Academy Sports & Outdoors Reports 3% Net Sales Increase to $1.38 Billion in Q3

Academy Sports & Outdoors, Inc. reported its financial results for the third quarter and year-to-date periods ending November 1, 2025, revealing a net sales increase of 3.0% to $1.38 billion compared to $1.34 billion in the same period last year. For the first nine months of the fiscal year, net sales rose by 1.8% to $4.33 billion, up from $4.26 billion. The company's gross margin improved to 35.7% of net sales, a 170 basis point increase from the previous year, driven by favorable merchandise margins and reduced freight costs. Net income for the quarter was $71.6 million, an 8.8% increase from $65.8 million in the prior year, while year-to-date net income decreased to $243.1 million from $284.8 million.

The company opened 11 new stores during the third quarter, contributing to a total of 24 new stores opened since the end of the previous fiscal year. This expansion has been part of a broader strategy to enhance market presence, with a total of 317 stores now operating across 21 states. E-commerce sales also saw significant growth, representing 10.4% of merchandise sales in the third quarter, up from 8.8% in the prior year, with a 22.2% increase in e-commerce net sales.

Academy Sports & Outdoors reported a notable increase in selling, general, and administrative expenses, which rose by 7.6% to $393 million for the quarter, primarily due to strategic investments in new stores and technology. The company’s operating income for the quarter was $100.4 million, reflecting a 9.7% increase from the previous year. However, year-to-date operating income decreased to $342 million from $384 million, attributed to higher expenses associated with the expansion and operational investments.

The company’s balance sheet as of November 1, 2025, showed total assets of $5.41 billion, up from $5.09 billion a year earlier, with cash and cash equivalents slightly increasing to $289.5 million. Total liabilities also rose to $3.27 billion, primarily due to increased accounts payable and accrued expenses. The company has maintained a strong liquidity position, with significant borrowing capacity under its asset-based revolving credit facility.

Looking ahead, Academy Sports & Outdoors anticipates continued growth driven by its expansion strategy and enhanced e-commerce capabilities. The company plans to invest between $180 million and $210 million in capital expenditures for the fiscal year, focusing on new store openings and technology improvements. Despite facing challenges such as inflation and changing consumer preferences, management remains optimistic about the company's ability to adapt and grow in the competitive sporting goods market.