37% nutrition [31] Company Strategy and Development Direction - The company plans to launch Shakeology in retail in early 2026, marking its first entry into brick-and-mortar sales [7][45] - A new P90X nutritional line and Insanity branded supplements are also set for retail launch, creating cross-marketing opportunities [8][20] - The strategic focus is on building a diverse product portfolio and leveraging brand equity to drive growth [9][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that while 2025 may see temporary revenue declines, it is building towards significant growth opportunities [7][10] - The company is focused on disciplined execution and believes it is well-positioned for long-term success [11][21] - Management expressed confidence in achieving positive free cash flow for the full year of 2025 for the first time since 2020 [6][30] Other Important Information - The company reduced its revenue breakeven point from approximately $900 million in 2022 to about $200 million in 2025 [6] - Operating expenses decreased by 9.1% sequentially and 41.5% year-over-year, reflecting the shift away from the MLM model [27] Q&A Session Summary Question: What drove the higher gross margin in the quarter? - The higher gross margin was driven by reduced production spend and fewer fixed costs allocated to production [34] Question: What is the expected level of selling and marketing expenses going forward? - Selling and marketing expenses have decreased significantly since exiting the MLM model, with a goal to reduce them to the mid-thirties percentage of revenue [36][37] Question: Are there plans to roll out new supplements to complement the nutrition business? - Yes, the company plans to launch new nutritional products in retail starting in 2026, including Shakeology and P90X supplements [45][46] Question: What is the status of the nutrition retail launch? - The company is preparing sales presentations for major retailers and expects to begin retail sales in early 2026 [55] Question: Will the Shakeology product have new packaging for retail? - Yes, Shakeology will have a complete packaging refresh designed for retail, highlighting its major brand status [58][59]

Core Insights - Academy Sports + Outdoors is committed to expanding its presence by opening 20-25 new stores in fiscal 2025, having recently opened two new locations and planning another in Morgantown, W.Va [1][4] - The company has surpassed 300 total stores as of Q1 2025, reinforcing its mission to provide quality sporting goods and outdoor gear to families across the United States [1][10] Expansion Plans - In 2023, Academy opened 14 new stores across six states, followed by 16 new stores in 2024 across ten states, including its first locations in Ohio [4] - As of 2025, Academy has opened 7 new stores in six states, marking its first entries in Pennsylvania and Maryland [4] Community Engagement - Academy celebrated new store openings by hosting donation shopping sprees with local non-profits, enhancing community involvement and support [3][4] - The company's donations have positively impacted local communities by providing essential equipment and promoting youth participation in sports [4] Product Offering - Each Academy store offers a wide range of products including apparel, footwear, sports equipment, and outdoor gear from top national brands at competitive prices [2][5] - Academy also features exclusive private label brands that provide quality outdoor apparel and equipment [6] Customer Experience - The company provides free services such as grill and bike assembly, and offers a rewards program, myAcademy, which includes various customer benefits [8][9]

Core Viewpoint - Meta is planning to expand its retail presence by opening physical storefronts and hiring retail employees to enhance sales of its devices, which currently includes only one store on its California campus [1][4]. Group 1: Retail Expansion Plans - The company is leading a project to increase its retail footprint, although details on the number of new stores and their opening timeline remain undisclosed [2]. - Meta Store, the only retail location, was opened in Burlingame, California in 2022, designed for customers to interact with Meta products through demos similar to Apple's retail strategy [2][3]. Group 2: Product Offerings - At the Meta Store, customers can try out various products including Meta Portal, Ray-Ban Stories (smart glasses), and Meta Quest (virtual reality headset) [3]. - A pop-up store named Meta Lab was also opened in Los Angeles, allowing customers to test smart glasses before purchasing, although it is currently closed [3]. Group 3: Sales Performance and Strategy - Meta sold over 1 million pairs of smart glasses last year, which was viewed as a positive start, but not sufficient to significantly impact the business [5]. - The company's chief technology officer emphasized a mission to enhance sales, retention, and engagement, with plans to introduce more AI-powered wearable devices this year [5].

Financial Data and Key Metrics Changes - The company reported revenues of €574 million for the second quarter, representing a 19% increase year-over-year and an 18% increase in constant currency, exceeding the annual guidance of 15% to 17% [8][18] - Gross margin improved to 57.7%, up 140 basis points year-over-year, driven by better cost absorption and selected price adjustments [19] - Adjusted EBITDA for the quarter was €200 million, up 23% year-over-year, with a margin of 34.8%, an increase of 110 basis points [20] - Adjusted net profit reached €103 million, a 33% increase year-over-year, with adjusted EPS rising to €0.55 from €0.41 [20] Business Line Data and Key Metrics Changes - Revenue growth was balanced between B2B and DTC channels, with B2B up 18% and DTC up 17% in constant currency [10][18] - Closed toe silhouettes revenue grew at twice the rate of the overall group, increasing their share of business by 400 basis points [11] - The DTC channel accounted for 24% of total business, consistent with the prior year [18] Market Data and Key Metrics Changes - In the Americas, revenue increased by 23% in reported currency and 20% in constant currency, with strong growth in both B2B and DTC channels [12] - EMEA region saw a 12% revenue growth, with DTC outpacing B2B growth by 1.5 times [13] - The APAC region was the fastest growing segment, with a 30% increase driven by strong DTC growth [14] Company Strategy and Development Direction - The company aims to expand its retail presence, targeting 100 owned stores by the end of the fiscal year, having opened six new stores in the second quarter [10][11] - The strategy includes tapping into white spaces such as closed toe shoes and expanding in the APAC region [10][14] - The company is confident in its ability to manage inflationary pressures and tariffs due to its vertical integration and European sourcing [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience amid macroeconomic uncertainties, viewing the situation as an opportunity rather than a risk [7][34] - The company expects to meet or exceed its financial targets for fiscal year 2025, with adjusted EBITDA margin guidance raised to 31.3% to 31.8% [25][29] - Management noted that consumer demand remains strong, with no significant changes observed despite macroeconomic pressures [35][36] Other Important Information - The company ended the quarter with cash and cash equivalents of €235 million and improved its inventory to sales ratio to 36% [21] - Capital expenditures for the quarter were approximately €21 million, with plans to invest around €80 million for the year [21][80] Q&A Session Summary Question: Confidence in outlook despite macro uncertainty - Management views the current situation as an opportunity and is confident in offsetting tariff impacts [34][35] Question: D2C strength and implied top line deceleration - Management acknowledged reduced visibility in the second half but emphasized strong order books and growth in closed toe products [43][44] Question: Plans for tariff mitigation - The company is less exposed to tariffs due to European sourcing and has pricing flexibility without impacting consumer demand [50][52] Question: Gross margin drivers and retail store rollout - Management expects gross margin improvements from better absorption and pricing adjustments, with ongoing retail expansion [58][60] Question: Membership growth and its impact on DTC sales - Membership has grown significantly, contributing to higher average purchases and overall DTC performance [117][132]