Academy Sports and Outdoors, Inc. Q1 FY2025 earnings call

• Tariffs: Navigating additional tariffs by pausing shipments from China, reducing exposure to Chinese products, leveraging balance sheet to pull in domestic inventory, using pricing optimization, and working with branded partners. - Segment Performance: Sales details and category breakdowns. - Strategic Initiatives: New store expansion with 5 openings in Q1, aiming for 20-25 new stores in 2025; eCommerce growth with 10% sales increase on academy.com; store productivity initiatives including Jordan Brand launch in 145 doors, RFID rollout, and marketing campaigns like 'Fun Can't Lose' with increased advertising spend and loyalty program expansion.

Sales for the first quarter of fiscal 2025 were $1.35 billion, a 0.9% decrease from the previous year, translating to a negative 3.7% comp. Apparel and footwear were the strongest segments, running roughly flat to last year, with Sports & Recreation closely following. Outdoor was down low single digits, but fishing, firearms, and coolers/drink posted solid increases. eCommerce saw a 10% sales increase, with academy.com growing in penetration to over 10%. Revenue contribution: Apparel, footwear, and sports/recreation were key segments, with eCommerce showing growth.

Updated guidance ranges: Sales expected to be between $5.97 billion and $6.26 billion, comp sales from negative 4% to positive 1%, gross margin unchanged, EPS from $5.10 to $5.90, and adjusted EPS from $5.45 to $6.25, accounting for multiple tariff scenarios.

Tariff uncertainties, fragile state of the U.S. consumer, inflationary pressures, and potential disruptions from changing trade policies.

Q: Tariff impact on F'26 and gross margin guidance?

A: Steve Lawrence emphasized diversified sourcing, and Earl Carlton Ford explained guidance models considering different tariff scenarios and inventory pull forward.

Q: April comp ex Easter shift?

A: Steve Lawrence said total April comp was mid- to low single digits.

Q: Margins and inventory pull forward?

A: Earl Carlton Ford and Steve Lawrence discussed how the pulled forward inventory (evergreen products) won't have markdown impact, and SG&A normalization expected as growth initiatives play out.