Academy Sports and Outdoors Inc Q3 2025 Earnings Call Transcript

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

Question: Paul Lejuez - Citi Infrastructure Investments LLC - Analyst : Curious if we could start with the average, the ticket increase of 3.3%. If you could talk about AUR versus UPT, the buildup to get to that ticket. And then I'm curious what sort of price increases were taken in the third quarter? And relative to the costs that were running through the P&L, I know you brought in some inventory early, so I'm wondering if there was like a temporary mismatch between the prices that you took benefit in the gross margin versus how those tariff costs run through the P&L? And what is the dynamic for 4Q and even beyond as we look out to first half of '26?

Question: Paul Lejuez - Citi Infrastructure Investments LLC - Analyst : And just a follow-up. What sort of price increases should we expect to see in the fourth quarter relative to the third? And will that be the peak of the price increases? Or does it get even higher as we look out to the first half?

Question: Pedro Gil - Morgan Stanley & Co Ltd - Analyst : This is Pedro on for Simeon. Nice job with the continued rollout of the Jordan brand. Could you give us some color on what the contribution looks like that you're seeing at the store level in terms of sales, margin, what the continued rollout looks like in the next year? And as a follow-up, you've talked in the past about other brand partners like Levi, Adidas, Under Armour, you've mentioned. Can you give us an idea of the pipeline in terms of new or expanded collaborations with brand partners?

Question: Jolie Wasserman - JPMorgan Chase & Co - Analyst : This is Jolie on for Chris. Just following up on that Nike expansion, Jordan launch question. Since Academy is still negative, would it be fair to assume that the lift from that combined brand is less than you originally expected, considering I believe last quarter was meaningful double-digit, this quarter more high single digit? Or is it more so that the consumer is just worse given broader macro trends and uncertainty?

Question: Jolie Wasserman - JPMorgan Chase & Co - Analyst : That makes sense. And our follow-up question is on the implied 4Q comp guide. Our math, we're getting down 3.5 to an up 3.5, which is a wide range for the fourth quarter. So we were curious why the range is so wide and what the puts and takes are of hitting the high and low end? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 09, 2025 / 3:00PM, ASO.OQ - Q3 2025 Academy Sports and Outdoors Inc Earnings Call

Question: Emily Ghosh - Goldman Sachs Group Inc - Analyst : Hi, this is Emily Ghosh on for Kate. We were wondering, how would you characterize the health of the Academy customer? And how does the level of trade in that you saw again from upper income customers compared to what you saw in the second quarter?

Question: Daniel Silverstein - UBS AG - Analyst : This is Dan Silverstein on for Michael. Maybe just to start, with merchandise margins up 120 basis points in 3Q, inventory units sound like they're in a healthy position, what are the potential pressure points for the fourth quarter gross margin outlook?

Question: Daniel Silverstein - UBS AG - Analyst : Very helpful. And then just a follow-up. As your recent vintages of store openings have continued to get more productive, does this help provide a floor for what you think is achievable from a comp perspective next year? I think you cited a high single-digit comp for those recent store openings a very healthy level. So just wondering how that evolves from here.

Question: Madeline Cech - Bank of America Securities - Analyst : Hi. This is Maddie Cech on for Robby Ohmes. I just wanted to ask how Black Friday promos compared to last year? And what's the risk that you need to be more promotional later in the quarter based on what happens in retail overall? And given Foot Locker stands to be more aggressive with clearance this holiday in footwear.

Question: Madeline Cech - Bank of America Securities - Analyst : Appreciate it. And can you talk about where you're raising price within your assortment versus where you might have seen some unit degradation?

Question: Anna Glaessgen - B. Riley Securities Holdings Inc - Analyst : I'd like to turn back to the ammunition commentary. I believe that ammo and firearm together are less than 10% of sales. So surprised by the magnitude of impact that, I guess, ammo had on the quarter. So maybe if you could just expand on that, maybe there's a seasonal aspect because 3Q captures the hunt season. And then secondly, as we've seen some stabilization in ammo post election, is it possible at this new stable level but still negative, you can drive a positive comp?

Question: Joseph Civello - Truist Securities - Analyst : First off, how should we be thinking about the potential growth contribution from Nike and Jordan in '26 versus 2025? I know you'd be lapping a tougher brand-specific comp, but offsetting that, you'll have a broader assortment for the full year, incremental doors and the World Cup.

Question: Joseph Civello - Truist Securities - Analyst : Got it. And then also, can you just give any color on the margin benefits you're seeing from the inventory pulled forward prior to tariffs?

Question: Angus Kelleher-Ferguson - Barclays Services Corp - Analyst : This is Angus Kelleher on for Adrienne Yih. I wanted to ask about the percent of product price increases implemented in fall 2025 and expected price increases for spring 2026? And then just curious, since you cited AUR running mid-high single digits and transactions down 4%, where are you seeing the elasticity thresholds by category? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 09, 2025 / 3:00PM, ASO.OQ - Q3 2025 Academy Sports and Outdoors Inc Earnings Call

Question: Zachary Beeck - Robert W. Baird & Co Inc - Analyst : This is Zach Beeck on for Justin. A couple on modeling. Q4 guidance seems to imply SG&A dollars are below Q3, which is unlike the normal sequential trend in your SG&A. So what is driving the lower SG&A figure in Q4? And how sustainable is this dynamic as you think about the shape of dollar growth next year? And then Carl, you mentioned resuming buybacks in Q4. Guidance implies a good free cash flow quarter. Can you maybe decide how this buyback plan compares to what you did in Q1?

Question: Cristina Fernandez - Telsey Advisory Group LLC - Analyst : I wanted to ask about the high-income consumer that's coming to Academy. Do you have a sense of were they previously shopped or where those market share gains are coming from? And then my second question is around private brands. How are those performing? And do you see -- are you seeing consumers trade into or trade down to private brands as pricing has increased for natural brands?