Academy Sports and Outdoors Inc
NASDAQ:ASO
Academy Sports and Outdoors Inc
Academy Sports and Outdoors Inc. began its journey as a humble tire shop in San Antonio, Texas, in 1938. Over the decades, it evolved into an expansive retail empire, offering a vast array of sporting goods and outdoor equipment. Today, the company operates more than 250 stores across the United States, becoming a go-to destination for customers seeking everything from camping gear to athletic apparel. Academy's core mission centers on providing high-quality products at competitive prices, catering to the needs of athletes, outdoor enthusiasts, and families alike. With a strategy focused on broadening product assortment, enhancing customer experiences both in-store and online, and expanding its footprint, Academy has solidified its position in the sporting goods retail market.
The company's business model is built around a combination of direct-to-consumer sales through its extensive network of brick-and-mortar stores and its growing e-commerce platform. Academy generates revenue by offering a diverse mix of private label products and well-known national brands, thereby capturing value across different price points. By maintaining efficient supply chain operations and prudent inventory management, Academy can offer competitive pricing while supporting a high turnover rate for its products. Its ongoing digital transformation and focus on customer-centric strategies aim to integrate seamlessly with in-store experiences, ensuring that Academy remains a formidable player in the dynamic and competitively charged retail landscape.
Academy Sports and Outdoors Inc. began its journey as a humble tire shop in San Antonio, Texas, in 1938. Over the decades, it evolved into an expansive retail empire, offering a vast array of sporting goods and outdoor equipment. Today, the company operates more than 250 stores across the United States, becoming a go-to destination for customers seeking everything from camping gear to athletic apparel. Academy's core mission centers on providing high-quality products at competitive prices, catering to the needs of athletes, outdoor enthusiasts, and families alike. With a strategy focused on broadening product assortment, enhancing customer experiences both in-store and online, and expanding its footprint, Academy has solidified its position in the sporting goods retail market.
The company's business model is built around a combination of direct-to-consumer sales through its extensive network of brick-and-mortar stores and its growing e-commerce platform. Academy generates revenue by offering a diverse mix of private label products and well-known national brands, thereby capturing value across different price points. By maintaining efficient supply chain operations and prudent inventory management, Academy can offer competitive pricing while supporting a high turnover rate for its products. Its ongoing digital transformation and focus on customer-centric strategies aim to integrate seamlessly with in-store experiences, ensuring that Academy remains a formidable player in the dynamic and competitively charged retail landscape.
Sales Growth: Net sales rose 3% to $1.4 billion, but comparable sales declined 0.9%, mainly due to softness in ammunition sales.
Margin Expansion: Gross margin improved to 35.7%, up 170 basis points, driven by higher average unit retail prices and better inventory management.
Omnichannel Strength: E-commerce sales jumped 22% and now make up over 10% of total sales, outpacing internal expectations.
Income Cohort Shift: Customers earning over $100,000 now represent 40% of sales, with high single-digit traffic growth among this group.
Store Growth: Opened 11 new stores in Q3; plans for 20-25 new stores in 2026, focusing mainly on existing and legacy markets.
Guidance Update: Narrowed 2025 comp sales guidance to -2% to flat (from -3% to +1%), and raised the low end of gross margin guidance.
Brand Partnerships: Nike and Jordan brands grew high single digits, contributing meaningfully to sales and drawing higher-income customers.
Promo Environment: Black Friday promotions were consistent with last year, but more customers are taking advantage of deals.
