Academy Sports + Outdoors (NASDAQ:ASO) reported a solid conclusion to fiscal 2025, with full-year net sales climbing 2% to reach a milestone of $6.05 billion.
The fourth quarter provided a strong tailwind for the Texas-based retailer, generating $1.72 billion in sales, a 2.5% increase over the prior year.
This growth was supported by steady demand in core categories like outdoor recreation and athletic apparel, as the company continued to gain market share from both specialty retailers and big-box competitors.
The company’s profitability remained robust despite a promotional retail environment.
For the full year, Academy reported GAAP diluted earnings per share (EPS) of $5.54, with the fourth quarter contributing $1.98 per share.
In a move that highlights its strong cash flow generation and commitment to shareholder returns, the Board of Directors approved a roughly 15% increase in the quarterly dividend to $0.15 per share.
Furthermore, Academy remains active in its capital return strategy, noting that approximately $437 million remains under its current share repurchase authorization.
Looking ahead to fiscal 2026, Academy is shifting into a higher gear for physical expansion.
The company plans to open between 20 and 25 new stores, a significant acceleration of its "long-range plan" to broaden its footprint beyond its traditional Southeastern and Midwestern strongholds.
This expansion is backed by a capital expenditure budget of $200 million to $240 million, aimed at modernizing its supply chain and enhancing the in-store "discovery" experience that differentiates the brand from purely e-commerce players.
Financial guidance for fiscal 2026 suggests continued momentum, with Academy forecasting sales growth between 2% and 5% and GAAP EPS in the range of $5.65 to $6.15.