Academy Sports + Outdoors reported third‑quarter fiscal 2025 results that included net sales of $1.3837 billion, a 3.0% year‑over‑year decline driven by a 0.9% drop in comparable sales but offset by a 22.2% surge in e‑commerce revenue. The company’s e‑commerce penetration rose 120 basis points, reflecting a strategic shift toward digital channels that has become a key growth engine for the retailer.
Diluted GAAP earnings per share reached $1.05, beating the consensus estimate of $1.07 by $0.02, while adjusted diluted EPS of $1.14 surpassed the $1.07 expectation by $0.07. The earnings beat was largely a result of a 170‑basis‑point expansion in gross margin to 35.7%, driven by pricing power in high‑margin categories such as Nike and Jordan apparel and a favorable mix shift toward higher‑margin product lines. Management credited disciplined cost control and efficient inventory management for sustaining profitability amid a challenging consumer environment.
Revenue fell short of the $1.40 billion consensus by $16.3 million, a 1.2% miss. The shortfall was attributable to a 0.9% decline in comparable sales, which reflects softer demand in legacy product categories and increased price sensitivity among lower‑income consumers. However, the company’s new‑store performance remained strong, with eleven openings during the quarter that added 317 locations across 21 states, and the continued acceleration of its higher‑income customer base helped cushion the revenue dip.
Guidance for the full fiscal year was narrowed to net sales of $6.025 billion–$6.200 billion, a tighter range that signals management’s confidence in maintaining profitability while acknowledging near‑term macro uncertainty. The company also raised the low end of its gross‑margin guidance to 34.3% and set adjusted diluted EPS guidance of $5.65–$6.15, reflecting expectations of continued margin expansion and cost discipline.
CEO Steve Lawrence emphasized that the company is “accelerating underlying growth strategies” despite an uncertain economic backdrop, noting that consumers are shopping episodically and seeking value. CFO Carl Ford highlighted the company’s ability to navigate a warm October and a challenging consumer environment, underscoring the resilience of its omnichannel strategy and the strength of its national brand portfolio.
The results underscore Academy Sports + Outdoors’ ability to generate margin expansion and earnings growth even as it faces headwinds in comparable sales, positioning the company to capitalize on higher‑income customer segments and a robust e‑commerce platform while maintaining a disciplined cost structure.
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