Academy Sports & Outdoors (ASO) Q4 2025 earnings summary

Executive summary

• FY 2024 net sales were $5.93B, down 3.7% year-over-year, with Q4 net sales at $1.68B, down 6.6%; comp sales fell 5.1% for the year and 3% in Q4, but showed sequential improvement.

• 16 new stores opened in FY 2024, with plans for 20–25 new stores in 2025; omnichannel and e-commerce expansion highlighted as growth drivers.

• Strategic improvements since 2018 include gross margin gains, SG&A reduction, and enhanced e-commerce and technology investments.

• Management team changes included a new CEO and CFO in 2023.

• Major brand launches planned for 2025, including Jordan Brand and expanded Nike assortments, plus an 18% dividend increase.

Financial highlights

• FY 2024 gross margin was 33.9%; Q4 gross margin was 32.2%, down 110 bps year-over-year.

• FY 2024 adjusted net income was $439.5M; Q4 net income was $133.6M, with adjusted Q4 EPS of $1.96.

• Adjusted free cash flow for FY 2024 was $342M.

• FY 2024 GAAP EPS was $5.73; adjusted EPS was $6.02.

• Inventory at year-end was $1.31B, up 9.6% year-over-year.

Outlook and guidance

• FY25 net sales guidance is $6.09B–$6.3B, with comparable sales expected between -2% and +1%.

• Gross margin rate projected at 34.0%–34.5%; adjusted EPS guidance is $5.75–$6.20.

• Adjusted free cash flow expected at $290M–$320M; capital expenditures planned at $220M–$250M.

• Q1 expected to be the most challenging, with improvements anticipated from Q2 onward.

• Long-term goals include $10B+ net sales and 50%+ store base expansion.