Sporting goods retailer Academy Sports & Outdoor (NASDAQ:ASO) fell short of the market’s revenue expectations in Q1 CY2025, with sales flat year on year at $1.35 billion. On the other hand, the company’s outlook for the full year was close to analysts’ estimates with revenue guided to $6.12 billion at the midpoint. Its non-GAAP profit of $0.76 per share was 14.7% below analysts’ consensus estimates.

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Academy Sports (ASO) Q1 CY2025 Highlights:

• Revenue: $1.35 billion vs analyst estimates of $1.37 billion (flat year on year, 1.5% miss)

• Adjusted EPS: $0.76 vs analyst expectations of $0.89 (14.7% miss)

• Adjusted EBITDA: $109.8 million vs analyst estimates of $120.7 million (8.1% margin, 9.1% miss)

• The company dropped its revenue guidance for the full year to $6.12 billion at the midpoint from $6.18 billion, a 1% decrease

• Management lowered its full-year Adjusted EPS guidance to $5.85 at the midpoint, a 2.1% decrease

• Operating Margin: 5.1%, down from 7.5% in the same quarter last year

• Free Cash Flow Margin: 7.9%, down from 12.3% in the same quarter last year

• Locations: 303 at quarter end, up from 284 in the same quarter last year

• Same-Store Sales fell 3.7% year on year (-5.7% in the same quarter last year)

• Market Capitalization: $2.95 billion

“During the first quarter we saw continued progress across our strategic initiatives, including the opening of five new stores, and the biggest brand launch in the Company's history with the addition of the Jordan Brand,” said Steve Lawrence, Chief Executive Officer.

Company Overview

Founded in 1938 as a tire shop before expanding into fishing equipment, Academy Sports & Outdoor (NASDAQ:ASO) sells a broad selection of sporting goods but is still known for its outdoor activity merchandise.

Sales Growth

A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul.

With $5.92 billion in revenue over the past 12 months, Academy Sports is a mid-sized retailer, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale.

As you can see below, Academy Sports’s 3.8% annualized revenue growth over the last six years (we compare to 2019 to normalize for COVID-19 impacts) was sluggish.

This quarter, Academy Sports missed Wall Street’s estimates and reported a rather uninspiring 0.9% year-on-year revenue decline, generating $1.35 billion of revenue.

Looking ahead, sell-side analysts expect revenue to grow 5.2% over the next 12 months, similar to its six-year rate. This projection is noteworthy and implies its newer products will catalyze better top-line performance.