Academy Sports + Outdoors (ASO) Reports First Quarter Results

Academy Sports + Outdoors has released its financial results for the first quarter of fiscal 2025, revealing both challenges and opportunities. Despite a slight decline in sales, the company remains optimistic about its strategic initiatives and future growth prospects.

ASO Reports First-Quarter Results, Missing on Expectations

Academy Sports + Outdoors, Inc. (NASDAQ: ASO) reported its financial results for the first quarter of fiscal 2025, which ended on May 3, 2025. The company experienced a slight decline in net sales, down 0.9% to $1.35 billion compared to $1.36 billion in the same period last year. Comparable sales also fell by 3.7%. Despite these declines, eCommerce sales increased by 10.2%, and new stores continued to perform well, contributing positively to the overall sales figures.

Academy’s earnings per share (EPS) for the quarter came in at $0.68, falling short of the market expectation of $0.91. This represents a 32.7% decrease from the previous year’s diluted EPS of $1.01. The company’s net income also saw a significant drop of 39.7%, amounting to $46.1 million compared to $76.5 million in the prior year.

The company’s performance was impacted by a challenging macroeconomic environment. However, Academy made strategic progress by opening five new stores in Pennsylvania, Maryland, Missouri, and North Carolina, bringing the total number of locations to 303. The introduction of the Jordan Brand was a major highlight, marking the biggest brand launch in the company’s history. Despite the economic headwinds, Academy managed to achieve a positive sales comp in April, reflecting sequential improvement throughout the quarter.

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Academy Sports + Outdoors Revises Fiscal 2025 Guidance

Looking ahead, Academy Sports + Outdoors has revised its fiscal 2025 guidance to account for multiple tariff scenarios, while maintaining the high end of its projections. The company expects net sales to range between $5.97 billion and $6.27 billion, compared to original guidance of $6.09 billion to $6.27 billion. The adjusted earnings per share are projected to be between $5.45 and $6.25, slightly down from the previous range of $5.75 to $6.20.

Academy is taking proactive measures to mitigate the impact of tariffs by diversifying its supply chain and reducing reliance on China. The company aims to decrease its cost exposure to China from 9% of total cost of goods sold to around 6% by the end of fiscal 2025. This strategic move is expected to help maintain margin integrity while offering value to customers through its private brand portfolio, which includes high-margin options like BCG, Magellan Outdoors, R.O.W., and Freely.

Despite the economic uncertainties, Academy remains committed to its growth initiatives, including plans to open 20 to 25 new stores in fiscal 2025. The company also continues to focus on generating strong free cash flow, which will support its growth strategies and shareholder returns through dividends and share repurchases. As Academy navigates the evolving landscape, its strategic initiatives and focus on value delivery position it to capture market share and drive long-term growth.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.