Academy Sports and Outdoors Earnings Call Transcripts
Fiscal Year 2027
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Q2 2026 saw 3% sales growth to $1.6B, with e-commerce up 12.8% and gross margin boosted by tariff refunds. Guidance for FY26 is reaffirmed, targeting 3–5% sales growth and higher EPS, while strategic investments in pricing, new stores, and loyalty programs drive momentum.
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Q1 2026 saw 6.7% sales growth and 2.9% comp increase, led by strong e-commerce and outdoor categories. Guidance was raised for the year, with initiatives in loyalty, omni-channel, and new categories expected to offset ongoing inflation and tariff pressures.
Fiscal Year 2026
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Lower-income customers are under pressure, while higher-income shoppers are increasing their share. Store expansion focuses on suburbs and new markets, with strong new store performance and ongoing legacy store refreshes. Margin outlook is stable, with investments in technology and AI to drive efficiency and support long-term growth.
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Management outlined a five-year plan to grow sales to $8B through new store expansion, e-commerce, and loyalty initiatives, targeting 5% annual sales growth and margin expansion. Market share gains are supported by external data, with growth driven by youth sports, outdoor, and Westernwear categories.
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Aiming for $8B in sales and $9 EPS in five years, the plan centers on 125 new stores, 70% e-commerce growth, and omni-channel expansion. Strategic focus includes rural market entry, loyalty integration, tech investments, and retail media, all underpinned by a value-driven approach.
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Q4 and FY25 saw sales growth, margin expansion, and strong digital and loyalty gains, despite macro headwinds. FY26 guidance calls for 2–5% sales growth, margin improvement, and continued investment in stores, digital, and premium brands, with macro events and internal initiatives expected to drive results.
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Q3 net sales rose 3% to $1.38B, with gross margin up 170 bps and e-commerce up 22%. High-income customers now drive 40% of sales, new stores and premium brands are fueling growth, and FY25 comp sales guidance is narrowed to -2% to flat.
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Q2 sales rose 3.3% to $1.6B, with comp sales up 0.2% and e-commerce up 18%. Gross margin held at 36%, and guidance for FY25 comp sales tightened to -3% to +1%. Higher-income consumers are driving growth, and tariff mitigation strategies are in place.
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Q1 sales declined 0.9% year-over-year to $1.35B, but e-commerce grew 10% and April comps turned positive, driven by new brand launches and higher-income customer growth. Gross margin improved to 34%, and FY25 guidance was widened to reflect tariff and consumer uncertainties.
Fiscal Year 2025
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Positive comp sales and e-commerce growth were driven by new store strategies and brand launches, especially Nike and Jordan. Inventory and margin management offset tariff impacts, while capital allocation remains focused on reinvestment and shareholder returns.
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Q4 net sales were $1.68B, flat year-over-year when adjusted for the extra week, with comp sales down 3%. Outdoor led segment growth, and higher-income customers drove larger baskets. 2025 guidance anticipates net sales of $6.1–$6.3B, with new store growth, major brand launches, and technology investments expected to drive improvement.
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Q3 results met guidance with comp sales down 4.9% and strong free cash flow. Outdoor led category growth, while apparel lagged due to weather. FY 2024 guidance narrowed, with continued investment in new stores, omnichannel, and a major Nike launch planned for 2025.
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Q2 sales declined 2.2% year-over-year to $1.55 billion, with a negative 6.9% comp, impacted by weather and distribution issues. Gross margin improved to 36.1%, and new store growth, omni-channel expansion, and a new loyalty program are driving long-term strategy.
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Q1 sales declined 1.4% year-over-year with comparable sales down 5.7%, but omni-channel and outdoor categories showed strength. The company reiterated full-year guidance, expects improvement in the back half, and is investing in new stores, digital, and loyalty initiatives.
Fiscal Year 2024
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Moderate-income consumers remain under pressure, driving value-seeking and episodic shopping. Strategic initiatives include targeted promotions, a new loyalty program, and digital expansion. Store growth, operational efficiency, and premium assortment are key to long-term growth.