Academy Sports + Outdoors Reports Second Quarter Fiscal 2025 Results; Updates Guidance

Second Quarter Sales Increase 3.3%; Comparable Sales Increase 0.2%

eCommerce Sales Increase 17.7%; New Stores Comping Positive Mid-Single Digits

Second Quarter Diluted GAAP EPS of $1.85

Opened Three New Stores in Florida, Virginia and West Virginia

Company Maintains High End of Guidance Range; Raises Low End

KATY, Texas, Sept. 02, 2025 (GLOBE NEWSWIRE) -- Academy Sports and Outdoors, Inc. (NASDAQ:ASO) ("Academy" or the "Company") today announced its financial results for the second quarter ended August 2, 2025.

"We were pleased to see sales inflect to a positive comp in the second quarter, driven by steady improvements in the business that are a result of the progress we continue to make against our strategic initiatives. Customers are gravitating to our diversified assortment and our value proposition is resonating with them, which has allowed us to pick up market share in the first half of the year," said Steve Lawrence, Chief Executive Officer. "As we head into the back half of the year, we believe momentum is building in the business and we are confident in our strategy and ability to come out of this year better positioned than ever to serve our customers and drive long-term growth."

Second Quarter Operating Results                           ($ in millions, except per share data)	Thirteen Weeks Ended								Change
	August 2, 2025				August 3, 2024				%
Net sales	$	1,599.8			$	1,549.0			3.3		%
Comparable sales		0.2	%			(6.9	)	%
Income before income tax	$	164.8			$	186.5			(11.6	)	%
Net income	$	125.4			$	142.6			(12.1	)	%
Adjusted net income (1)	$	131.3			$	148.6			(11.6	)	%
Earnings per common share, diluted	$	1.85			$	1.95			(5.1	)	%
Adjusted earnings per common share, diluted (1)	$	1.94			$	2.03			(4.4	)	%

(1) Adjusted net income and Adjusted earnings per common share, diluted are non-GAAP measures. See "Non-GAAP Measures" and "Reconciliations of GAAP to Non-GAAP Financial Measures" below for reconciliations of non-GAAP financial measures to their most directly comparable GAAP financial measures.

Year-to-Date Operating Results ($ in millions, except per share data)	Twenty-Six Weeks Ended								Change
	August 2, 2025				August 3, 2024				%
Net sales	$	2,951.2			$	2,913.2			1.3		%
Comparable sales		(1.7	)	%		(6.4	)	%
Income before income tax	$	227.9			$	284.2			(19.8	)	%
Net Income	$	171.5			$	219.1			(21.7	)	%
Adjusted net income (1)	$	182.9			$	230.3			(20.6	)	%
Earnings per common share, diluted	$	2.52			$	2.93			(14.0	)	%
Adjusted earnings per common share, diluted (1)	$	2.69			$	3.08			(12.7	)	%

(1) Adjusted net income and Adjusted earnings per common share, diluted are non-GAAP measures. See "Non-GAAP Measures" and "Reconciliations of GAAP to Non-GAAP Financial Measures" below for reconciliations of non-GAAP financial measures to their most directly comparable GAAP financial measures.

	As of						Change
Balance Sheet ($ in millions)	August 2, 2025			August 3, 2024			%
Cash and cash equivalents	$	300.9		$	324.6		(7.3	)	%
Merchandise inventories, net(1)	$	1,587.6		$	1,366.6		16.2		%
Long-term debt, net	$	481.7		$	483.6		(0.4	)	%

(1) As of August 2, 2025 inventory per store was up 4.5% in units and 8.2% in dollars.

	Twenty-Six Weeks Ended						Change
Capital Allocation ($ in millions)	August 2, 2025			August 3, 2024			%
Share repurchases	$	99.9		$	222.3		(55.1	)	%
Dividends paid	$	17.4		$	16.1		8.1		%

Subsequent to the end of the second quarter, on August 28, 2025, Academy's Board of Directors declared a quarterly cash dividend of $0.13 per share of common stock. The dividend is payable on October 9, 2025, to stockholders of record as of the close of business on September 11, 2025.

New Store Openings

Academy opened three new stores during the second quarter, bringing its total to 306 locations across 21 states. The Company plans to open a total of 20 to 25 stores in fiscal 2025.

Academy Store Footprint Update

Time Frame	Total stores open at beginning of the period	Number of stores opened during the period	Number of stores closed during the period	Total stores open at end of period
FY 2024	282	16	—	298
1st Quarter 2025	298	5	—	303
2nd Quarter 2025	303	3	—	306

Note: 21 new stores added LTM

Time Frame	Total gross square feet open at beginning of the period	Gross square feet for stores opened during the period	Gross square feet for stores closed during the period	Total gross square feet at the end of the period
FY 2024	19,679	925	—	20,604
1st Quarter 2025	20,604	275	—	20,879
2nd Quarter 2025	20,879	191	—	21,070

Note: Figures in thousands

Tariff Mitigation Actions

The Company believes that it has mostly offset the impact of the current incremental tariffs on its business for fiscal 2025.  The Company deployed multiple tactics, including:

• Partnering with factories and vendors to absorb a portion of the incremental expense
• Working with overseas partners to shift country of origin where it made sense
• Adjusting unit buys where needed
• Pulling in additional inventory from brands that had available goods in domestic warehouses
• Utilizing our pricing optimization tool to create strategies to drive higher Average Unit Retails (AUR's)

The Company believes these actions should mitigate the impact of the tariffs throughout the remainder of this year while still being able to serve customers by delivering a strong value proposition. In the event of additional tariffs, the Company will continue to develop strategies to offset any impacts utilizing the tactics described above.

2025 Outlook

"Sales for the second quarter continued to improve, and we saw meaningful acceleration in our strategic initiatives. In addition, we believe we now have additional visibility into tariff impacts and are well positioned to mitigate them," said Carl Ford, Chief Financial Officer. "Based on the results from the first half of the year and the expectations for the remainder of fiscal 2025, we are narrowing the low end of our sales guidance from -4.0% to -3.0%. The updated sales guidance range is -3.0% to positive 1.0%. We expect the tax rate for the year to be 23.5%."

Academy is revising its previous guidance for fiscal 2025 as follows:

	Fiscal 2025 Guidance Q1 Update							Updated Fiscal 2025 Guidance
(in millions, except per share amounts)	Low end				High End			Low end				High end
Net sales	$	5,970			$	6,265		$	6,000			$	6,265
Comparable sales (1)		(4.0	)	%		1.0	%		(3.0	)	%		1.0	%
Gross margin rate		34.0		%		34.5	%		34.0		%		34.5	%
GAAP net income	$	350			$	410		$	360			$	410
Adjusted net income (2)	$	375			$	435		$	380			$	430
GAAP earnings per common share, diluted	$	5.10			$	5.90		$	5.30			$	6.00
Adjusted earnings per common share, diluted (2)	$	5.45			$	6.25		$	5.60			$	6.30
Diluted weighted average common shares		~69				~69			~68				~68
Capital Expenditures	$	180			$	220		$	180			$	220
Adjusted free cash flow (2), (3)	$	250			$	320		$	250			$	320

(1) We define comparable sales as the percentage of period-over-period net sales increase or decrease, in the aggregate, for stores open after thirteen full fiscal months, as well as for all eCommerce sales.

(2) Adjusted net income, adjusted earnings per common share (EPS), diluted, and adjusted free cash flow are non-GAAP measures. See "Non-GAAP Measures" and "Reconciliations of GAAP to Non-GAAP Financial Measures" below for reconciliations of non-GAAP financial measures to their most directly comparable GAAP financial measures.

(3) We have not reconciled guidance for adjusted free cash flow to the most comparable GAAP measure because it is not possible to do so without unreasonable efforts given the uncertainty and potential variability of reconciling items, which are dependent on future events often outside of management's control and could be significant; therefore, we are unable to provide an estimate of the most closely comparable GAAP measure at this time.

Conference Call Info

Academy will host a conference call today at 10:00 a.m. Eastern Time to discuss its financial results and related matters. The call will be webcast at investors.academy.com. The following information is provided for those who would like to participate in the conference call:

U.S. callers		1-877-407-3982
International callers		1-201-493-6780
Passcode		13755467

A replay of the conference call will be available for approximately 30 days on the Company's website.

About Academy Sports + Outdoors

Academy is a leading full-line sporting goods and outdoor recreation retailer in the United States. Originally founded in 1938 as a family business in Texas, Academy has grown to more than 300 stores across 21 states and counting. Academy's mission is to provide "Fun for All" and Academy fulfills this mission with a localized merchandising strategy and value proposition that strongly connects with a broad range of consumers. Academy's product assortment focuses on key categories of outdoor, apparel, sports & recreation and footwear through both leading national brands and a portfolio of private label brands. For more information, visit www.academy.com.

Non-GAAP Measures

Adjusted EBITDA, Adjusted EBIT, Adjusted Net Income, Adjusted Earnings per Common Share, and Adjusted Free Cash Flow have been presented in this press release as supplemental measures of financial performance that are not required by, or presented in accordance with, generally accepted accounting principles ("GAAP"). The Company believes that the presentation of these non-GAAP measures is useful to investors as they provide additional information on comparisons between periods by excluding certain items that affect overall comparability. The Company uses these non-GAAP financial measures for business planning purposes, to consider underlying trends of its business, and in measuring its performance relative to others in the market, and believes presenting these measures also provides information to investors and others for understanding and evaluating trends in the Company's operating results or measuring performance in the same manner as the Company's management. Non-GAAP financial measures should be considered in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP. The calculation of these non-GAAP financial measures may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures. For additional information on these non-GAAP financial measures, please see our Annual Report for the fiscal year ended February 1, 2025 (the "Annual Report"), filed on March 20, 2025 and our Quarterly Report for the thirteen weeks ended August 2, 2025 to be filed on September 2, 2025 ("the Quarterly Report"), which may be updated from time to time in our periodic filings with the Securities and Exchange Commission (the "SEC"), which are accessible on the SEC's website at www.sec.gov.

See "Reconciliations of GAAP to Non-GAAP Financial Measures" below for reconciliations of non-GAAP financial measures presented in this press release to their most directly comparable GAAP financial measures.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on Academy's current expectations and are not guarantees of future performance. Forward-looking statements may incorporate words such as "believe," "expect," "anticipate," "forward," "ahead," "opportunities," "plans," "priorities," "goals," "future," "short/long term," "will," "should," or the negative version of these words or other comparable words. The forward-looking statements in this press release include, among other things, statements regarding the Company's fiscal 2025 outlook under the caption "2025 Outlook", the Company's plans and expectations regarding tariff-mitigation actions, the Company's strategic plans and financial objectives, including the implementation of such plans, the growth of the Company's business and operations, including the opening of new stores and the expansion into new markets, as well as their performance, the Company's payment of dividends, including the timing and amount thereof, share repurchases by the Company, and the Company's expectations regarding its future performance and financial condition and the Company's plans to reduce direct import cost exposure to China. These forward-looking statements are subject to various risks, uncertainties, assumptions, or changes in circumstances that are all difficult to predict or quantify. Actual results may differ materially from these expectations due to changes in global, regional, or local economic, business, competitive, market, regulatory, environmental, and other factors that could affect overall consumer spending or our industry, including the possible effects of ongoing macroeconomic challenges, inflation and higher interest rates, trade policy changes or additional tariffs or changes in tariffs, geopolitical tensions, or changes to the financial health of our customers, many of which are beyond Academy's control. These and other important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in Academy's filings with the SEC, including the Annual Report and the Quarterly Report, under the caption "Risk Factors," as may be updated from time to time in our periodic filings with the SEC. Any forward-looking statement in this press release speaks only as of the date of this release. Academy undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.

Investor Contact		Media Contact
Dan Aldridge		Meredith Klein
VP, Investor Relations		VP, Communications
832-739-4102		346-823-6615
[email protected]		[email protected]

ACADEMY SPORTS AND OUTDOORS, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Amounts in thousands, except per share data)
	Thirteen Weeks Ended
	August 2, 2025				Percentage of Sales (1)			August 3, 2024				Percentage of Sales (1)
Net sales	$	1,599,838			100.0	%		$	1,548,980			100.0	%
Cost of goods sold		1,023,105			64.0	%			990,255			63.9	%
Gross margin		576,733			36.0	%			558,725			36.1	%
Selling, general and administrative expenses		404,352			25.3	%			368,639			23.8	%
Operating income		172,381			10.8	%			190,086			12.3	%
Interest expense, net		9,028			0.6	%			9,071			0.6	%
Other income, net		1,480			0.1	%			5,531			0.4	%
Income before income taxes		164,833			10.3	%			186,546			12.0	%
Income tax expense		39,399			2.5	%			43,958			2.8	%
Net income	$	125,434			7.8	%		$	142,588			9.2	%
Earnings Per Common Share:
Basic	$	1.89						$	1.99
Diluted	$	1.85						$	1.95
Weighted Average Common Shares Outstanding:
Basic		66,539							71,829
Diluted		67,689							73,289

⁽¹⁾ Column may not add due to rounding

ACADEMY SPORTS AND OUTDOORS, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Amounts in thousands, except per share data)
	Twenty-Six Weeks Ended
	August 2, 2025				Percentage of Sales (1)			August 3, 2024				Percentage of Sales (1)
Net sales	$	2,951,247			100.0	%		$	2,913,200			100.0	%
Cost of goods sold		1,915,645			64.9	%			1,898,681			65.2	%
Gross margin		1,035,602			35.1	%			1,014,519			34.8	%
Selling, general and administrative expenses		793,956			26.9	%			722,050			24.8	%
Operating income		241,646			8.2	%			292,469			10.0	%
Interest expense, net		18,072			0.6	%			18,557			0.6	%
Write off of deferred loan costs		—			—	%			449			0.0	%
Other income, net		4,287			0.1	%			10,735			0.4	%
Income before income taxes		227,861			7.7	%			284,198			9.8	%
Income tax expense		56,343			1.9	%			65,145			2.2	%
Net income	$	171,518			5.8	%		$	219,053			7.5	%
Earnings Per Common Share:
Basic	$	2.57						$	3.00
Diluted	$	2.52						$	2.93
Weighted Average Common Shares Outstanding:
Basic		66,831							72,911
Diluted		68,043							74,651

⁽¹⁾ Column may not add due to rounding

ACADEMY SPORTS AND OUTDOORS, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) (Amounts in thousands, except per share data)
		August 2, 2025				February 1, 2025				August 3, 2024
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	300,860			$	288,929			$	324,568
Accounts receivable - less allowance for doubtful accounts of $1,874, $2,752 and $2,080, respectively			19,181				16,759				12,812
Merchandise inventories, net			1,587,624				1,308,840				1,366,616
Prepaid expenses and other current assets			78,257				95,621				108,392
Total current assets			1,985,922				1,710,149				1,812,388
PROPERTY AND EQUIPMENT, NET			584,045				525,136				470,752
RIGHT-OF-USE ASSETS			1,206,207				1,173,075				1,103,242
TRADE NAME			579,330				579,007				578,550
GOODWILL			861,920				861,920				861,920
OTHER NONCURRENT ASSETS			58,559				51,676				47,506
Total assets		$	5,275,983			$	4,900,963			$	4,874,358
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable		$	803,309			$	612,424			$	704,578
Accrued expenses and other current liabilities			266,021				230,323				259,069
Current lease liabilities			139,678				115,134				124,628
Current maturities of long-term debt			3,000				3,000				3,000
Total current liabilities			1,212,008				960,881				1,091,275
LONG-TERM DEBT, NET			481,738				482,679				483,617
LONG-TERM LEASE LIABILITIES			1,217,217				1,185,741				1,083,390
DEFERRED TAX LIABILITIES, NET			270,502				256,815				252,919
OTHER LONG-TERM LIABILITIES			19,368				10,812				10,763
Total liabilities			3,200,833				2,896,928				2,921,964
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock, $0.01 par value, authorized 50,000,000 shares; none issued and outstanding			—				—				—
Common stock, $0.01 par value, authorized 300,000,000 shares; 66,625,266, 68,332,961, and 70,915,916 issued and outstanding as of August 2, 2025, February 1, 2025, and August 3, 2024, respectively.			666				683				709
Additional paid-in capital			255,517				247,094				244,584
Retained earnings			1,818,967				1,756,258				1,707,101
Stockholders' equity			2,075,150				2,004,035				1,952,394
Total liabilities and stockholders' equity		$	5,275,983			$	4,900,963			$	4,874,358

ACADEMY SPORTS AND OUTDOORS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Amounts in thousands)
	Twenty-Six Weeks Ended
	August 2, 2025				August 3, 2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	171,518			$	219,053
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		61,171				57,771
Non-cash lease expense		22,487				7,271
Equity compensation		15,144				14,093
Amortization of deferred loan and other costs		1,292				1,279
Deferred income taxes		13,686				(1,876	)
Write off of deferred loan costs		—				449
Changes in assets and liabilities:
Accounts receivable, net		(2,421	)			6,559
Merchandise inventories, net		(278,784	)			(172,457	)
Prepaid expenses and other current assets		15,311				(24,943	)
Other noncurrent assets		(7,617	)			(7,462	)
Accounts payable		178,381				153,613
Accrued expenses and other current liabilities		29,395				19,073
Income taxes payable		7,526				19,801
Other long-term liabilities		8,958				(1,201	)
Net cash provided by operating activities		236,047				291,023
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		(107,576	)			(73,425	)
Purchases of intangible assets		(323	)			(314	)
Net cash used in investing activities		(107,899	)			(73,739	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Revolving Credit Facilities		—				3,900
Repayment of Revolving Credit Facilities		—				(3,900	)
Repayment of Term Loan		(1,500	)			(1,500	)
Debt issuance fees		—				(5,690	)
Proceeds from exercise of stock options		2,646				3,575
Proceeds from issuance of common stock under employee stock purchase program		2,781				2,819
Taxes paid related to net share settlement of equity awards		(3,748	)			(3,412	)
Repurchase of common stock for retirement		(99,031	)			(220,325	)
Dividends paid		(17,365	)			(16,103	)
Net cash used in financing activities		(116,217	)			(240,636	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		11,931				(23,352	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		288,929				347,920
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	300,860			$	324,568
ACADEMY SPORTS AND OUTDOORS, INC. RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited)

Adjusted EBITDA and Adjusted EBIT

We define "Adjusted EBITDA" as net income (loss) before interest expense, net, income tax expense and depreciation, amortization, and impairment, and other adjustments included in the table below. We define "Adjusted EBIT" as Adjusted EBITDA less depreciation and amortization. We describe these adjustments reconciling net income (loss) to Adjusted EBITDA and Adjusted EBIT in the following table (amounts in thousands).

	Thirteen Weeks Ended								Twenty-Six Weeks Ended
	August 2, 2025				August 3, 2024				August 2, 2025				August 3, 2024
Net income	$	125,434			$	142,588			$	171,518			$	219,053
Interest expense, net		9,028				9,071				18,072				18,557
Income tax expense		39,399				43,958				56,343				65,145
Depreciation and amortization		31,021				28,918				61,171				57,771
Equity compensation (a)		7,602				7,955				15,144				14,093
Write off of deferred loan costs		—				—				—				449
Adjusted EBITDA	$	212,484			$	232,490			$	322,248			$	375,068
Less:  Depreciation and amortization		(31,021	)			(28,918	)			(61,171	)			(57,771	)
Adjusted EBIT	$	181,463			$	203,572			$	261,077			$	317,297
(a) Represents non-cash charges related to equity-based compensation, which vary from period to period depending on certain factors such as timing and valuation of awards, achievement of performance targets and equity award forfeitures.

Adjusted Net Income and Adjusted Earnings Per Common Share

We define "Adjusted Net Income" as net income (loss) plus other adjustments included in the table below, less the tax effect of these adjustments. We define "Adjusted Earnings per Common Share, Basic" as Adjusted Net Income divided by the basic weighted average common shares outstanding during the period and "Adjusted Earnings per Common Share, Diluted" as Adjusted Net Income divided by the diluted weighted average common shares outstanding during the period. We describe these adjustments reconciling net income (loss) to Adjusted Net Income, and Adjusted Earnings Per Common Share in the following table (amounts in thousands, except per share data): 

	Thirteen Weeks Ended								Twenty-Six Weeks Ended
	August 2, 2025				August 3, 2024				August 2, 2025				August 3, 2024
Net income	$	125,434			$	142,588			$	171,518			$	219,053
Equity compensation (a)		7,602				7,955				15,144				14,093
Write off of deferred loan costs		—				—				—				449
Tax effects of these adjustments (b)		(1,717	)			(1,901	)			(3,745	)			(3,333	)
Adjusted Net Income	$	131,319			$	148,642			$	182,917			$	230,262
Earnings per common share:
Basic	$	1.89			$	1.99			$	2.57			$	3.00
Diluted	$	1.85			$	1.95			$	2.52			$	2.93
Adjusted earnings per common share:
Basic	$	1.97			$	2.07			$	2.74			$	3.16
Diluted	$	1.94			$	2.03			$	2.69			$	3.08
Weighted average common shares outstanding:
Basic		66,539				71,829				66,831				72,911
Diluted		67,689				73,289				68,043				74,651
(a) Represents non-cash charges related to equity-based compensation, which vary from period to period depending on certain factors such as timing and valuation of awards, achievement of performance targets and equity award forfeitures.
(b) For the thirteen and twenty-six weeks ended August 2, 2025 and August 3, 2024, this represents the estimated tax effect (by using the projected full year tax rates for the respective years) of the total adjustments made to arrive at Adjusted Net Income.

Adjusted Net Income and Adjusted Earnings Per Common Share, Diluted, Guidance Reconciliation (amounts in millions, except per share data)

		Low Range*				High Range*
		Fiscal Year Ending January 31, 2026				Fiscal Year Ending January 31, 2026
Net Income		$	360.0			$	410.0
Equity compensation (a)		$	20.0			$	20.0
Adjusted Net Income		$	380.0			$	430.0
Earnings Per Common Share, Diluted		$	5.30			$	6.00
Equity compensation  (a)		$	0.30			$	0.30
Adjusted Earnings Per Common Share, Diluted		$	5.60			$	6.30
*	Amounts presented have been rounded.
(a)	Adjustments include non-cash charges related to equity-based compensation (as defined above), which may vary from period to period.

Adjusted Free Cash Flow

We define "Adjusted Free Cash Flow" as net cash provided by (used in) operating activities less net cash used in investing activities. We describe these adjustments reconciling net cash provided by operating activities to adjusted free cash flow in the following table (amounts in thousands):

	Thirteen Weeks Ended								Twenty-Six Weeks Ended
	August 2, 2025				August 3, 2024				August 2, 2025				August 3, 2024
Net cash provided by operating activities	$	78,575			$	91,346			$	236,047			$	291,023
Net cash used in investing activities		(56,911	)			(41,384	)			(107,899	)			(73,739	)
Adjusted Free Cash Flow	$	21,664			$	49,962			$	128,148			$	217,284