Academy Sports and Outdoors Reports 39.7% Decline in Net Income for Thirteen Weeks Ended May 3, 2025

Academy Sports and Outdoors, Inc. reported a net income of $46.1 million for the thirteen weeks ended May 3, 2025, a decline of 39.7% compared to $76.5 million in the same period last year. The company's net sales decreased by 0.9% to $1.35 billion from $1.36 billion, primarily due to a 3.7% drop in comparable sales. The decrease in sales was attributed to a 5.2% decline in customer transactions, although this was partially offset by a 1.5% increase in the average transaction value. The gross margin improved slightly to 34.0%, up from 33.4% in the prior year, driven by better merchandise margin management and reduced inventory shrinkage.

In terms of operational changes, Academy opened five new stores during the quarter, bringing the total to 303 locations across 21 states. The company has opened 44 new stores since relaunching its store program in 2022, with the new stores generating approximately $45.3 million in net sales during the quarter. The company continues to focus on enhancing its omnichannel capabilities, which include improvements to its e-commerce platform and mobile app, contributing to a 10% share of total merchandise sales from online channels.

Academy’s selling, general, and administrative expenses rose by 10.2% to $389.6 million, largely due to strategic investments in new stores and technology, including the launch of the Jordan Brand. The increase in expenses outpaced revenue growth, leading to a significant decline in operating income, which fell to $69.3 million from $102.4 million in the previous year. The company’s interest expense decreased slightly, reflecting lower interest rates and a reduced outstanding balance on its term loan.

Looking ahead, Academy Sports and Outdoors plans to continue its expansion strategy, with capital expenditures projected between $180 million and $220 million for the fiscal year. The company aims to deepen its presence in existing markets while entering new ones, leveraging its brand awareness and operational efficiencies. Despite the challenges posed by macroeconomic conditions, including inflation and changing consumer spending patterns, Academy remains focused on optimizing its inventory management and enhancing customer engagement through its digital platforms. The company also declared a quarterly cash dividend of $0.13 per share, payable on July 17, 2025, to stockholders of record as of June 19, 2025.