Academy Sports reveals 2026 expansion plans; Q3 sales up 3%
Academy Sports and Outdoors expressed confidence about the holiday season on the heels of a "record" Black Friday.
The Texas-based sporting goods and outdoor recreation retailer reported its third-quarter results as it continues is to expand its footprint. Academy has opened a total of 24 stores in fiscal 2025, bringing its total to 317 locations across 21 states.
Looking ahead, Academy plans to open 20 to 25 new locations in fiscal 2026. The company has said it sees the runway potential long-term to have 800-plus stores nationwide.
On the earnings call, CEO Steve Lawrence said Academy said that a store opening in a new or underserved market translates into market share gains.
“In many cases, these gains come from smaller independents who lack our scale and pricing power, or, in some cases, from larger players that do not offer the value and diversity of assortment we carry,” he told analysts.
The company’s net income rose 8.8% to $71.6 million, or $1.05 per share, in the quarter ended Nov. 1, from $65.8 million, or $0.92 per share, in the year-ago period. Adjusted earnings came in at $1.14 a share, topping analysts’ estimate of $1.06 per share.
Sales rose 3% to $1.38 billion. Comparable sales edged down 0.9%. Academy’s e-commerce sales jumped 22.2%.
"We continue to see an acceleration in our underlying growth strategies, despite the uncertain economic backdrop the consumer is facing," Lawrence stated in the earnings release. “The start to holiday aligned with our expectations, capped off by a record Black Friday event. The momentum we are seeing in early holiday results reinforces that our position as the value leader in our space is resonating with consumers, and is driving market share gains.”
Based on the results from the first three quarters and the expectations for the remainder of fiscal 2025, Academy narrowed the low end of it sales guidance from -3.0% to -2.0% and the high end from +1.0% to flat It also raised the low end of our gross margin guidance to 34.3% from 34.0%.
“The third quarter performed in-line with our expectations, and led to outperformance across our profit metrics including growth in gross margin, operating profit and net income," said Carl Ford, CFO.
Academy stores offer apparel, footwear, sports and camping equipment, hunting and fishing gear, outdoor cooking and more from top national brands as well as the chain’s private label brands.
In addition, the retailer offers free services such as grill and bike assembly, scope mounting, bore sighting, line winding/spooling and propane exchange. Hunting and fishing licenses are also available to purchase in stores.
