Academy Sports & Outdoors (ASO) Q2 2025 earnings summary

Executive summary

• Q2 2024 net sales declined 2.2% year-over-year to $1.55 billion, with comparable sales down 6.9% due to lower transactions and operational disruptions, partially offset by new store openings and a slight increase in average ticket.

• Gross margin improved by 50 basis points to 36.1%, driven by inventory cost management and lower freight expense, despite increased promotional activity.

• Net income for Q2 2024 was $142.6 million, down 9.2% year-over-year; diluted EPS was $1.95, with adjusted EPS at $2.03.

• New store growth, omni-channel expansion, and the launch of a new loyalty program are central to long-term strategy, with nine new stores set to open in the upcoming quarter.

• E-commerce sales grew for the third consecutive quarter, now 9.7% of total sales.

Financial highlights

• Year-to-date net sales decreased 1.8% to $2.91 billion, with comparable sales down 6.4%.

• Year-to-date net income was $219.1 million, a 12.7% decrease from the prior year.

• Adjusted EBITDA for Q2 2024 was $232.5 million; adjusted diluted EPS was $2.03.

• Operating cash flow for the first half of 2024 increased to $291.0 million from $243.6 million last year.

• Inventory balance was $1.37 billion, up 4.4% year-over-year, with units per store down 5%.

Outlook and guidance

• Full-year sales forecast revised to $5.90–$6.08 billion, a 4.3% to 1.4% decline versus last year; comparable sales expected to be -6% to -3%.

• Gross margin rate guidance held at 34.3%–34.7%.

• Adjusted net income forecasted at $420–$480 million; adjusted EPS at $5.75–$6.50.

• Capital expenditures projected at $175–$225 million; adjusted free cash flow at $290–$340 million.

• CapEx guidance reduced, with 55% allocated to new stores.