You've come to the right place to understand the financial performance of Academy Sports + Outdoors! Many people are curious about how large retailers generate their income. It's not always as straightforward as just looking at sales figures, as there are many factors that influence a company's overall financial health.
Let's dive into how much money Academy Sports + Outdoors makes and the various elements that contribute to their financial picture.
Step 1: Understanding the Basics – Revenue vs. Profit
Before we look at the numbers, let's clarify two fundamental financial terms: revenue and net income (profit).
Revenue: This is the total amount of money a company brings in from its sales of goods and services over a specific period. Think of it as the "top line" number. For Academy Sports + Outdoors, this would be all the money they collect from selling everything from athletic apparel and footwear to camping gear and fishing equipment.
Net Income (Profit): This is the money a company has left over after all expenses, including the cost of goods sold, operating expenses (like salaries and rent), interest, and taxes, have been deducted from its revenue. This is the "bottom line" and represents the company's true earnings.
It's crucial to understand the difference because a company can have high revenue but low or even negative net income if its expenses are too high.
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| How Much Money Does Academy Sports And Outdoors Make |
Step 2: Unpacking Academy Sports + Outdoors' Recent Financial Performance
Academy Sports + Outdoors (NASDAQ: ASO) is a publicly traded company, which means their financial information is publicly available through their reports to the Securities and Exchange Commission (SEC), like the Form 10-K for annual reports and Form 10-Q for quarterly reports. These are invaluable for understanding their financial standing.
Sub-heading: Fiscal Year 2024 (Ending February 1, 2025) Key Figures
Based on their latest financial reports, here's a snapshot of Academy Sports + Outdoors' performance for the fiscal year ending February 1, 2025:
Total Revenue (Net Sales): Academy Sports + Outdoors reported $5.93 billion in net sales for fiscal year 2024. This represents a decrease of approximately 3.7% from the previous fiscal year.
Net Income: For the same period, their net income was $418.45 million. This was a decrease of approximately 19.4% from the prior year, mainly due to lower operating income.
Gross Margin: The gross margin was $2.01 billion, representing 33.9% of net sales. This percentage was down slightly due to factors like increased supply chain costs and a higher sales mix of "hard goods" (which typically have lower margins than apparel).
Operating Income: The company's operating income stood at $538.64 million, a decrease of 20.5% from the previous year, impacted by increased selling, general, and administrative (SG&A) expenses and decreased sales.
Sub-heading: Latest Quarterly Performance (Q1 Fiscal Year 2025, Ending May 3, 2025)
Looking at their more recent performance, for the first quarter of fiscal year 2025 (ending May 3, 2025):
Total Revenue (Net Sales): Academy Sports + Outdoors reported $1.35 billion in revenue, a slight decrease of 0.9% compared to the same quarter last year.
Net Income: The net income for this quarter was $46.1 million, a notable decrease of 39.7% from the prior year's first quarter.
Earnings Per Share (Diluted GAAP EPS): This figure was $0.68.
These numbers indicate that while the company continues to generate substantial revenue, it has faced some headwinds in recent periods, leading to a decrease in net income.
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Step 3: Diving Deeper – Factors Affecting Their Earnings
Several factors influence how much money Academy Sports + Outdoors makes.
Sub-heading: Sales Mix and Product Categories ️
Academy's product assortment focuses on four key categories. In fiscal year 2024, their net sales were broken down approximately as follows:
Outdoor: Approximately 30% of net sales (includes hunting, fishing, camping). This category saw growth in Q4 fiscal year 2024.
Apparel: Approximately 27% of net sales.
Sports & Recreation: Approximately 23% of net sales.
Footwear: Approximately 20% of net sales.
Changes in consumer preferences and demand for specific categories can significantly impact their overall revenue and profitability. For example, if there's a surge in popularity for camping, their "Outdoor" category might see increased sales, potentially boosting overall revenue.
Sub-heading: Store Expansion and E-commerce Growth
Academy Sports + Outdoors has been actively pursuing a growth strategy through new store openings. In fiscal year 2024, they opened 16 new stores and plan to open 20 to 25 more in fiscal year 2025. New stores contribute to net sales, although it takes time for them to reach full profitability.
E-commerce sales are also a crucial part of their strategy. The company has seen consistent positive growth in online sales, with e-commerce accounting for a growing percentage of their total sales. This online presence helps them reach a wider customer base and adapt to evolving shopping habits.
Sub-heading: Economic and Consumer Risks
Like any retail business, Academy Sports + Outdoors is highly dependent on the U.S. economy and consumer discretionary spending. Factors such as:
Economic downturns
Inflationary pressures (which affect consumers' purchasing power)
Changes in consumer confidence
Increased credit card debt among their core customer base
can all adversely affect their sales and profitability. The company has acknowledged these challenges in their financial reports, noting that their core customers (active, young families earning $50,000 to $150,000) have been cautious with spending.
Sub-heading: Supply Chain and Inventory Management
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Managing their supply chain effectively is vital. A significant portion of their merchandise is manufactured in foreign countries, particularly China. This exposes them to:
Potential tariffs
Supply chain disruptions
Compliance with international labor and environmental standards
They are actively working to diversify their supply chain to reduce reliance on any single country. Efficient inventory management is also critical; they need to balance having enough stock to meet demand without overstocking, which can lead to markdowns and reduced profit margins.
Sub-heading: Competition and Brand Portfolio
The sporting goods and outdoor recreation market is competitive. Academy competes with other large retailers like Dick's Sporting Goods, as well as online-only retailers and specialized stores.
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To maintain competitiveness and enhance profitability, Academy focuses on:
Offering a localized merchandising strategy.
Providing a strong value proposition to a broad range of consumers.
Featuring both leading national brands and a growing portfolio of private label brands (like BCG, Magellan Outdoors, R.O.W., and Freely), which generally offer better profit margins.
Strategic partnerships, such as the introduction of the Jordan Brand from Nike in April 2025, aim to attract new customers and drive sales.
Step 4: Analyzing Profitability Metrics
Beyond just revenue and net income, other metrics provide a deeper understanding of a company's financial health.
Sub-heading: Gross Profit Margin and Operating Margin
Gross Profit Margin: As mentioned, for fiscal year 2024, Academy's gross margin was 33.9%. This tells us that for every dollar of sales, about 33.9 cents were left to cover operating expenses and profit after accounting for the cost of the goods sold.
Operating Margin: This ratio indicates how much profit a company makes from its operations before interest and taxes. For fiscal year 2024, Academy's operating margin was approximately 9.1%. This figure has seen some decline in recent years, reflecting increased operating expenses and reduced sales.
Sub-heading: Share Repurchase Programs and Dividends
Academy Sports + Outdoors also manages its capital by returning value to shareholders. In fiscal year 2024, they repurchased 6.5 million shares for $364.9 million and paid $31.5 million in dividends. These actions can impact their available cash but also signal financial stability and a commitment to shareholder returns.
Step 5: Looking Ahead – Outlook and Strategy
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Academy Sports + Outdoors continues to focus on strategic initiatives to drive growth and improve operational efficiencies. These include:
Further new store openings: Aiming for 20-25 new stores in fiscal year 2025.
Expanding loyalty programs: The "myAcademy" rewards program aims to increase customer engagement and traffic.
Enhancing e-commerce capabilities: Partnerships like same-day delivery with DoorDash are designed to attract younger, urban customers.
Strategic brand launches: Introducing popular brands like Jordan to their portfolio.
Supply chain diversification: Reducing exposure to tariffs and disruptions.
Despite recent decreases in net income, these strategies are intended to stabilize and ultimately grow the company's financial performance in the long term.
10 Related FAQ Questions
How to Calculate a Company's Revenue?
To calculate a company's revenue, you generally multiply the number of units sold by the average price per unit. For services, it's the number of services provided multiplied by the service fee. Public companies report their total revenue in their income statements.
How to Understand a Company's Profitability?
Understanding profitability involves looking at several metrics beyond just net income, such as gross profit margin (gross profit / revenue) and operating profit margin (operating income / revenue), which indicate how efficiently a company turns sales into profit before various expenses.
How to Find Academy Sports + Outdoors' Financial Reports?
You can find Academy Sports + Outdoors' financial reports (like 10-K and 10-Q) on the Investor Relations section of their official website or through the SEC's EDGAR database by searching for their ticker symbol, ASO.
How to Interpret a Decline in Net Income?
A decline in net income means the company's expenses grew faster than its revenue, or revenue declined more significantly than expenses. It could be due to increased operating costs, higher interest payments, tax changes, or decreased sales volume.
Tip: Remember, the small details add value.
How to Differentiate Between Sales and Earnings?
Sales (Revenue) refer to the total money brought in from selling goods/services, before any costs are subtracted. Earnings (Net Income/Profit) refer to the money left after all costs, including operational expenses, taxes, and interest, are paid.
How to Analyze a Retailer's Sales Mix?
To analyze a retailer's sales mix, you look at the percentage of total sales contributed by different product categories. This helps understand which categories are performing well and contributing most to the top line, and where there might be opportunities or challenges.
How to Determine if a Company's Growth Strategy is Effective?
An effective growth strategy is usually indicated by consistent increases in revenue, expanding market share, positive comparable store sales, and healthy returns on new investments (like new store openings or e-commerce initiatives).
How to Assess the Impact of Inflation on Retailers?
Inflation impacts retailers by increasing the cost of goods sold (making products more expensive to source) and potentially reducing consumer discretionary spending as customers have less money for non-essential items. This can squeeze profit margins and reduce sales volume.
How to Understand a Company's Debt Level?
A company's debt level can be understood by looking at its debt-to-equity ratio (total debt divided by shareholder equity) on the balance sheet. A higher ratio indicates more reliance on debt financing, which can be riskier.
How to Track a Company's Stock Performance?
You can track a company's stock performance by looking up its ticker symbol (e.g., ASO for Academy Sports + Outdoors) on financial news websites, stock market platforms, or brokerage apps. These platforms provide real-time prices, historical data, and related news.
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