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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Academy Sports’s Q2 Earnings Call: Our Top 5 Analyst Questions

ASO Cover Image

Academy Sports’ second quarter results drew a negative market reaction following a miss on both revenue and non-GAAP earnings relative to Wall Street expectations. Management cited improvement in sales momentum compared to prior quarters, with particular strength in e-commerce and stabilizing same-store sales. CEO Steven Paul Lawrence noted that the company saw “steady improvement with sales running positive the last seven weeks of the quarter,” highlighting growth in footwear, apparel, and the outdoor categories. The company also pointed to successful new store openings and gains in higher-income customer segments as notable contributors in a quarter marked by ongoing inflationary pressures and cautious consumer spending patterns.

Is now the time to buy ASO? Find out in our full research report (it’s free).

Academy Sports (ASO) Q2 CY2025 Highlights:

  • Revenue: $1.6 billion vs analyst estimates of $1.61 billion (3.3% year-on-year growth, 0.5% miss)
  • Adjusted EPS: $1.94 vs analyst expectations of $2.13 (9.1% miss)
  • Adjusted EBITDA: $212.5 million vs analyst estimates of $227 million (13.3% margin, 6.4% miss)
  • The company slightly lifted its revenue guidance for the full year to $6.13 billion at the midpoint from $6.12 billion
  • Management raised its full-year Adjusted EPS guidance to $5.95 at the midpoint, a 1.7% increase
  • Operating Margin: 10.8%, down from 12.3% in the same quarter last year
  • Locations: 306 at quarter end, up from 285 in the same quarter last year
  • Same-Store Sales were flat year on year (-6.9% in the same quarter last year)
  • Market Capitalization: $3.36 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 Q2 Earnings Call

  • Christopher Horvers (JPMorgan Chase) asked about episodic shopping patterns and the risk of demand softening post back-to-school. CEO Steven Paul Lawrence responded that while there was a slight pullback after back-to-school, he is optimistic as the company laps softer comps later in the year.

  • Simeon Gutman (Morgan Stanley) questioned assumptions behind operating leverage in guidance. CFO Earl Carlton Ford explained that expense control and gross margin management are key, with flexibility in SG&A depending on top-line trends.

  • Greg Melich (Evercore ISI) inquired about gross margin headwinds and the impact of tariffs on cost of goods. Ford detailed that shrink and e-commerce shipping were modest drags, but merchandise margin expansion and sourcing diversification efforts are expected to provide stability.

  • Eric Cohen (Gordon Haskett) sought clarity on the promotional environment and merchandise mix. Lawrence explained that promotional activity remains elevated versus prior years, but higher-margin categories like apparel and footwear are being prioritized for future growth.

  • Kate McShane (Goldman Sachs) probed deeper into the performance and exclusivity of Nike and Jordan products. Lawrence clarified that while exclusivity is limited, access to premium products across more locations is driving strong sales and is expected to boost holiday performance.

Catalysts in Upcoming Quarters

Going forward, our analysts will watch (1) whether digital sales growth maintains momentum as in-store traffic trends normalize, (2) the impact of expanding premium brand assortments on both average transaction values and customer mix, and (3) the effectiveness of tariff mitigation strategies in protecting margins. Execution on store openings and loyalty program engagement will also be important for tracking operational progress.

Academy Sports currently trades at $50.06, down from $53.56 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).

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