ASO Reports Results

Academy Sports and Outdoors achieved an 18% increase in e-commerce sales during the second fiscal quarter of 2025, surpassing the 10% growth in the first quarter. The company improved its digital platform with better navigation, a wider variety of products, and new mobile devices for in-store order fulfillment, which increased online penetration by 120 basis points.

“Our online business grew approximately 18% during Q2 and increased its Points by 120 basis Points. This adds to the 10% increase in the first quarter. It’s also good to see that we improved our sales trajectory while maintaining our gross Margin rate essentially flat compared to last year at 36%,” said Steven Paul Lawrence, CEO.

This sustained momentum in e-commerce positions the company as a leader in omnichannel execution, setting it apart from competitors slower to adapt to digital trends.

Market Share Gains and Expansion of Premium Brands

The company reported significant market share gains in apparel, footwear, sporting goods, and outdoor cooking, supported by the expansion of premium brands like Nike and Jordan, as well as new launches such as Berlabo and Waggle. Traffic from higher-income households grew double-digit, and its loyalty program surpassed 12 million members.

“We are pleased to see significant participation gains in nearly all our key businesses such as apparel, footwear, sporting goods, fishing, and outdoor cooking. Customers are gravitating toward our diversified assortment, and our value proposition resonates with them, resulting in comparable sales growth and solid Points gains during the quarter,” Lawrence stated.

Tariff Management and Inventory

Amid U.S. tariff volatility, the company diversified its sourcing, pre-tariff inventory, collaborated with suppliers, and optimized prices to reduce its exposure to imported products from China to a mid-single-digit percentage of cost of goods sold by year-end. The company ended the quarter with $31 million in cash and maintained strong Liquidity with a $1 billion unused credit line.

“We believe we have a strategy that should largely offset the impacts of tariffs for the rest of the year, while continuing to serve customers and deliver a solid value proposition,” Lawrence explained.

Outlook

Management adjusted its full-year comparable sales guidance to a range of -3% to +1% and expects a gross Margin between 34.0% and 34.5%. The company plans to open between 20 and 25 new stores in 2025 and anticipates continued growth in e-commerce and market share gains, while monitoring consumer health and tariff impacts.

I wonder if they will really be able to maintain that Margin with the current tariff pressure. Personally, I see risks in their reliance on premium brands in an environment where consumers are increasingly cautious with their spending.