Nike And Jordan Power Academy Sports' Store Upgrade

Academy Sports and Outdoors, Inc. (NASDAQ:ASO) is strengthening its merchandising, RFID technology and operational capabilities to drive more consistent performance amid choppy sales trends.

Reflecting a positive outlook for the company’s trajectory, Telsey Advisory Group analyst Cristina Fernández reiterated the Outperform rating on Academy Sports and Outdoors, raising the price forecast from $58 to $65.

Fernández highlighted Academy is exploring improvements in supply chain, e‑commerce, marketing, loyalty and customer data management.

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She also noted that key hires, Chad Fox, as Chief Commercial Officer in January 2024 and Sumit Anand, as Chief Information Officer in March 2025, are advancing infrastructure and online capabilities. In supply chain, new warehouse and inventory systems aim to boost truckload efficiency over time.

She added that loyalty program enrollment is still low but could enable personalized marketing as it grows. For summer, Academy launched its “Fun Can’t Lose” marketing campaign featuring young families, wider social media reach and new Nike products.

In addition, Fernández observed that during the July 22 store tours in Houston, Academy Sports & Outdoors, guided by VP of Investor Relations Dan Aldridge and District Manager Mary Galyen, has enhanced its merchandise assortment and in‑store experience.

Academy has significantly upgraded its merchandise assortment and overall store experience. This improvement is largely attributed to two key initiatives: an expanded Nike product offering and the successful launch of the Jordan brand in 145 stores, which represents approximately 50% of Academy’s total locations. These enhancements appear to be resonating positively with customers.

She noted that the June 1 deployment of RFID scanners has helped associates locate inventory more efficiently and improved conversion and sales.

Fernández added that further gains in supply chain, e‑commerce, loyalty penetration, customer data utilization, and marketing remain important levers for driving stronger, more consistent results.

Fernández forecasts 2025 EPS of $5.85, just above the $5.83 FactSet consensus. She projects comps will decline 2.0%, compared to FactSet’s –1.5% and guidance of –4% to +1%.

Academy’s latest results, coupled with their commentary on the second-quarter 2025 sales trends and full-year 2025 guidance, present a mixed picture amid inconsistent consumer spending.

On the bright side, the expanded Nike product range and the successful Jordan brand launch have surpassed initial expectations. Furthermore, Academy has a clear strategy in place to counteract the effects of tariffs.

While the exact timing of a positive comparable store sales turnaround remains unclear, the analyst notes significant improvements in Academy’s merchandise offerings.

The analyst also commended the company for its effective management of inventory, promotions, and tariffs. These factors, combined with low market expectations and an appealing valuation, lead the analyst to maintain a positive outlook on Academy’s stock.

Price Action: ASO shares are trading lower by 2.77% to $55.27 at last check Thursday.

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