Key Takeaways
- Academy posted $6.05 billion in full-year net sales, up 2.0% year over year, marking its first return to top-line growth in two years while continuing to gain market share.
- Same-store sales declined 1.5% for the full year, but improved meaningfully from the 5.1% decline in FY2024. Q4 transactions fell 6.4%, offset by a 5.1% increase in average ticket.
- Higher-income households (over $100,000 annually) drove low double-digit traffic increases, while lower-income shoppers declined by high single digits, revealing a widening gap in sporting goods spending.
- Academy opened 24 new stores in FY2025, up from 16 the prior year, growing from 298 to 322 locations across 21 states. Plans call for 20 to 25 additional openings in FY2026.
- FY2026 guidance calls for $6.18 to $6.36 billion in net sales with same-store sales ranging from negative 1% to positive 2%, aided by international sporting events and continued new store expansion.
First Top-Line Growth in Two Years, Driven by New Stores and Higher Ticket
Academy Sports + Outdoors reported fourth quarter and full year 2025 results on March 17, 2026, confirming what CEO Steve Lawrence called “an inflection point” for the Katy, Texas-based retailer. After two consecutive years of same-store sales declines, Academy returned to top-line revenue growth and continued gaining market share.
Full-year net sales reached $6.05 billion, up 2.0% from $5.93 billion in FY2024. Same-store sales declined 1.5%, a meaningful improvement from the prior year’s 5.1% drop. That growth was fueled entirely by new store openings and higher average ticket sizes rather than increased store traffic.
Fourth quarter net sales rose 2.5% to $1.72 billion. Same-store sales fell 1.6%, with transactions declining 6.4% and average ticket rising 5.1%. Gross margin expanded 140 basis points in Q4 to 33.6%, driven primarily by supply chain efficiencies. CFO Carl Ford credited improvements in transportation and distribution center operations, including the rollout of Manhattan Active warehouse management technology.
For the full year, gross margin expanded 90 basis points to 34.8%. However, operating income declined 4.9% to $512.2 million as SG&A expenses grew faster than revenue, pushing operating margin down 60 basis points to 8.5%. Full-year net income fell 9.9% to $376.8 million, and adjusted EPS came in at $5.78, down 4.0% year over year. The stock dropped approximately 4.6% in pre-market trading after Q4 adjusted EPS of $1.97 missed analyst expectations of $2.04.
A Widening Spending Gap Between Higher- and Lower-Income Sports Families
The most revealing data point from the earnings call has direct implications for the youth sports industry.
Academy is seeing a clear bifurcation in its customer base by household income. According to CEO Lawrence on the Q4 earnings call, households earning over $100,000 annually drove low double-digit traffic increases throughout FY2025, making them Academy’s largest and fastest-growing customer segment. Meanwhile, lower-income consumers saw high single-digit traffic declines throughout the year. Middle-income shoppers held roughly steady.
Lawrence framed the higher-income growth as partly intentional. Academy has been layering in trending and premium brands targeted at what he described as the “better-best end of the assortment” to expand wallet share and attract new customers. At the same time, management emphasized that Academy remains committed to its positioning as the value leader in sporting goods.
For youth sports operators and organizations focused on access and affordability, this data point is worth sitting with. When a major value-oriented retailer reports that its lower-income customers are visiting stores less frequently while higher-income households spend more, it reflects broader economic pressure on the families that youth sports organizations are often working hardest to serve. Equipment and apparel are foundational costs in youth sports participation. A sustained pullback by lower-income households at retail suggests those families are making harder tradeoffs about where discretionary dollars go.
24 New Stores Push Academy Past 300 Locations Across 21 States
Academy opened 24 new stores in fiscal 2025, up from 16 the prior year, growing its footprint from 298 to 322 locations. Total gross square footage increased 6.4% from 20.6 million to 21.9 million. Five of those stores opened in Q4 alone. Plans for FY2026 call for 20 to 25 additional openings.
Recent expansion includes new locations in Ohio and Oklahoma, signaling continued geographic diversification beyond Academy’s traditional Sun Belt strongholds. The company’s stores average roughly 68,000 gross square feet and use a localized merchandising approach that adapts product assortment to regional demand across outdoor recreation, team sports, footwear, and apparel.
Inventory per store was up 6.3% in dollars but flat in units as of January 31, 2026, reflecting a higher-priced product mix rather than overstocking. Total company inventory rose 14.9% to $1.5 billion, driven by the new store buildout and the premium brand expansion.
Digital Transformation and Capital Allocation
Lawrence positioned 2025 as a foundational year for Academy’s digital overhaul. The company is investing in data-driven personalization and building what management described as an omnichannel experience designed to deepen customer engagement. Specific details were limited, with a fuller strategy presentation expected at Academy’s April 7 Analyst Day.
Capital expenditures for FY2025 totaled $213 million. Adjusted free cash flow came in at $263 million for the full year.
Academy returned $235.5 million to shareholders through $200.8 million in share repurchases and $34.7 million in dividends. The board authorized a 15% dividend increase to $0.15 per share quarterly, marking the fourth consecutive year of dividend growth. The company ended FY2025 with $330.3 million in cash and approximately $437 million remaining on its buyback authorization. Long-term debt held steady at $480.8 million.
FY2026 Outlook: External Tailwinds Meet Persistent Consumer Pressure
Academy’s initial FY2026 guidance projects net sales of $6.18 to $6.36 billion (2% to 5% growth) with same-store sales ranging from negative 1% to positive 2%. The high end of that range would mark Academy’s first positive full-year same-store sales reading since FY2022.
CFO Ford cited external tailwinds including the 2026 FIFA World Cup on U.S. soil, increased tax refunds, and America’s 250th anniversary celebrations as potential growth catalysts. Adjusted EPS guidance of $6.10 to $6.60 represents 5.5% to 14.2% growth over FY2025. The EPS guidance excludes potential future share repurchases and assumes a tax rate of 22.0% to 23.0% on approximately 67 million diluted shares.
Management was candid that macroeconomic pressure on lower- and middle-income consumers is expected to persist throughout 2026. The low end of guidance, at negative 1% same-store sales, reflects that caution.
For the youth sports industry, Academy’s trajectory matters because it operates as one of the largest value-oriented sporting goods retailers in the country. Its 322 stores across 21 states serve as a primary equipment and apparel source for millions of youth sports families, particularly in Sun Belt markets where youth sports participation is growing fastest. The income-based traffic split reported on this earnings call is not just a retail data point. It is a direct signal about which families are increasing their investment in sport and which are pulling back.
Sources:
Academy Sports + Outdoors Fourth Quarter and Fiscal 2025 Earnings Release, March 17, 2026
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