Academy Sports' third quarter saw a positive market reaction despite revenue coming in slightly below Wall Street’s expectations. Management attributed the quarter’s performance to strong growth from new store openings, gains in higher-income customer segments, and accelerated e-commerce momentum. CEO Steve Lawrence highlighted that “consumers are shopping episodically and seeking out values,” with positive responses during key back-to-school and holiday periods. The company also pointed to improved product assortment—especially with national brands like Nike and Jordan—and technology investments in inventory management as supporting margin expansion. Management noted that average unit retail prices rose mid to high single digits, offsetting cost pressures from tariffs.
Is now the time to buy ASO? Find out in our full research report (it’s free for active Edge members).
Academy Sports (ASO) Q3 CY2025 Highlights:
- Revenue: $1.38 billion vs analyst estimates of $1.40 billion (3% year-on-year growth, 1.3% miss)
- Adjusted EPS: $1.14 vs analyst estimates of $1.06 (7.5% beat)
- Adjusted EBITDA: $141.5 million vs analyst estimates of $136.4 million (10.2% margin, 3.8% beat)
- The company reconfirmed its revenue guidance for the full year of $6.11 billion at the midpoint
- Management lowered its full-year Adjusted EPS guidance to $5.90 at the midpoint, a 0.8% decrease
- Operating Margin: 7.3%, in line with the same quarter last year
- Locations: 317 at quarter end, up from 293 in the same quarter last year
- Same-Store Sales were flat year on year (-4.9% in the same quarter last year)
- Market Capitalization: $3.65 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Academy Sports’s Q3 Earnings Call
- Paul Lejuez (Citi): Asked about the sustainability of ticket increases and the interplay between pricing actions, tariffs, and gross margin. CEO Steve Lawrence and CFO Carl Ford explained that AURs rose as planned, offsetting unit declines, and that tariff-driven costs will be reflected in stable gross margins moving forward.
- Simeon Gutman (Morgan Stanley): Questioned the sales and margin contribution of the Jordan and Nike brand expansions. Lawrence stated the initiatives are meeting expectations, with high single-digit growth, and further rollout should continue to drive incremental gains.
- Christopher Horvers (JPMorgan): Sought clarity on the wide range for fourth-quarter comparable sales guidance. Ford attributed the range to uncertainty in consumer response to higher average unit prices and the impact of promotional activity.
- Kate McShane (Goldman Sachs): Probed the health and mix of Academy’s customer base, specifically the sustained gains in higher-income cohorts. Lawrence noted that while lower-income customer traffic remains pressured, the shift toward higher-income shoppers is structurally changing the company’s customer portfolio.
- Maddie Check (Bank of America): Asked about promotional activity and the risk of needing deeper discounts later in the quarter. Lawrence indicated Black Friday promotions were consistent with last year, with broad-based but disciplined approaches across categories.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) the pace and productivity of new store openings in both legacy and new markets, (2) the trajectory of e-commerce penetration and loyalty program engagement, and (3) the company’s ability to manage gross margin through pricing and inventory discipline amid ongoing tariff and consumer pressures. Progress in expanding premium product partnerships and further technology investments will also be key signposts.
Academy Sports currently trades at $54.72, up from $48.85 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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