Academy Sports and Outdoors, Inc. (ASO): Business Model Canvas [Dec-2025 Updated]

You're trying to figure out the real strategy behind Academy Sports and Outdoors, Inc. as they navigate a tricky consumer market, and honestly, their fiscal 2025 plan is a masterclass in balancing physical and digital growth. They are aggressively pushing physical footprints, planning 20-25 new store openings this year, all while their e-commerce channel is gaining serious traction, hitting 17.7% growth in Q2 2025. This push supports their net sales guidance range of $5.97 billion to $6.27 billion for the full year, driven by key moves like launching the Jordan Brand in over 145 locations. Let's break down the nine blocks of their business model to see exactly how they plan to execute this expansion.

Academy Sports and Outdoors, Inc. (ASO) - Canvas Business Model: Key Partnerships

You're looking at the engine room of Academy Sports and Outdoors, Inc.'s strategy-the alliances that make the whole operation run smoothly. These aren't just vendor agreements; they are strategic moves to lock in top-tier product access and optimize the customer experience right up to the front door.

The rollout of the Jordan Brand was definitely a landmark event for Academy Sports and Outdoors, Inc. This wasn't a soft test; it was the largest brand rollout in Company history, hitting $\mathbf{145}$ stores and the online platform simultaneously. Honestly, the expectation was that this partnership would be so strong it would push Jordan Brand into the top $\mathbf{20}$ brands by sales for fiscal $\mathbf{2025}$.

Also crucial for the apparel side is the licensed sports merchandise agreement with Fanatics. This partnership lets Academy Sports and Outdoors tap directly into Fanatics' extensive inventory, giving you a much broader selection of team gear, jerseys, and fan apparel online and in the stores. It's about making sure you have the right licensed product when a fan needs it.

To make sure that gear gets to you fast, Academy Sports and Outdoors teamed up with DoorDash for last-mile delivery. This service is now available from $\mathbf{285}$ locations across $\mathbf{19}$ states, aiming for delivery in under an hour on average. That's a concrete step toward speed for the omnichannel customer.

Here's a quick look at the scale of these key operational partnerships as of late $\mathbf{2025}$:

When we look at manufacturing suppliers, the focus shifts to margin protection through private label brands like Magellan Outdoors. These owned brands, which also include BCG, R.O.W., and Freely, represented approximately $\mathbf{23\%}$ of merchandise sales in $\mathbf{2024}$. To secure those high margins against external pressures, Academy Sports and Outdoors worked to reduce its cost exposure related to China for its private label business to around $\mathbf{6\%}$ by the end of fiscal $\mathbf{2025}$, down from about $\mathbf{9\%}$ earlier in the year.

Finally, the commitment to community is cemented through several national partnerships. You see Academy Sports and Outdoors working with organizations that directly impact the customer base:

• National partnership with Boys & Girls Clubs of America.
• National partnership with Babe Ruth League.
• National partnership with Operation Homefront.

The financial impact of this community focus is measurable, too; the company donated over $\mathbf{\$2.2}$ million to St. Jude Children's Research Hospital between $\mathbf{2021}$ and $\mathbf{2025}$.

Academy Sports and Outdoors, Inc. (ASO) - Canvas Business Model: Key Activities

You're looking at the core engine driving Academy Sports and Outdoors, Inc.'s growth right now, which is heavily weighted toward physical expansion and digital integration. Honestly, the focus is on getting more doors open while making sure the ones they have, and the ones online, work harder.

Aggressive new store expansion, planning 20-25 openings in fiscal 2025.

The pace of opening new locations is a primary activity. Academy Sports and Outdoors, Inc. is executing on a plan to open 20 to 25 new stores in fiscal 2025. This follows the opening of 16 new locations in fiscal 2024. By March 2025, the company surpassed the 300 stores milestone, expanding its footprint to 21 states. The long-term view is even more ambitious, targeting 160 to 180 new stores over the next five years, aiming for a national presence of over 800 stores. Each new store build is estimated to require capital investment between $4 million to $5 million. Capital expenditures for fiscal 2025 are projected to be between $220 million and $250 million, heavily weighted toward this store growth, technology upgrades, and existing store updates.

Here's a quick look at the store opening progress through the first three quarters of fiscal 2025:

The new stores are performing well; those opened in Q2 2025 were comping positive mid-single digits. For context, in fiscal 2023, sales per store reached $22 million, which was 47% higher than competitor Dick's Sporting Goods' $15 million per store.

Managing a complex, diversified global supply chain and logistics network.

A key operational activity involves actively managing the supply chain to mitigate external pressures, specifically tariffs. Academy Sports and Outdoors, Inc. has been diligently working to diversify its sourcing away from China. The company has reduced its direct cost exposure related to China for its private label business to approximately 9% of total cost of goods sold and has a stated plan to further reduce this to around 6% by the end of fiscal 2025.

Developing and marketing high-margin private label brands (e.g., Freely, H2OX).

Leveraging owned brands is critical for margin integrity. As of Q1 2025, the private brand portfolio represented approximately 23% of merchandise sales. This focus is intended to offer differentiated, high-margin value options to the customer.

• Brands include BCG, Magellan Outdoors, R.O.W., and Freely.
• The company introduced the Jordan Brand from Nike starting in April 2025, marking their largest brand launch in history.

Enhancing omnichannel capabilities and e-commerce platform (Academy.com).

Digital engagement is a major focus area. E-commerce sales showed strong growth in the first half of 2025, surging 17.7% in the second quarter ended August 2, 2025. In the first quarter of fiscal 2025, the e-commerce channel saw a 10% sales increase, growing its penetration to over 10% of total sales. However, the most recent snapshot from Q3 '25 indicated e-commerce sales were at 8.8% of total sales.

• Approximately 50% of all online orders are fulfilled through Buy Online, Pick Up In Store (BOPIS).
• Operating expenses increased by 5.6% in Q3 2025, partly due to investments in e-commerce related expenses.

Executing localized merchandising strategies per store location.

The strategy emphasizes a localized assortment to resonate with customers in specific markets. New stores opened during Q1 2025 averaged $13 million in net sales per store, including e-commerce. The company is focused on remaining the value player in its space to take market share.

Academy Sports and Outdoors, Inc. (ASO) - Canvas Business Model: Key Resources

You're looking at the hard assets Academy Sports and Outdoors, Inc. (ASO) relies on to execute its strategy as of late 2025. These aren't abstract concepts; they are concrete things that drive revenue and market position.

The physical footprint remains a massive tangible resource. As of the second quarter of fiscal 2025, Academy Sports and Outdoors, Inc. operated 306 stores across 21 states. This extensive network is crucial for their localized merchandising approach. They are still executing on their plan to open between 20 to 25 new stores in the full fiscal year 2025.

The company's owned Private Label Brands are a key differentiator, helping to protect margin integrity while offering value. These brands include Magellan Outdoors, R.O.W., BCG, Freely, H2OX, Redfield, and Mosaic. As of the first quarter of fiscal 2025, this portfolio represented approximately 23% of merchandise sales.

Financially, the balance sheet provides a solid foundation. Total assets stood at $5.18 billion as of May 3, 2025. [cite: The prompt provided this number]. For a more recent snapshot, total assets were reported at $5,275,983 thousand as of August 2, 2025. This scale allows for significant inventory investment, with inventory per store up 8.2% in dollars as of August 2, 2025.

Logistics are anchored by a centralized infrastructure. Academy Sports and Outdoors, Inc. utilizes three primary distribution centers to manage inventory flow to its stores. These are located in Katy, TX, Jeffersonville, GA, and Cookeville, TN.

Proprietary customer data feeds directly into the myAcademy loyalty program, a vital tool for driving repeat business and targeted marketing. The program offers tangible benefits to members, which include:

• A 10% welcome offer.
• Free shipping minimum lowered to $25.
• Insider access to personalized offers.
• An annual birthday reward.

Here's a quick look at some of the key physical and financial resource metrics as of mid-2025:

The portfolio of owned brands is supported by specific product lines:

• Magellan Outdoors
• R.O.W. (Right of Way)
• BCG
• Freely
• H2OX
• Redfield
• Mosaic

The company also continues to invest in technology, such as its pricing optimization tool, which helps manage costs, especially against tariff impacts. Finance: finalize the Q3 2025 asset reconciliation against the May 3rd figure by next Tuesday.

Academy Sports and Outdoors, Inc. (ASO) - Canvas Business Model: Value Propositions

Academy Sports and Outdoors, Inc. focuses its value proposition on delivering compelling value to the cost-conscious consumer through disciplined pricing and a wide, relevant assortment.

Everyday Value: Pricing goods to be competitive, often $5 below MSRP

Academy Sports and Outdoors, Inc. maintains a pricing strategy that undercuts the Manufacturer's Suggested Retail Price (MSRP) by an average of $5. This commitment to value is something the Chief Financial Officer has stated, confirming that Academy Sports and Outdoors, Inc. will price goods at least $5 below the MSRP.

Broad, diversified product assortment across four key categories: Outdoor, Apparel, Footwear, Sports & Recreation

The product assortment is diversified across four primary categories, as reflected in the fiscal year 2024 net sales breakdown:

Exclusive access to high-quality, lower-cost Private Label Brands

The portfolio of owned brands, such as BCG, Magellan Outdoors, R.O.W., and Freely, is leveraged to offer differentiated, high-margin value options. Private brands accounted for 23% of merchandise sales as of the first quarter of fiscal 2025. This represents an increase from the 22% share recorded in fiscal 2023.

Convenience of omnichannel shopping: in-store services plus e-commerce and app

The company is focused on improving the omnichannel experience, with eCommerce Sales surging 17.7% in the second quarter of fiscal 2025. As of the second quarter of fiscal 2025, Academy Sports and Outdoors, Inc. operated 306 locations across 21 states. Buy-online, pick-up in-store (BOPIS) and ship-from-store sales represented more than 80% of Academy Sports and Outdoors, Inc.'s e-commerce sales in Q2 2024, highlighting the integration of digital and physical channels.

Free in-store services like grill assembly and line winding/spooling

Academy Sports and Outdoors, Inc. provides free in-store services, such as grill assembly and line winding/spooling, to enhance the customer experience at its 306 stores.

Academy Sports and Outdoors, Inc. (ASO) - Canvas Business Model: Customer Relationships

Academy Sports and Outdoors, Inc. focuses its customer relationships on data capture, transactional value, and localized service expertise.

The myAcademy rewards program is central to capturing first-party data to drive repeat business. The company reported adding over 12 million customers to the program in its first year. For fiscal year 2025, Academy Sports and Outdoors, Inc. has plans to add another 2 million customers to the myAcademy rewards program, targeting a total membership base exceeding 13 million by year-end.

The tangible benefits members receive directly shape this relationship:

• Welcome offer of 10% off the next purchase, up to $200.
• Annual birthday reward of $10 off $50 purchase.
• Free shipping minimum lowered to $25.
• Insider access to personalized offers and deals.

Automated digital marketing is heavily integrated with the mobile app experience, supporting the transactional relationship. This digital focus is showing results, as e-commerce sales surged by 17.7% to 18% year-over-year in the second quarter of fiscal year 2025. The dot-com business penetration increased by 120 basis points in Q2 2025, building on a 10% increase in the first quarter.

The transactional relationship is anchored in delivering value and convenience across the omnichannel network. Academy Sports and Outdoors, Inc. maintains a price-beat guarantee, promising to beat competitor prices by 5%, with an additional 5% discount for Academy Credit Card holders. This value focus supports the gross margin guidance for Fiscal Year 2025, which is expected to remain between 34.0% and 34.5%. Private label brands, which offer value control, represented approximately 20% of sales in fiscal year 2024.

Here is a summary of key customer engagement and digital performance metrics as of late 2025:

Dedicated in-store staff provide specialized product knowledge, supporting categories like hunting and fishing, which accounted for 30% of net sales in fiscal year 2024. The physical footprint expansion is a key relationship driver, with the company planning 20 to 25 new store openings in fiscal 2025. The recent expansion, including 24 new locations launched in fiscal 2025, created more than 1,400 jobs. In-store services reinforce the specialized relationship, including offerings like scope mounting.

Academy Sports and Outdoors, Inc. (ASO) - Canvas Business Model: Channels

You're looking at how Academy Sports and Outdoors, Inc. gets its products into customers' hands as of late 2025. It's a clear mix of brick-and-mortar presence and digital acceleration.

Physical Retail Stores

The foundation remains the physical store footprint. As of the second quarter of fiscal 2025, Academy Sports and Outdoors, Inc. operated a total of 306 locations across 21 states. This physical network is the primary channel for immediate purchase and experience. The expansion strategy is active; during Q2 2025, the company opened three new stores in Florida, Virginia, and West Virginia. Management maintained the plan to open a total of 20 to 25 new stores for the full fiscal year 2025. The company surpassed the 300-store mark in Q1 2025.

E-commerce Platform

Academy.com is a major growth driver. In the second quarter of fiscal 2025, the company reported that its eCommerce sales surged by 17.7%. Some internal commentary noted this channel achieved a positive comparable sales increase of approximately 18% for the same period. This digital growth is building on prior momentum, as e-commerce penetration reached over 10% of total sales in Q1 2025, following a 10% sales increase in that quarter. The company's strategy is clearly focused on leveraging this digital channel alongside its physical assets.

Here is a quick look at the channel performance metrics as reported for Q2 2025:

Academy Mobile App and Fulfillment Options

The Academy Mobile App is positioned to streamline the customer journey, focusing on elements like faster checkout processes and delivering personalized offers directly to the user. While specific usage statistics for the app aren't detailed in the latest reports, its function supports the broader omnichannel push.

The company heavily relies on integrated fulfillment to connect its physical and digital presence. The omnichannel strategy, which includes both Buy Online, Pick Up In Store (BOPIS) and shipping fulfillment capabilities, facilitated approximately 95% of total sales, according to the March 2025 10-K filing, reflecting performance from the prior period. This high percentage underscores how critical these fulfillment options are to the overall sales execution.

You can see the key channel components here:

• Physical Retail Stores: 306 locations as of Q2 2025.
• E-commerce Growth: 17.7% surge in Q2 2025.
• Fulfillment Integration: Omnichannel options facilitated approximately 95% of total sales (prior period data).
• Expansion Target: Planning 20 to 25 new store openings in fiscal 2025.

Academy Sports and Outdoors, Inc. (ASO) - Canvas Business Model: Customer Segments

Value-conscious, active families and young enthusiasts in the Southern US represent a core base for Academy Sports and Outdoors, Inc. As of the second quarter ended August 2, 2025, the Company operated 306 stores across 21 states, with a strong historical concentration in the southern United States, including Texas, Georgia, and Florida.

Outdoor enthusiasts seeking specialized gear are served by the Outdoor category, which was the top performer in Q3 2025, showing 7% net sales growth year-over-year, representing 32% of total sales in that quarter. This focus on outdoor goods is reflected in the fiscal year 2024 product assortment breakdown, where Outdoor accounted for 30% of net sales.

Athletes and casual users seeking general sports and recreation apparel/footwear are targeted through the Apparel and Footwear categories. For fiscal year 2024, Apparel represented 27% of net sales, and Footwear represented 20% of net sales. The Sports & Recreation category made up 23% of net sales in fiscal year 2024.

Higher-income consumers, noted as a growing traffic segment in 2025, are engaged through premium brand offerings. The launch of the Jordan Brand in 145 stores and online in Q1 2025 was the company's largest brand launch to date. The average ticket size saw a 1.2% increase in fiscal year 2024, even as comparable transactions decreased by 6.3%.

The following table summarizes key metrics relevant to these customer segments:

Academy Sports and Outdoors, Inc. is also focusing on value for specific cohorts:

• Responding to weakness in low-to-middle income cohorts.
• Private brands accounted for 23% of total sales in 2024, up from 22% in 2023.
• E-commerce sales increased by 10% year-over-year in Q1 Fiscal 2025.
• E-commerce sales increased by 17.7% in Q2 Fiscal 2025.

The Company plans to open 20 to 25 new stores in fiscal year 2025.

Academy Sports and Outdoors, Inc. (ASO) - Canvas Business Model: Cost Structure

You're looking at the core expenses driving Academy Sports and Outdoors, Inc.'s operations as of late 2025. The cost structure is heavily weighted toward inventory acquisition, but significant ongoing investment in physical footprint and digital capabilities is also clear.

High Cost of Goods Sold (COGS) and Gross Margin

The single largest cost component is the Cost of Goods Sold (COGS). Academy Sports and Outdoors, Inc. has managed to maintain a relatively stable, though pressured, gross margin rate. For the first quarter of fiscal 2025, the Gross Margin rate was reported at 34.0%, which was an improvement of 60 basis points year-over-year, showing pricing discipline held up. For the full fiscal year 2025, the company guided the Gross Margin Rate to be between 34.0% and 34.5%.

Here's a quick look at how key cost-related metrics stacked up in recent periods:

Significant Capital Expenditures for New Store Openings

A major driver of cash outflow is the continued investment in physical expansion. Academy Sports and Outdoors, Inc. maintained an aggressive store opening schedule, planning for 20 to 25 new stores in fiscal year 2025. This physical expansion requires substantial upfront capital.

The company's capital expenditure guidance for the full fiscal year 2025 reflected this growth focus, set in the range of $180 million to $220 million. Year-to-date capital expenditures through the second quarter were reported at $107,576 thousand. Each new Academy Sports and Outdoors, Inc. store is estimated to require $4 million to $5 million in capital to open.

Operating Expenses: Payroll, Rent, and Technology

Operating expenses are dominated by the costs associated with running the physical store base, namely payroll and occupancy costs like rent and utilities. Selling, General, and Administrative (SG&A) expenses saw pressure in early 2025 due to strategic spending.

In the first quarter of fiscal 2025, SG&A expenses as a rate of sales rose to 28.8% of sales, an increase of 290 basis points. This increase was directly tied to specific investments:

• Investments in new store growth accounted for 150 bps of the increase.
• Support for the Jordan Brand launch and Nike assortment expansion represented over $7 million investment (or 60 bps).
• Technology investments in digital and supply chain contributed 20 bps.

By the second quarter, the SG&A rate for the 13-week period was 25.3% of sales, up from 23.8% year-over-year, totaling $404,352 thousand.

Logistics, Supply Chain, and Tariff Mitigation

Supply chain costs are a persistent focus, especially given the need to manage inbound product costs. The transition to a new warehouse management system in 2025 reportedly increased supply chain costs by 20 points as a percentage of sales. Furthermore, managing international trade costs, specifically tariffs, required active management.

Academy Sports and Outdoors, Inc. implemented specific actions to limit tariff exposure:

• Pulled forward domestic inventory receipts at pre-tariff prices.
• Partnered with suppliers to decrease costs.
• Shifted product sourcing out of China to other countries.

The company worked to reduce its cost exposure related to China for its private label business to approximately 9% of total cost of goods sold, with a goal to lower this to around 6% by the end of fiscal 2025.

Marketing and Technology Investments

Costs are also allocated to bolster the digital channel and support major brand partnerships. The e-commerce channel showed strength, with sales increasing by 10% in Q1 2025, growing its penetration to 10.9% of merchandise sales by Q2 2025. These digital efforts require ongoing technology investment, which was cited as a driver of SG&A pressure in Q1.

The investment in marketing, specifically for the launch of the Jordan Brand, was a notable, discrete cost item in the first half of the year.

Academy Sports and Outdoors, Inc. (ASO) - Canvas Business Model: Revenue Streams

You're looking at how Academy Sports and Outdoors, Inc. actually brings in the money, which is essential for any valuation work. The revenue streams are pretty straightforward, centered on merchandise sales, but the digital piece is gaining traction, and there are a few smaller, steady contributors.

Retail Sales: Primary Stream

The bulk of the revenue comes from customers walking into one of the 303 stores across 21 states and buying gear. This is the core engine. For context on the scale, Q1 fiscal 2025 net sales landed at $1.35 billion. By the second quarter of fiscal 2025, that number improved to approximately $1.6 billion, showing a 3.3% year-over-year increase for that period. This in-store activity remains the foundation of the business.

E-commerce Sales: Growing Stream

The digital channel is definitely growing faster than the overall business. In the first quarter of fiscal 2025, e-commerce sales showed a strong increase of 10.2%. This digital momentum continued into Q2 fiscal 2025, where e-commerce sales increased by 17.7% or 18%, depending on the report. Online penetration is now over 10% of total sales as of Q1 2025.

Here's a quick look at the recent top-line performance to anchor these streams:

Full-Year Net Sales Guidance

Management is balancing optimism from strategic wins against macro uncertainty. For the full fiscal year 2025, Academy Sports and Outdoors, Inc. has set its net sales guidance in a range of $5.97 billion to $6.27 billion. This guidance was revised in Q1 to account for potential downside from inflation and tariff scenarios.

Credit Card Revenue and Ancillary Services

These are smaller, but important, supplementary revenue sources that flow into the 'Other sales' line item. You won't see them broken out separately in the main sales figures, but they are part of the model. The components identified include:

• Credit card bounties and royalties.
• Net hunting and fishing license income.
• Revenue from gift card breakage income.

The financial filings group these items, along with shipping income and sales return allowance, into one category, so specific dollar amounts for just the credit card interest/fees or license sales aren't explicitly detailed in the top-line guidance or quarterly summaries found.