Academy Sports & Outdoors (ASO) J.P. Morgan Retail Round Up Forum 2026 summary

Strategic growth initiatives

• Three-pronged growth strategy: new store expansion, dot-com business growth, and increasing existing store productivity, with refined targets and tactics based on customer insights.

• Plan to open 125 new stores over five years, with 40% in legacy markets, 40% in existing markets, and 20% in new markets, shifting focus to outer suburbs and satellite markets.

• Dot-com business targeted to reach 15% penetration, requiring 70% growth over five years, leveraging assortment expansion, loyalty, and AI tools.

• Integrated loyalty program with three tiers, including a co-branded MasterCard, aims to drive both in-store and online sales.

• Pathway to grow sales from $6.1B to $8B in five years, with new stores, dot-com, and legacy business each contributing significant volume.

Financial outlook and margin expansion

• Targeting 5% compound annual sales growth and high single-digit EPS growth, with EBIT margin expansion from 9% to 10% over five years.

• Margin improvement driven by sales leverage, supply chain efficiencies, retail media network launch, and increased private brand penetration.

• Private brands expected to grow from 22% to 25% of sales, with soft goods gaining parity with hard goods for margin uplift.

• Cash flow to be split between growth investments and shareholder returns via dividends and share repurchases.

Customer and market dynamics

• Customer base is diversifying, with growth in higher-income households offsetting declines in lower-income segments.

• Initiatives to attract female and family shoppers include new brands and expanded private label offerings.

• Market share gains confirmed by external data in key categories, with strategies tailored by category and geography.

• Transaction growth expected from youth sports, fitness, outdoor, and Westernwear categories, supported by loyalty and e-commerce initiatives.