Latest news with #SteveLawrence
Yahoo
17 hours ago
- Business
- Yahoo
How Academy Sports Is ‘Saving' Sales With New In-store Tech
Academy Sports + Outdoors has made notable tech investments that have enabled store associates to better help shoppers and drive sales at the same time. In Tuesday's conference call to Wall Street after posting first-quarter results, company CEO Steve Lawrence said, 'We, like most people in our business have been dealing with the fluid situation [regarding tariffs]. It's created a lot of complexity in how we forecast and manage our business on a day-to-day basis.' More from WWD Ja Morant's Swarovski-studded Nike Air Force 1s Are Expected to Be Released This Year L'Oréal and Nvidia Collaborate to Bring Next-gen AI to Beauty Shoe Palace Pays Tribute to California Firefighters With New Jordan Release, Campaign While there have been adjustments in sourcing and supply chain, such as moving the production of goods out of China and working with vendor partners on strategies, as well as a look at capital allocation, it's the company's technological investments that are improving the customer experience at both the store level and online. 'We would attribute the momentum we're starting to build in the business to the solid progress we're making against our long-term objectives and goals,' the CEO said, adding that one of those goals is the expansion of its store base. 'We've thoughtfully slowed the pace of signing deals for 2026 new stores. This will allow us to get a better handle on how the current tariff situation will impact construction costs moving forward,' he explained. 'At this point, we don't expect it to change the overall number of new stores, but it will shift the timing of openings that were originally targeted for Q1 into Q2 or Q3.' Lawrence said work in the first quarter was focused on streamlining and improving the internal search functionality of Academy's website. At the same time, it also has grown its aisle offering with an expanded assortment online that's being supported through drop-shipping. The big change has been the addition of handheld devices, which have kiosk functionality integrated into them. 'With this new capability, if a customer cannot buy something in a store and we own it somewhere in the chain, we can save the sale and get the customer what they need by shipping it to their home or to their closest store for both pickup, whichever is most convenient for them,' he said. 'As stores have started to use this new technology, we're seeing their save-to-sale revenue increased 900 percent on average per store.' Another technological enhancement that improves the shopping experience has been the rollout of RFID scanners to all stores. The project — including the addition of the handheld devices for store associates — began in the spring and was completed at the end of May. 'Simplistically, we're leveraging RFID chips already embedded in products with key brands such as Nike, Jordan and Adidas,' he said. Academy piloted the technology in 70 stores last year, finding that the use led to a 20 percent improvement in store level inventory accuracy. 'Rolling this technology to all stores will help improve our in-stocks, which ultimately will lead to increases in conversion. As we move through 2025, we expect to add more brands for regular RFID accounts, such as Levi's, Under Armour, Columbia, Brooks and Puma,' Lawrence said. 'Looking into next year, our goal is to embed RFID tags in most of our private label products, along with working with other national brand suppliers to follow suit where it makes sense.' He also said that when Academy launched the Jordan brand in 145 doors and online on April 23, the specialty chain for the first time cross-merchandised apparel, footwear and accessories together by gender into a 'branded shop concept.' So far, the initial reaction from customers has been strong and the brand is tracking ahead of initial sales plans. With the planned expansion of key items, such as cleats for football season and launching Jordan in all stores later this summer, 'We anticipate the Jordan brand will be a Top 20 brand for us by the end of the year,' Lawrence told analysts. Another plus for the retailer has been its new loyalty program, which the CEO said helps to drive value for the consumer. 'We're planning to add an additional 2 million customers to myAcademy Rewards in 2025, which should take us to over 13 million members by yearend. Growing our loyalty program membership will drive growth for us both now and in the long-term,' he said, noting that the more engaged customers tend to 'shop Academy two to three times more in a year than an average customer and spend four to five times more on an annual basis.' Academy has been working with suppliers on a case-by-case basis — its branded partners each have a different exposure to tariffs based off their unique supply chains — and believes it has mitigated the impact from tariffs. Lawrence did say that if reciprocal tariffs at the higher levels were to go back into place, such as the 145 percent for China, 'prices are going up virtually on everything.' And while the company's goal is to maintain its value positioning, he said a return to higher levels would likely result in some price increases to offset margin erosion. In a telephone interview, Matt McCabe, executive vice president and chief merchandising officer, said that customers have been 'very receptive' to the Jordan brand, which is 'exceeding our plan since the launch date, and we expect that to really take dividends as we head towards back-to-school.' He said it was too early to tell how much of the selling can be attributed to the growing traffic from the higher-income, trade-down customer. McCabe also said that what has been driving traffic over the past few quarters 'has been the upgrade to the retailer's assortment mix to include more better and best level product.' That includes the retailer selling brands such as Brooks, and the higher-end Nike footwear, as well as growing its presence in running, in both the sports and recreation options. And while retailers sometimes pull back on initiatives given the uncertainties in the retail landscape, McCabe said that's not the case with Academy. 'In terms of new initiatives to drive our business, we haven't pulled back on that at all,' he said, adding that in the case of the Jordan Brand, 'we are still full steam ahead.' McCabe said Academy has a 'really strong, softlines business, both in apparel and footwear. Footwear is actually the strongest.' He also said the expanded its Nike footprint on its sales floor by 20 percent, 'where we now have vignettes where you can shop things like running and training.' Best of WWD All the Retailers That Nike Left and Then Went Back Mikey Madison's Elegant Red Carpet Shoe Style [PHOTOS] Julia Fox's Sleekest and Boldest Shoe Looks Over the Years [Photos]
Yahoo
2 days ago
- Business
- Yahoo
Paramount layoffs, Academy Sports, J.M. Smucker: Trending Tickers
Paramount Global (PARA, PARAA) will be cutting 3.5% of its global workforce as part of its current cost-cutting strategy. This comes after Disney (DIS) announced it will be laying off hundreds of workers around the world. Academy Sports and Outdoor (ASO) is widening its full-year net sales forecast as it preps for a multitude of scenarios under President Trump's tariff policies. Snack brand J.M. Smucker Company's (SJM) full-year guidance for its fiscal 2026 fell short of Wall Street's expectations. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. Now time for some of today's trending tickers. We're watching Paramount Academy Sports and JM Smucker. Let's first stop check in on Paramount, cutting three and a half percent of its US workforce as part of its continued cost cutting. The layoffs come as Paramount seeks regulatory approval for its proposed merger with Skydance media. You're taking a look at shares. They are flat, moving just barely to the downside here. Uh, according to some of the reporting and a memo, uh, observed by and seen by CNBC, uh, they say that they recognize how difficult this is and are thankful for everyone's hard work and contributions, but the change is necessary to address the environment they're operating in and best position Paramount for success. That coming from the executives according to this memo. Um, also, they had a staff reduction of 15% back in August 2024. Yeah, I I was thinking it's it's not too significant in comparison. Obviously significant for the folks impacted. It's a little over 500 if you take a look at the percentage compared to the recent regulatory filing from December where the company said they had about 18,500 full-time and part-time employees. What's interesting too is that in a memo that's been reviewed by other news outlets, it looks like the company is signaling that this is just US-based for now. Though that could potentially, of course, go a little bit more global over time. And this is just one of the many things that the company is dealing with as they continue to pursue that merger with Skydance media that's been held up in a legal battle, uh, that has ensued, especially following the result of some coverage from CBS during the presidential elections. So of course, we'll continue to monitor those developments for you. Next up here, Academy Sports widening its full-year net sales forecast accounting for multiple tariff scenarios. Sporting goods retailer topping expectations for the first quarter, despite sales declining from a year prior. You can see those shares up over four and a half percent. Another beneficiary this earnings cycle of being able to come out and say, hey, actually, not only are we going to be okay in the face of tariffs, but we're going to do better than we had previously anticipated. Yeah, the company's saying that Air Jordan gave it some wings here in the statement here from the CEO, Steve Lawrence, um, the opening of five new stores, plus the biggest brand launch in the company's history with the addition of Jordan Brand or what kind of continue to add to the progress over their strategic initiatives they've mentioned here. They're taking a look at the year-to-date move here though, still a lot of ground to make up for Academy sports, and this has been an interesting sector within the retail space or segment within the retail space to track, uh, especially knowing the tie-up between Foot Locker and Dick's Sporting Goods. Uh, very competitive measure there, and we'll see how Academy sports also continues to make its own play very well known to consumers and to its partners in business here. Uh, they did say that they continue to see strong growth though in traffic from higher income consumers. That's noteworthy. They believe their focus on remaining the value player in their space though will allow them to continue to take market share moving throughout the rest of 2025 here. Finally, let's go where the Uncrustables go, JM Smucker, issuing a disappointing outlook for fiscal 2026. The packaged food company reporting mixed results for the fourth quarter with net sales declining 3% from a year earlier. You're taking a look at shares down by about six and a half percent. Uh, I sent a few questions into the company and their leadership. We've had Mark Smucker on quarter after quarter and have had the opportunity to even go out to Orville, Ohio and see exactly what this full operation is about. Uncrustables continues to put this team on its back here. Uh, continues to outperform and perform across consumer segments. Uh, they had mentioned in response to one of my questions to them, proud of the growth that they've demonstrated on that. Uh, also though, on the tariff side, they had to acknowledge there. They said they're monitoring and assessing changes to trade policy and tariffs and working with some of the industry associations and policymakers to achieve the best outcome for their consumers. And then just lastly here, they did acknowledge where they're looking across within the portfolio of sweet baked snacks. Um, and so narrowing some of their priorities around their new leadership and evaluating the product assortment there. It'll be interesting to see what decisions come as a result of that evaluation. Yeah, that reduced profitability in the sweet baked goods that you mentioned, Brad, a key sticking point in the analyst commentary here. Jeffrey's calling it out. We also had a note from TD Cowen saying that they provide the company provided a big blow to the bull case, surprising Wall Street with guidance coming in here, and that some of the tariff headwinds on coffee elasticity were also a potential surprise. Having said that, they also mentioned that this is a company that tends to guide more conservatively. So I think that's important for investors to monitor, and that TD Cowen describes this as a potential clearing event, uh, where you could see investors kind of fleeing the stock pricing in the impact of tariffs, and then potentially coming back in if you do start to see any retail trends leading to more strength for some of those individual sectors within the company. You can scan the QR code below to track the best and worst performing stocks with Yahoo Finance's trending tickers page.
IOL News
2 days ago
- IOL News
South Africa's prison population surges to 166,924 amid budget constraints
The total population of inmates increased to 166,924 as of December 31, 2024, throughout South Africa. Image: Steve Lawrence / Independent Newspapers Within three months, 6,571 more inmates occupied prisons throughout South Africa, bringing the total population of inmates to 166,924 as of December 31, 2024. The Department of Correctional Services (DCS) presented the 3rd Quarter Performance Report for the 2024/25 financial year to the Portfolio Committee on Correctional Services on Tuesday, noting that the prison population increased from 160,353 on 30 September 2024. In the DCS report, reference was made to the capital budget being underfunded by R222 million, constraining infrastructure upgrades and maintenance. The DCS stated that food costs have surged, driven not only by inflation and a growing inmate population, but also by the rising number of foreign nationals housed in correctional facilities, which are experiencing the highest concentration of this challenge. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Approximately 27% of offenders in Gauteng are foreign nationals. Polokwane and Thohoyandou in Limpopo, Barberton in Mpumalanga, and Klerksdorp, North West, correctional centres admitted more remand detainees, mostly foreign nationals, due to SAPS operations Vala Umgodi and Shanela, where they were charged for illegal mining and illegal immigration. The DCS stated that due to municipal tariffs for electricity, water, and sanitation escalating above the Consumer Price Index, it is creating further strain on the already stretched goods and services budget. The department stated that the branch budget is also severely constrained, hampering efforts to modernise digital infrastructure and cybersecurity. The DCS did not meet its target in Information Technology (IT) because of a number of sites where a mesh network and an integrated security system (ISS) are installed. The reason provided was attributed to a delay in the testing of the Audio Visual Remand (AVR) due to the unavailability of the confirmed court dates by the Department of Justice. The DCS also stated that funds allocated for the Local Area Network (LAN) infrastructure project were insufficient due to a budget shortfall for the Microsoft licenses. It highlighted that overcrowding in correctional facilities is in excess of approved bed space capacity. 'The admission of remand detainees and sentenced offenders exceeds the outflow of cases from the system,' the DCS stated. The unsentenced inmate population increased by 5,934, while the sentenced offender population increased by 637. With regard to overcrowding in Gauteng, the DCS stated that the Leeuwkop Medium B is unable to utilise four cells with a capacity of 160 because of two burnt cells and two that are adjacent to the burnt cells. At the same facility, the DCS cannot use the Delta units with a bed space of 340 due to a lack of resources; further details are not provided. The DCS was allocated a budget of R27.8 billion, with 60% going towards incarceration, amounting to R16.7bn.
Yahoo
2 days ago
- Business
- Yahoo
Academy Sports (NASDAQ:ASO) Reports Sales Below Analyst Estimates In Q1 Earnings
Sporting goods retailer Academy Sports & Outdoor (NASDAQ:ASO) fell short of the market's revenue expectations in Q1 CY2025, with sales flat year on year at $1.35 billion. On the other hand, the company's outlook for the full year was close to analysts' estimates with revenue guided to $6.12 billion at the midpoint. Its non-GAAP profit of $0.76 per share was 14.7% below analysts' consensus estimates. Is now the time to buy Academy Sports? Find out in our full research report. Revenue: $1.35 billion vs analyst estimates of $1.37 billion (flat year on year, 1.5% miss) Adjusted EPS: $0.76 vs analyst expectations of $0.89 (14.7% miss) Adjusted EBITDA: $109.8 million vs analyst estimates of $120.7 million (8.1% margin, 9.1% miss) The company dropped its revenue guidance for the full year to $6.12 billion at the midpoint from $6.18 billion, a 1% decrease Management lowered its full-year Adjusted EPS guidance to $5.85 at the midpoint, a 2.1% decrease Operating Margin: 5.1%, down from 7.5% in the same quarter last year Free Cash Flow Margin: 7.9%, down from 12.3% in the same quarter last year Locations: 303 at quarter end, up from 284 in the same quarter last year Same-Store Sales fell 3.7% year on year (-5.7% in the same quarter last year) Market Capitalization: $2.95 billion 'During the first quarter we saw continued progress across our strategic initiatives, including the opening of five new stores, and the biggest brand launch in the Company's history with the addition of the Jordan Brand,' said Steve Lawrence, Chief Executive Officer. Founded in 1938 as a tire shop before expanding into fishing equipment, Academy Sports & Outdoor (NASDAQ:ASO) sells a broad selection of sporting goods but is still known for its outdoor activity merchandise. A company's long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. With $5.92 billion in revenue over the past 12 months, Academy Sports is a mid-sized retailer, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale. As you can see below, Academy Sports's 3.8% annualized revenue growth over the last six years (we compare to 2019 to normalize for COVID-19 impacts) was sluggish. This quarter, Academy Sports missed Wall Street's estimates and reported a rather uninspiring 0.9% year-on-year revenue decline, generating $1.35 billion of revenue. Looking ahead, sell-side analysts expect revenue to grow 5.2% over the next 12 months, similar to its six-year rate. This projection is noteworthy and implies its newer products will catalyze better top-line performance. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Academy Sports operated 303 locations in the latest quarter. It has opened new stores at a rapid clip over the last two years, averaging 5.3% annual growth, much faster than the broader consumer retail sector. This gives it a chance to become a large, scaled business over time. When a retailer opens new stores, it usually means it's investing for growth because demand is greater than supply, especially in areas where consumers may not have a store within reasonable driving distance. The change in a company's store base only tells one side of the story. The other is the performance of its existing locations and e-commerce sales, which informs management teams whether they should expand or downsize their physical footprints. Same-store sales is an industry measure of whether revenue is growing at those existing stores and is driven by customer visits (often called traffic) and the average spending per customer (ticket). Academy Sports's demand has been shrinking over the last two years as its same-store sales have averaged 5.4% annual declines. This performance is concerning - it shows Academy Sports artificially boosts its revenue by building new stores. We'd like to see a company's same-store sales rise before it takes on the costly, capital-intensive endeavor of expanding its store base. In the latest quarter, Academy Sports's same-store sales fell by 3.7% year on year. This decrease represents a further deceleration from its historical levels. We hope the business can get back on track. It was encouraging to see Academy Sports beat analysts' gross margin expectations this quarter. On the other hand, its revenue, EPS, and EBITDA missed and it lowered its full-year guidance. Overall, this was a softer quarter. The stock remained flat at $44.50 immediately following the results. Is Academy Sports an attractive investment opportunity right now? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
3 days ago
- Business
- Yahoo
Academy Sports + Outdoors Reports First Quarter Fiscal 2025 Results
First Quarter Sales Decline (0.9)%; Comparable Sales Declined (3.7)% eCommerce Sales Increase 10.2%; New Stores Continue to Comp Positive Low Single Digits First Quarter Diluted GAAP EPS of $0.68; Returned $108M to Shareholders through Share Buy Backs and Dividends Opened Five New Stores in Pennsylvania, Maryland, Missouri and North Carolina Company Revises Guidance to Account For Multiple Tariff Scenarios While Maintaining High End KATY, Texas, June 10, 2025 (GLOBE NEWSWIRE) -- Academy Sports and Outdoors, Inc. (Nasdaq: ASO) ("Academy" or the "Company") today announced its financial results for the first quarter ended May 3, 2025. 'During the first quarter we saw continued progress across our strategic initiatives, including the opening of five new stores, and the biggest brand launch in the Company's history with the addition of the Jordan Brand,' said Steve Lawrence, Chief Executive Officer. 'We saw sequential improvement across each month of the quarter, despite a choppy macro-economic backdrop, which resulted in a positive comp in April. Moving forward we are balancing our optimism about our strategic initiatives against the uncertain environment that our customers will face in the back half of the year. As a result of this, we are widening our annual comp sales guidance range to -4% to +1% to account for a potential downside that may be created by inflationary pressures the remainder of the year. Our team has performed extensive work to mitigate tariff pressures at the current levels and we will remain nimble as the situation evolves. We continue to see strong growth in traffic from higher income consumers, and we believe our focus on remaining the value player in our space will allow us to continue to take market share as we move through the year." First Quarter Operating Results($ in millions, except per share data) Thirteen Weeks Ended Change May 3, 2025 May 4, 2024 % Net sales $ 1,351.4 $ 1,364.2 (0.9 ) % Comparable sales (3.7 ) % (5.7 ) % Income before income tax $ 63.0 $ 97.7 (35.5 ) % Net income $ 46.1 $ 76.5 (39.7 ) % Adjusted net income(1) $ 51.6 $ 81.6 (36.8 ) % Earnings per common share, diluted $ 0.68 $ 1.01 (32.7 ) % Adjusted earnings per common share, diluted(1) $ 0.76 $ 1.08 (29.6 ) % (1) Adjusted net income and adjusted earnings per common share (EPS), diluted are non-GAAP measures. See "Non-GAAP Measures" and "Reconciliations of GAAP to Non-GAAP Financial Measures" below for reconciliations of non-GAAP financial measures to their most directly comparable GAAP financial measures. Thirteen Weeks Ended Change Balance Sheet ($ in millions) May 3, 2025 May 4, 2024 % Cash and cash equivalents $ 285.1 $ 378.1 (24.6 ) % Merchandise inventories, net(1) $ 1,560.0 $ 1,356.8 15.0 % Long-term debt, net $ 482.2 $ 484.1 (0.4 ) % (1)As of May 3, 2025 inventory per store was up 6.5% in units and 7.8% in dollars. Thirteen Weeks Ended Change Capital Allocation ($ in millions) May 3, 2025 May 4, 2024 % Share repurchases $ 99.9 $ 123.5 (19.1 ) % Dividends paid $ 8.7 $ 8.2 6.1 %Subsequent to the end of the first quarter, on June 5, 2025, Academy announced its Board of Directors declared a quarterly cash dividend with respect to the quarter ended May 3, 2025, of $0.13 per share of common stock. The dividend is payable on July 17, 2025, to stockholders of record as of the close of business on June 19, 2025. New Store OpeningsAcademy opened five new stores, bringing its total to 303 locations, and expanded into two new states, Pennsylvania and Maryland, during the first quarter. The addition of these two new states takes the Company's footprint to 21 total states. The Company plans to open a total of 20 to 25 stores in fiscal 2025. Academy Store Footprint Update Time Frame Total stores open at beginning of the period Number of stores opened during the period Number of stores closed during the period Total stores open at end of period FY 2024 282 16 — 298 1st Quarter 2025 298 5 — 303Time Frame (in thousands) Total gross square feet open at beginning of the period Gross square feet for stores opened during the period Gross square feet for stores closed during the period Total gross square feet at the end of the period FY 2024 19,679 925 — 20,604 1st Quarter 2025 20,604 275 — 20,879Tariff Mitigation ActionsThe Company has worked diligently over the past several years to reduce exposure to China and to diversify its supply chain by entering into arrangements with trusted suppliers in other countries. The Company has reduced its cost exposure to approximately 9% of total cost of goods sold directly related to China for its private label business and plans to further reduce this cost exposure to around 6% by the end of fiscal 2025. The following actions have been taken to quickly limit exposure to all tariffs: Pulled forward domestic inventory receipts of evergreen product at pre-tariff prices Partnered with suppliers to decrease cost Reduced inventory receipts to maintain maximum flexibility to respond to evolving landscape Shifted product out of China to other countries Reduced fiscal 2025 projected capital expenditures Flexed expenses to better align with current composition of inventory With these actions, the Company believes it has effectively mitigated the cost of tariffs at current levels, while minimizing the impacts to customers. Moving forward, the team will remain nimble and make adjustments, if or when the situation changes. The Company also plans to leverage its private brand portfolio, which represents approximately 23% of merchandise sales, to offer differentiated, high-margin value options to the customer. As a value retailer, Academy's owned brands like BCG, Magellan Outdoors, R.O.W., and Freely help to deliver compelling value while protecting margin integrity. 2025 Outlook'We are updating our fiscal 2025 guidance range to account for a wider range of scenarios as we move forward in this uncertain demand environment. We remain confident in our strategic initiatives and their progress to date, which has allowed us to maintain the high end of our guidance as we drive toward positive comps," said Carl Ford, Executive Vice President and Chief Financial Officer. "Our strong free cash flow generation will allow us to continue to fund all of our growth initiatives, while returning the majority to investors through dividends and share repurchases." Academy is providing the following updated guidance for fiscal 2025 (i.e., year ending January 31, 2026), as compared to the original guidance given on March 20, 2025. This guidance takes into account various factors, both internal and external, such as the expected benefits of the Company's growth initiatives, current consumer demand, the competitive environment, as well as the potential impacts from inflation and other economic risks: High end: Reciprocal tariffs land at 10% for all other countries, including China Low end: China stays at 145%; original reciprocal tariffs announced on April 2, 2025 remain The earnings per share estimates do not include any potential future share repurchases and assume a tax rate of 22.0% to 23.0%. Original Fiscal 2025 Guidance Updated Fiscal 2025 Guidance change (at midpoint) (in millions, except per share amounts) Low end High end Low end High end 2024 Actuals vs. 2024 Net sales $6,090 $6,265 $5,970 $6,265 $5,933 3.1 % Comparable sales(1) (2.0 ) % 1.0 % (4.0 ) % 1.0 % (5.1 ) % +360 bps Gross margin rate 34.0 % 34.5 % 34.0 % 34.5 % 33.9 % +35 bps GAAP net income $375 $410 $350 $410 $418 (9.1 ) % Adjusted net income(2) $400 $435 $375 $435 $439 (7.7 ) % GAAP earnings per common share, diluted $5.40 $5.85 $5.10 $5.90 $5.73 (4.0 ) % Adjusted earnings per common share, diluted(2) $5.75 $6.20 $5.45 $6.25 $6.02 (2.8 ) % Diluted weighted average common shares ~70 ~70 ~69 ~69 73.0 (5.5 ) % Capital Expenditures $220 $250 $180 $220 $200 — % Adjusted free cash flow(2), (3) $290 $320 $250 $320 $342 (16.7 ) % (1) We define comparable sales as the percentage of period-over-period net sales increase or decrease, in the aggregate, for stores open after thirteen full fiscal months, as well as for all ecommerce sales. (2) Adjusted net income, adjusted earnings per common share (EPS), diluted, and adjusted free cash flow are non-GAAP measures. See "Non-GAAP Measures" and "Reconciliations of GAAP to Non-GAAP Financial Measures" below for reconciliations of non-GAAP financial measures to their most directly comparable GAAP financial measures. (3) We have not reconciled guidance for adjusted free cash flow to the most comparable GAAP measure because it is not possible to do so without unreasonable efforts given the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management's control and could be significant; therefore, we are unable to provide an estimate of the most closely comparable GAAP measure at this time. Conference Call InfoAcademy will host a conference call today at 10:00 a.m. Eastern Time to discuss its financial results and related matters. The call will be webcast at The following information is provided for those who would like to participate in the conference call: U.S. callers 1-877-407-3982 International callers 1-201-493-6780 Passcode 13753920 A replay of the conference call will be available for approximately 30 days on the Company's website. About Academy Sports + OutdoorsAcademy is a leading full-line sporting goods and outdoor recreation retailer in the United States. Originally founded in 1938 as a family business in Texas, Academy has grown to more than 300 stores across 21 states and counting. Academy's mission is to provide "Fun for All" and Academy fulfills this mission with a localized merchandising strategy and value proposition that strongly connects with a broad range of consumers. Academy's product assortment focuses on key categories of outdoor, apparel, sports & recreation and footwear through both leading national brands and a portfolio of private label brands. For more information, visit Non-GAAP Measures Adjusted EBITDA, Adjusted EBIT, Adjusted Net Income, Adjusted Earnings per Common Share, and Adjusted Free Cash Flow have been presented in this press release as supplemental measures of financial performance that are not required by, or presented in accordance with, generally accepted accounting principles ('GAAP'). The Company believes that the presentation of these non-GAAP measures is useful to investors as they provide additional information on comparisons between periods by excluding certain items that affect overall comparability. The Company uses these non-GAAP financial measures for business planning purposes, to consider underlying trends of its business, and in measuring its performance relative to others in the market, and believes presenting these measures also provides information to investors and others for understanding and evaluating trends in the Company's operating results or measuring performance in the same manner as the Company's management. Non-GAAP financial measures should be considered in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP. The calculation of these non-GAAP financial measures may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures. For additional information on these non-GAAP financial measures, please see our Annual Report for the fiscal year ended February 1, 2025 (the "Annual Report"), filed on March 20, 2025 and our Quarterly Report for the thirteen weeks ended May 3, 2025 to be filed on June 10, 2025 ("the Quarterly Report"), which may be updated from time to time in our periodic filings with the Securities and Exchange Commission (the "SEC"), which are accessible on the SEC's website at See 'Reconciliations of GAAP to Non-GAAP Financial Measures' below for reconciliations of non-GAAP financial measures presented in this press release to their most directly comparable GAAP financial measures. Forward Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on Academy's current expectations and are not guarantees of future performance. Forward-looking statements may incorporate words such as 'believe,' 'expect," "anticipate," 'forward,' 'ahead,' 'opportunities,' 'plans,' 'priorities,' 'goals,' 'future,' 'short/long term,' 'will,' 'should,' or the negative version of these words or other comparable words. The forward-looking statements in this press release include, among other things, statements regarding the Company's fiscal 2025 outlook under the caption "2025 Outlook," the Company's plans and expectations regarding tariff-mitigation actions, the Company's strategic plans and financial objectives, including the implementation of such plans, the growth of the Company's business and operations, including the opening of new stores and the expansion into new markets, as well as their performance, the Company's payment of dividends, including the timing and the amount thereof, share repurchases by the Company, and the Company's expectations regarding its future performance and financial condition and the Company's plans to reduce direct import cost exposure to China. These forward-looking statements are subject to various risks, uncertainties, assumptions, or changes in circumstances that are all difficult to predict or quantify. Actual results may differ materially from these expectations due to changes in global, regional, or local economic, business, competitive, market, regulatory, environmental, and other factors that could affect overall consumer spending or our industry, including the possible effects of ongoing macroeconomic challenges, inflation and higher interest rates, trade policy changes or additional tariffs or changes in tariffs, geopolitical tensions, or changes to the financial health of our customers, many of which are beyond Academy's control. These and other important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in Academy's filings with the SEC, including the Annual Report and the Quarterly Report, under the caption "Risk Factors," as may be updated from time to time in our periodic filings with the SEC. Any forward-looking statement in this press release speaks only as of the date of this release. Academy undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws. Investor Contact Media Contact Dan Aldridge Meredith Klein VP, Investor Relations VP, Communications 832-739-4102 346-823-6615 ACADEMY SPORTS AND OUTDOORS, STATEMENTS OF INCOME(Unaudited)(Amounts in thousands, except per share data) Thirteen Weeks Ended May 3, 2025 Percentage of Sales(1) May 4, 2024 Percentage of Sales(1) Net sales $ 1,351,409 100.0 % $ 1,364,220 100.0 % Cost of goods sold 892,540 66.0 % 908,427 66.6 % Gross margin 458,869 34.0 % 455,793 33.4 % Selling, general and administrative expenses 389,604 28.8 % 353,410 25.9 % Operating income 69,265 5.1 % 102,383 7.5 % Interest expense, net 9,044 0.7 % 9,486 0.7 % Write off of deferred loan costs — 0.0 % 449 — Other (income), net (2,807 ) (0.2 ) % (5,204 ) (0.4 ) % Income before income taxes 63,028 4.7 % 97,652 7.2 % Income tax expense 16,944 1.3 % 21,187 1.6 % Net income $ 46,084 3.4 % $ 76,465 5.6 % Earnings Per Common Share: Basic $ 0.69 $ 1.03 Diluted $ 0.68 $ 1.01 Weighted Average Common Shares Outstanding: Basic 67,122 73,993 Diluted 68,170 75,798 (1) Column may not add due to rounding ACADEMY SPORTS AND OUTDOORS, BALANCE SHEETS(Unaudited)(Amounts in thousands, except per share data) May 3, 2025 February 1, 2025 May 4, 2024 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 285,104 $ 288,929 $ 378,145 Accounts receivable - less allowance for doubtful accounts of $2,584, $2,752 and $1,817, respectively 16,869 16,759 13,700 Merchandise inventories, net 1,560,035 1,308,840 1,356,811 Prepaid expenses and other current assets 59,757 95,621 68,320 Total current assets 1,921,765 1,710,149 1,816,976 PROPERTY AND EQUIPMENT, NET 551,184 525,136 456,594 RIGHT-OF-USE ASSETS 1,210,516 1,173,075 1,116,222 TRADE NAME 579,165 579,007 578,364 GOODWILL 861,920 861,920 861,920 OTHER NONCURRENT ASSETS 55,873 51,676 43,803 Total assets $ 5,180,423 $ 4,900,963 $ 4,873,879 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 849,554 $ 612,424 $ 735,563 Accrued expenses and other current liabilities 272,362 230,323 262,048 Current lease liabilities 137,979 115,134 121,465 Current maturities of long-term debt 3,000 3,000 3,000 Total current liabilities 1,262,895 960,881 1,122,076 LONG-TERM DEBT, NET 482,209 482,679 484,084 LONG-TERM LEASE LIABILITIES 1,210,095 1,185,741 1,098,799 DEFERRED TAX LIABILITIES, NET 255,912 256,815 253,069 OTHER LONG-TERM LIABILITIES 22,080 10,812 10,330 Total liabilities 3,233,191 2,896,928 2,968,358 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY: Preferred stock, $0.01 par value, authorized 50,000,000 shares; none issued and outstanding — — — Common stock, $0.01 par value, authorized 300,000,000 shares; 66,466,377; 68,332,961 and 72,590,530 issued and outstanding as of May 3, 2025, February 1, 2025 and May 4, 2024, respectively. 662 683 726 Additional paid-in capital 244,388 247,094 240,559 Retained earnings 1,702,182 1,756,258 1,664,236 Stockholders' equity 1,947,232 2,004,035 1,905,521 Total liabilities and stockholders' equity $ 5,180,423 $ 4,900,963 $ 4,873,879 ACADEMY SPORTS AND OUTDOORS, STATEMENTS OF CASH FLOWS(Unaudited)(Amounts in thousands) Thirteen Weeks Ended May 3, 2025 May 4, 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 46,084 $ 76,465 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 30,150 28,853 Non-cash lease expense 12,665 6,137 Equity compensation 7,542 6,138 Amortization of deferred loan and other costs 649 624 Deferred income taxes (903 ) (1,726 ) Write off of deferred loan costs — 449 Changes in assets and liabilities: Accounts receivable, net (110 ) 5,671 Merchandise inventories, net (251,195 ) (162,652 ) Prepaid expenses and other current assets 35,863 15,129 Other noncurrent assets (4,566 ) (3,392 ) Accounts payable 231,762 186,475 Accrued expenses and other current liabilities 24,848 20,819 Income taxes payable 16,322 21,922 Other long-term liabilities 8,361 (1,235 ) Net cash provided by operating activities 157,472 199,677 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (50,830 ) (32,227 ) Purchases of intangible assets (158 ) (128 ) Net cash used in investing activities (50,988 ) (32,355 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from Revolving Credit Facilities — 3,900 Repayment of Revolving Credit Facilities — (3,900 ) Repayment of Term Loan (750 ) (750 ) Debt issuance fees — (5,690 ) Repurchase of common stock for retirement (99,031 ) (122,425 ) Proceeds from exercise of stock options 1,516 2,789 Taxes paid related to net share settlement of equity awards (3,328 ) (2,839 ) Dividends paid (8,716 ) (8,182 ) Net cash used in financing activities (110,309 ) (137,097 ) NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (3,825 ) 30,225 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 288,929 347,920 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 285,104 $ 378,145 ACADEMY SPORTS AND OUTDOORS, OF GAAP TO NON-GAAP FINANCIAL MEASURES(Unaudited)(Amounts in thousands) We define 'Adjusted EBITDA' as net income (loss) before interest expense, net, income tax expense and depreciation, and amortization, and impairment, and other adjustments included in the table below. We define 'Adjusted EBIT' as Adjusted EBITDA less depreciation and amortization. We describe these adjustments reconciling net income (loss) to Adjusted EBITDA and Adjusted EBIT in the following table. Thirteen Weeks Ended May 3, 2025 May 4, 2024 Net income $ 46,084 $ 76,465 Interest expense, net 9,044 9,486 Income tax expense 16,944 21,187 Depreciation and amortization 30,150 28,853 Equity compensation (a) 7,542 6,138 Write off of deferred loan costs — 449 Adjusted EBITDA $ 109,764 $ 142,578 Less: Depreciation and amortization (30,150 ) (28,853 ) Adjusted EBIT $ 79,614 $ 113,725 (a) Represents non-cash charges related to equity based compensation, which vary from period to period depending on certain factors such as the timing and valuation of awards, achievement of performance targets and equity award forfeitures. We define 'Adjusted Net Income' as net income (loss) plus other adjustments included in the table below, less the tax effect of these adjustments. We define 'Adjusted Earnings per Common Share, Basic' as Adjusted Net Income divided by the basic weighted average common shares outstanding during the period and 'Adjusted Earnings per Common Share, Diluted' as Adjusted Net Income divided by the diluted weighted average common shares outstanding during the period. We describe these adjustments reconciling net income (loss) to Adjusted Net Income, and Adjusted Earnings Per Common Share in the following table (amounts in thousands, except per share data): Thirteen Weeks Ended May 3, 2025 May 4, 2024 Net income $ 46,084 $ 76,465 Equity compensation (a) 7,542 6,138 Write off of deferred loan costs — 449 Tax effects of these adjustments (b) (2,029 ) (1,432 ) Adjusted Net Income $ 51,597 $ 81,620 Earnings per common share: Basic $ 0.69 $ 1.03 Diluted $ 0.68 $ 1.01 Adjusted earnings per common share: Basic $ 0.77 $ 1.10 Diluted $ 0.76 $ 1.08 Weighted average common shares outstanding: Basic 67,122 73,993 Diluted 68,170 75,798 (a) Represents non-cash charges related to equity based compensation, which vary from period to period depending on certain factors such as the timing and valuation of awards, achievement of performance targets and equity award forfeitures. (b) Represents the tax effect of the total adjustments made to arrive at Adjusted Net Income at our historical tax rate. Low Range* High Range* Fiscal Year EndingJanuary 31, 2026 Fiscal Year EndingJanuary 31, 2026 Net Income $ 350 $ 410 Equity compensation (a) 25 25 Adjusted Net Income $ 375 $ 435 Earnings Per Common Share, Diluted $ 5.10 $ 5.90 Equity compensation (a) 0.35 0.35 Adjusted Earnings Per Common Share, Diluted $ 5.45 $ 6.25 * Amounts presented have been rounded. (a) Adjustments include non-cash charges related to equity-based compensation (as defined above), which may vary from period to period. We define 'Adjusted Free Cash Flow' as net cash provided by (used in) operating activities less net cash used in investing activities. We describe these adjustments reconciling net cash provided by operating activities to adjusted free cash flow in the following table (amounts in thousands): Thirteen Weeks Ended May 3, 2025 May 4, 2024 Net cash provided by operating activities $ 157,472 $ 199,677 Net cash used in investing activities (50,988 ) (32,355 ) Adjusted Free Cash Flow $ 106,484 $ 167,322
