Academy Sports & Outdoors (NASDAQ:ASO) Reports Mixed Q3 Results, Beats on Earnings but Misses on Revenue

Academy Sports & Outdoors Inc (NASDAQ:ASO) reported financial results for its fiscal third quarter, delivering a mixed performance relative to Wall Street expectations. The sporting goods retailer posted earnings that surpassed analyst forecasts but fell short on the top line, leading to a nuanced market reaction in pre-market trading.

Quarterly Performance vs. Estimates

The company's results for the quarter ended November 1, 2025, presented a clear divergence between profit and revenue performance.

• Earnings Per Share (EPS): Academy reported adjusted diluted EPS of $1.14. This figure comfortably exceeded the consensus analyst estimate of $1.07.
• Revenue (Net Sales): Net sales for the quarter were $1.38 billion. This missed the analyst estimate of approximately $1.42 billion.
• Comparable Sales: The company's comparable sales, a key retail metric, decreased by 0.9%. While negative, this represents a significant improvement from the 4.9% decline reported in the same quarter last year.

Market Reaction and Revised Guidance

The market's initial response to this mixed report was cautiously positive. In pre-market trading following the release, ASO shares were up approximately 1%. This suggests investors may be placing greater emphasis on the earnings beat and the company's improved profitability metrics rather than the revenue miss.

Management provided updated guidance for the full fiscal year 2025, which offers further context for the market's reaction. The company narrowed its sales outlook, now expecting net sales between $6.025 billion and $6.200 billion. This range is notably below the current analyst sales estimate of $6.174 billion for the fiscal year. Conversely, Academy raised the low end of its gross margin guidance and maintained its adjusted EPS forecast, with a range of $5.65 to $6.15. The midpoint of this EPS guidance aligns more closely with analyst expectations.

Key Highlights from the Earnings Release

Beyond the headline numbers, the press release outlined several strategic developments:

• Profitability Strength: Gross margin expanded to 35.7% from 34.0% in the prior-year quarter, driving the bottom-line outperformance.
• Digital Growth: eCommerce sales surged 22.2%, indicating strong traction in the company's online channel.
• Store Expansion: The company opened 11 new stores during the quarter, bringing its total footprint to 317 locations across 21 states. New stores are reportedly "comping high single digits."
• Capital Allocation: Share repurchase activity slowed significantly year-to-date ($99.9 million vs. $276.6 million), while dividend payments increased by 9.2%.

Looking Ahead

For the upcoming fourth quarter, analysts are currently estimating sales of approximately $1.78 billion. Academy's full-year sales guidance implies a Q4 expectation that is broadly in line with, or slightly below, these projections. The company's ability to maintain its margin discipline and cost controls appears to be the central factor supporting its earnings potential in the near term.

For a detailed breakdown of historical earnings, future estimates, and analyst projections, you can view the earnings data for ASO here.

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