Academy Sports and Outdoors, Inc. Q3 FY2025 earnings call

• New store openings: In Q3, 11 new stores were opened, with most in core geography; plan to open 20-25 stores next year, 80% in legacy/existing markets. - Omnichannel growth: .com channel grew 22% in Q3, penetration to total sales at 10.4%. - Existing store productivity: Refining assortment with Nike, Jordan, and other brands; investing in technology like RFID scanners; expanding loyalty program to drive traffic and conversions.

For the third quarter, Sports and Rec was the strongest division with a 6% increase. Apparel sales grew 3%, driven by national brands like Nike, Jordan, etc., and private brands like Magellan and Freely. Footwear grew 2% with performance running brands. Outdoor business grew 2%, though ammo saw softness post-election but improved. Nike and Jordan brands combined drove high single-digit growth.

• Comp sales guidance range narrowed from negative 3% to negative 2% low end and flat to plus 1% high end, now between negative 2% to flat. - Plan to begin share repurchases in Q4, with capital allocation focused on balanced deployment including dividends, strategic investments, and repurchases.

• Consumer spending: Consumers shopping episodically and seeking value, with lower-income cohorts showing traffic erosion. - Tariffs: Impact on inventory costs and pricing. - Competition: Competitors' pricing and assortment affecting market share.

Q: Curious about average ticket increase, AUR vs UPT, and price increases in Q3 and beyond A: AURs up mid to high single digits, UPT down mid-single digits; pricing changes through clearance, promotion, and some direct price hikes, with Q4 AURs expected to be up high single to low double digits and plateauing Q: Color on Jordan brand contribution and new brands A: Jordan and Nike combined drove high single-digit comps, with elements rolled out to all stores; continuing to bring in new brands across the store footprint, including digitally native ones Q: Implied fourth quarter comp guide range A: Wide range due to AUR offset by unitary degradation; downside if consumer response worsens, upside based on consumer response to promotions Q: Health of Academy customer and trade-in from upper-income customers A: Upper-income customers (over $100k) growing in high single digits, middle-income steady, lower-income showing less erosion; derisking customer base by reducing exposure to lower-income consumers under economic pressure Q: E-commerce results and store market mix A: E-commerce growth above expectations, driven by site improvements; new stores drive .com demand; plan to open 80% of new stores in legacy/existing markets due to better ROIC and brand awareness