Academy Sports & Outdoors (ASO) Q3 2025 earnings summary

Executive summary

• Q3 2024 net sales declined 3.9% year-over-year to $1.34 billion, with comparable sales down 4.9% due to lower transactions, partially offset by new store openings and higher average ticket size.

• Net income for Q3 2024 was $65.8 million, down 34.2% from Q3 2023, reflecting lower sales and higher SG&A expenses.

• Outdoor division sales grew 7% year-over-year in Q3, offsetting declines in other divisions.

• 16 new stores opened in 2024, bringing the total to 298, with plans for 20–25 new stores in 2025.

• A new $700 million share repurchase program was authorized, reflecting confidence in long-term growth.

Financial highlights

• Q3 net sales were $1.34 billion; GAAP net income was $65.8 million, with adjusted net income of $70.5 million.

• Gross margin for Q3 was 34.0%, down 50 basis points year-over-year, mainly due to supply chain and freight costs.

• Q3 operating income was $91.5 million (6.8% margin), down from $136.7 million (9.8%) year-over-year.

• Year-to-date adjusted free cash flow reached $252 million, up 67% from the prior year.

• E-commerce net sales represented 8.8% of merchandise sales in Q3 2024.

Outlook and guidance

• FY 2024 net sales expected between $5.89–$5.94 billion, with comparable sales of -6% to -5%.

• Adjusted EPS guidance for FY24 set at $5.80–$6.10; GAAP EPS guidance at $5.50–$5.80.

• Adjusted free cash flow expected between $310–$350 million, with $185–$210 million in capex.

• 20–25 new stores planned for 2025, with a moderated growth curve due to macroeconomic conditions.

• Management expects continued investment in omnichannel capabilities and new store growth as key drivers for future sales and margin expansion.