Academy Sports and Outdoors Inc Q2 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Christopher Horvers - JPMorgan Chase & Co - Analyst : Thanks. Good morning, guys. So my first question is about the consumer. You gave us great detail in terms of the different cohorts. Over the past couple of years, you've seen some pretty episodic shopping in between events, strong memorial days, strong labor days, but the valleys in between tended to be softer. So can you talk a talk about what you've seen sort of post the back-to-school period in the August time frame. Do you think those valleys could actually attenuate as you get later into the year?

Question: Christopher Horvers - JPMorgan Chase & Co - Analyst : Yeah. And then on the ticket front, can you talk about how much of the ticket benefited from tariff pricing. And as you think about you working through this with the brands, and obviously, you have a big private brand penetration in your box. Will that -- will tariff pricing pressures complete in the back half of the year? Or would you expect more pricing in the first half of 2026 as sort of the brands catch up with the costs that they've incurred?

Question: Greg Melich - Evercore Inc - Analyst : I wanted to follow up on the gross margins in the quarter. You mentioned shrink and the cost of e-commerce, I think being a headwind of 40 or 50 bps. How do you see that playing out in the back half? And then second, my follow-up was just, could you level set us given all the things you've done to mitigate on tariffs? What percentage of your COGS now are imported from various countries?

Question: Greg Melich - Evercore Inc - Analyst : Got it. And if I could follow up on just that one particular point. I think in inventory, you said AUR was up around 8%. So should we think of that as a proxy of what would happen to ticket AUR in the coming quarters? Is that flows through? Is that a fair way to think about it?

Question: Greg Melich - Evercore Inc - Analyst : All right, thanks and good luck.

Question: Brian Nagel - Oppenheimer & Co Inc - Analyst : So when -- well, congrats the positive comp. I know we've been talking about things is for a while. So congrats. The question I want to ask is -- and this is somewhat repetitive, but as you look at particularly as the comps have strengthened through this year and even in the quarter, is there any -- what's the reason why that momentum would not continue through the back half there? I mean recognizing you're probably actually conservative with the guidance. But you're looking at the business, is there any reason why that momentum should not continue?

Question: Brian Nagel - Oppenheimer & Co Inc - Analyst : That's very helpful. My follow-up question just on tariffs. I think you mentioned, this is probably in response to another question, but you're starting to adjust prices here. Are you seeing any impacts upon demand as these higher prices are starting to roll through?

Question: Brian Nagel - Oppenheimer & Co Inc - Analyst : I appreciate it. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 02, 2025 / 2:00PM, ASO.OQ - Q2 2025 Academy Sports and Outdoors Inc Earnings Call

Question: Kate McShane - Goldman Sachs Group Inc - Analyst : Hi, good morning. Thanks for taking our question. Our question just was going to be focused on Nike and Jordan. Just any more detail that you could give around the performance, I believe you said up double digit, but any more detail there? And can you talk about the exclusivity of both the Nike and Jordan product as you continue to see increased points of distribution by the brand?

Question: Kate McShane - Goldman Sachs Group Inc - Analyst : Thank you.

Question: Anthony Chukumba - Loop Capital Markets LLC - Analyst : Morning, thanks for taking my question. Also I wanted to just kind of follow up on Kate's question. I guess how does your Jordan brand assortment, just in terms of the overall size of the assortment, compared now to when you first launched it? And then how much more assortment expense do you anticipate over the remainder of the year? Thank you.

Question: Anthony Chukumba - Loop Capital Markets LLC - Analyst : That's helpful. Thank you.

Question: Jonathan Matuszewski - Jefferies LLC - Analyst : Great, good morning and thanks for taking my questions. The first one was on just spending by customer cohorts. I think you talked about the lower-income consumer a bit, but hoping you could zero in on any disparities in shopping patterns across different ethnicities, including the Hispanic consumer. Is the underperformance there widening, narrowing or consistent versus prior periods? That's my first question.

Question: Jonathan Matuszewski - Jefferies LLC - Analyst : That's helpful. And then a quick follow-up. You mentioned improved in stocks from the RFID initiative. And I think just the Georgia DC. Is there a way to dimensionalize maybe the frequency of out-of-stocks you're seeing today versus the magnitude of potential improvement in conversion in the quarters ahead? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 02, 2025 / 2:00PM, ASO.OQ - Q2 2025 Academy Sports and Outdoors Inc Earnings Call

Question: Justin Kleber - Robert W. Baird & Co. Incorporated - Analyst : Hey, good morning, guys. Thanks for taking the questions. First one for me, just around future brand access. Specifically, if you started to see the launch of Jordan and the expanded Nike assortment, is that helping break down any historical barriers and allowing you to gain access or at least you have new conversations with brands that previously would not sell to you?

Question: Justin Kleber - Robert W. Baird & Co. Incorporated - Analyst : Yeah, that's helpful. Thanks, Steve. And then a question for Carl on the gross margin guide. It seems about 50 basis points of expansion in the back half at the midpoint, which is a bit stronger than the first half. So obviously, tariffs, I think, are going to have a bigger impact as we move deeper into the year. So can you just outline the drivers of expansion you see in the back half, thinking about your view on merch margins versus cycling over some of these elevated freight and supply chain costs that you referenced?

Question: Justin Kleber - Robert W. Baird & Co. Incorporated - Analyst : All right, thanks for the call guys. Best of luck.

Question: John Kernan - Cowen and Company LLC - Analyst : Good morning guys, thanks for taking the question. Carl, can you talk to new store productivity the productivity from the new boxes, it looks like omnichannel sales per foot is still under some pressure here. I'm just curious what your assumptions are as you ramp store openings in the back half of the year. And I got a quick follow-up for Steve.

Question: John Kernan - Cowen and Company LLC - Analyst : That's helpful. Thanks. And then, Steve, you talked about some pretty significant AUR increases in some categories in the back half of the year. I'm just curious how you're planning for that within the comp guidance given the middle to lower income consumers under a little bit more pressure here?

Question: John Kernan - Cowen and Company LLC - Analyst : That's helpful, thanks.