Academy Sports & Outdoors (ASO) Q3 2026 earnings summary

Executive summary

• Net sales for Q3 FY25 increased 3% year-over-year to $1.38 billion, with e-commerce sales up 22.2% and comparable sales down 0.9%.

• Growth was driven by new store openings, strong back-to-school and holiday assortments, and premium brand expansion, especially Jordan and Nike.

• High-income customers (>$100K) now represent 40% of sales, with traffic from this segment up high single digits.

• Eleven new stores opened in Q3, bringing the total to 317 across 21 states, with 24 new stores opened year-to-date.

• Strategic focus remains on omnichannel growth, new store expansion, and premium brand partnerships.

Financial highlights

• Q3 gross margin improved to 35.7%, up 170 basis points year-over-year, driven by higher merchandise margin and lower freight and shrink.

• Operating income for Q3 was ~$100 million (7.3% of sales), up from $91.5 million (6.8%), and net income was $71.6 million, up 8.8% year-over-year.

• Diluted EPS rose 14% to $1.05, with adjusted EPS at $1.14.

• E-commerce sales grew 22.2% year-over-year, now 10.4% of total sales.

• Ended quarter with $290 million in cash and no outstanding borrowings on the $1 billion revolver.

Outlook and guidance

• FY25 net sales guidance narrowed to $6.025–$6.2 billion, with comparable sales expected between -2% and flat.

• Gross margin guidance raised to 34.3%–34.5% for the year.

• Adjusted EPS guidance for FY25 is $5.65–$6.15.

• Capital expenditures projected at $180–$210 million, with 60% allocated to new stores.

• Plans to open 20–25 new stores in FY26, with 80% in legacy/existing markets.