Shares for Academy Sports + Outdoors dipped over 5 percent in pre-market trading on Tuesday after the retailer narrowly missed analyst expectations in the second quarter.
The Katy, Texas-based retailer reported on Tuesday that net sales in the second quarter of fiscal 2025 increased 3.3 percent to $1.60 billion, up from $1.55 billion the same time last year. Net income in Q2 fell 12.1 percent to $125.4 million, down from $142.6 million, while adjusted earnings per share dipped 4.4 percent to $1.94 versus $2.03 the same time last year.
These results came in slightly below analyst expectations, which were projecting net sales of $1.61 billion in Q2 and adjusted earnings per share of $2.13, according to Yahoo Finance.
Still, Steve Lawrence, chief executive officer of Academy Sports, said in a statement that the company is “pleased” to see sales inflect to a positive comp in the second quarter, driven by steady improvements in the business.
“Customers are gravitating to our diversified assortment and our value proposition is resonating with them, which has allowed us to pick up market share in the first half of the year,” Lawrence said.
Carl Ford, chief financial officer of Academy, added that the company believes it now has additional visibility into tariff impacts and is “well positioned” to mitigate them.
The retailer has partnered with factories and vendors to absorb a portion of the incremental expense; working with overseas partners to shift country of origin where it made sense; adjusting unit buys where needed; pulling in additional inventory from brands that had available goods in domestic warehouses; and utilizing pricing optimization tools to create strategies to drive higher average unit retails.
Looking ahead, the company is narrowing the low end of its sales guidance based on the expectations for the remainder of fiscal 2025.
The company now expects net sales for the year between $6.00 billion and $6.27 billion, which is between a loss of 3.0 percent to an increase of 1.0 percent. This is up from its previous guidance, which called for net sales between $5.97 billion and $6.27 billion, which is between a loss of 4.0 percent to an increase of 1.0 percent
“As we head into the back half of the year, we believe momentum is building in the business and we are confident in our strategy and ability to come out of this year better positioned than ever to serve our customers and drive long-term growth,” Lawrence added.