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May 03
Academy Sports Q1 2025 Earnings Report
Academy Sports reported a decline in sales and net income in Q1 2025 but saw positive momentum in April and continued strategic expansion.
Key Takeaways
Academy Sports delivered Q1 results with slightly lower revenue and profit amid economic pressures. Despite a 3.7% decline in comparable sales, the company saw eCommerce growth and opened five new stores, expanding into two new states.
Revenue declined by 0.9% year-over-year to $1.35B.
Net income was $46.1M, down from $76.5M last year.
eCommerce sales increased 10.2%, showing digital strength.
Five new stores were opened, expanding into Pennsylvania and Maryland.
Academy Sports
Academy Sports
Forward Guidance
Academy revised its fiscal 2025 guidance to account for tariff risks and uncertain demand, but maintained confidence in its high-end outlook.
Positive Outlook
- Maintained high-end revenue guidance at $6.265B.
- Expected gross margin rate to hold between 34.0% and 34.5%.
- Continued store expansion plans (20–25 new stores in FY25).
- Strong private label performance supports margins.
- High-income consumer traffic showed continued strength.
Challenges Ahead
- Lowered low-end revenue guidance to $5.97B.
- EPS range widened to $5.10–$5.90 due to tariff uncertainty.
- Guidance reflects potential downside from inflation pressures.
- Free cash flow expected to decline from prior year.
- Ongoing macroeconomic uncertainty may weigh on consumer demand.