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 declined 5.1% for the year and 3% in Q4, but showed sequential improvement.

• 16 new stores opened in FY 2024, expanding to 21 states, with plans for 20–25 new stores in 2025 and a focus on omnichannel and e-commerce growth.

• Strategic initiatives included private brands growing to 23% of sales, My Academy Rewards loyalty program surpassing 11 million members, and major brand launches such as Jordan and Converse.

• Management changes included a new CEO and CFO in 2023, and the company is positioned for sustainable growth with a resilient profit model and strong balance sheet.

• The company exceeded midpoint guidance for Q4 net sales and adjusted EPS despite a compressed holiday calendar and constrained consumer spending.

Financial highlights

• FY 2024 net income was $418.4M, down 19.4% year-over-year; adjusted net income was $439.5M; Q4 net income was $133.6M.

• FY 2024 adjusted EPS was $6.02; Q4 adjusted EPS was $1.96; diluted GAAP EPS for FY 2024 was $5.73.

• FY 2024 gross margin was 33.9%; Q4 gross margin was 32.2%, down 110 basis points year-over-year due to higher freight and distribution costs.

• FY 2024 adjusted free cash flow was $342M; Q4 inventory was $1.3B, up 9.6% year-over-year.

• FY 2024 operating cash flow was $528.1M; cash and equivalents at year-end were $288.9M.

Outlook and guidance

• FY 2025 net sales guidance is $6.09B–$6.3B, with comparable sales expected between -2% and +1%.

• FY 2025 adjusted EPS guidance is $5.75–$6.20; GAAP net income forecasted at $375M–$410M.

• Gross margin rate projected at 34.0%–34.5%, with supply chain recapture and higher softlines penetration.

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

• Q1 expected to be the most challenging, with improvements anticipated from Q2 onward as new stores and brand launches drive growth.