Academy Sports and Outdoors, Inc. is a leading full-line sporting goods and outdoor recreation retailer in the U.S., operating 303 stores across 21 states. The company reported its first-quarter results for fiscal 2025, revealing a net sales figure of $1.35 billion, a decline of 0.9% compared to the same quarter in the previous year, which reflects a comparable store sales decrease of 3.7%.

In the first quarter, Academy’s diluted earnings per share (EPS) was $0.68, while adjusted EPS stood at $0.76, marking a decline of 32.7% and 29.6%, respectively, from the prior year’s figures. The comparable sales decrease followed a 5.7% decline in the same quarter the previous year. Gross margin was reported at 34%, which is an increase of 60 basis points from the prior year, driven by improvements in merchandise margin and a reduction in shrink.

Selling, general, and administrative (SG&A) expenses increased to 28.8% of sales, an increase of 290 basis points, attributed to investments in growth initiatives, digital and supply chain technology, and higher labor costs associated with new store openings and brand expansions. The increase in SG&A included $36 million primarily due to new store support and the rollout of the Jordan Brand initiative.

The company maintained its cash position with $285 million at the end of the quarter and generated $158 million in cash flow from operations. Academy has committed to return $108 million to shareholders through share buybacks and dividends while reopening five new stores in the first quarter. The outlook for fiscal 2025 was broadened, with sales guidance revised to a range of $5.97 billion to $6.26 billion and comparable sales growth expectations adjusted to a range from negative 4% to positive 1%.

Key actions highlighted during the quarter include initiatives to mitigate tariff impacts by pulling forward domestic inventory receipts at pre-tariff prices, resulting in elevated inventory per store, which was up 6.5% in units and 7.8% in dollars. The company aims to reduce its exposure to goods sourced from China from about 9% to approximately 6% by the end of the fiscal year.

As Academy navigates challenges within a choppy consumer environment, it remains focused on its strategic initiatives for growth, which include the expansion of physical stores and the development of its eCommerce business, which recorded a 10% sales increase in the quarter. The combination of ongoing inventory management, strategic pricing, and brand offerings is intended to support the firm’s position as a value leader in the sports and outdoor retail market.