This article first appeared on GuruFocus.
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Net Sales: Approximately $1.6 billion, up 3.3% year-over-year.
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Comparable Sales: Increased by 0.2%.
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Gross Margin: 36%, down 2 basis points from last year.
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E-commerce Growth: Approximately 18% increase in Q2.
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SG&A Expenses: 25.3% of sales, increased by $36 million or 150 basis points.
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Operating Income: $172 million.
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Diluted Earnings Per Share: $1.85.
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Adjusted Earnings Per Share: $1.94.
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Inventory Per Store: Units up 4.6%, dollars up 8.2%.
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Cash Position: $301 million with a $1 billion undrawn revolver.
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Free Cash Flow: $21.7 million in Q2.
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Store Count: Ended the quarter with 306 stores in 21 states.
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New Stores Opened: Three new locations in Fort Walton Beach, Florida, Virginia, and Morgantown, West Virginia.
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Capital Expenditure: Approximately $60 million in strategic initiatives.
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Guidance Update: Comp sales guidance tightened to a range of -3% to +1% for fiscal 2025.
Release Date: September 02, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Academy Sports and Outdoors Inc (NASDAQ:ASO) reported a 3.3% increase in net sales for the second quarter, with a comp increase of 0.2%, showing improvement from previous quarters.
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The company’s e-commerce channel experienced significant growth, with a positive comp of approximately 18%, indicating successful digital initiatives.
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ASO opened three new stores during the quarter, contributing to its growth strategy, and plans to open 20 to 25 new locations in 2025.
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The company saw meaningful market share gains across key categories such as apparel, footwear, sporting goods, and outdoor cooking.
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ASO’s loyalty program, myAcademy Rewards, has added over 12 million customers, enhancing customer engagement and driving sales uplift.
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The company experienced a decline in transactions by 1.4%, indicating potential challenges in customer foot traffic.
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SG&A expenses increased by 150 basis points, driven by new store growth and technology investments, impacting overall profitability.
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ASO faced challenges with seasonal categories such as swim and summer footwear due to a cooler and wetter start to the summer.
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The lower income consumer segment continues to show traffic erosion, although the pace of decline has slowed compared to previous quarters.
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The company is dealing with tariff impacts, which have necessitated price adjustments and strategic sourcing changes to mitigate cost pressures.
Q: Can you discuss the consumer behavior post back-to-school and whether the valleys between shopping events might lessen later in the year? A: Steven Lawrence, CEO: We continue to see episodic shopping patterns. We had a positive comp during back-to-school, which was encouraging. There was a slight pullback post back-to-school, attributed to less clearance activity around Labor Day and a shift in hunting season. However, we are optimistic about the remainder of the quarter as we lap softer comps from last year.
Q: How are tariffs impacting ticket prices, and will this pressure continue into 2026? A: Steven Lawrence, CEO: AURs were up low to mid-single digits, contributing to a 1.5% increase in average ticket. We expect more price adjustments in the back half of the year as tariffs impact costs. Our goal is to complete necessary price adjustments by year-end, but it’s a fluid situation. We believe our value proposition remains strong despite higher prices.
Q: Your guidance implies good operating leverage in the second half. What are the assumptions around SG&A and tariffs? A: Earl Ford, CFO: We expect about 100 basis points of SG&A deleverage for the full year, driven by growth initiatives. For tariffs, we’ve mitigated impacts through various strategies, including partnering with factories, diversifying sourcing, and adjusting prices. We believe these actions will offset most tariff impacts.
Q: Can you provide more detail on the performance of Nike and Jordan brands? A: Steven Lawrence, CEO: We’re excited about the performance of Nike and Jordan, both showing double-digit growth. While we don’t have exclusive products, we have access to premium products like the Nike 18 and 270s, which are performing well. The focus is on offering higher-end products more broadly, which is resonating with customers.
Q: How is the promotional environment affecting your business, and is merchandise margin benefiting from the mix? A: Steven Lawrence, CEO: The promotional environment is slightly more intense than last year but not as aggressive as pre-pandemic levels. Customers are responding well to promotions, aggregating purchases during promo periods. While apparel and footwear, which are higher-margin categories, performed well, the margin mix was consistent across categories in Q2.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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