Academy Sports announces tariff mitigation actions

The company said, “The Company has worked diligently over the past several years to reduce exposure to China and to diversify its supply chain by entering into arrangements with trusted suppliers in other countries. The Company has reduced its cost exposure to approximately 9% of total cost of goods sold directly related to China for its private label business and plans to further reduce this cost exposure to around 6% by the end of fiscal 2025. The following actions have been taken to quickly limit exposure to all tariffs: Pulled forward domestic inventory receipts of evergreen product at pre-tariff prices Partnered with suppliers to decrease cost Reduced inventory receipts to maintain maximum flexibility to respond to evolving landscape Shifted product out of China to other countries Reduced fiscal 2025 projected capital expenditures Flexed expenses to better align with current composition of inventory With these actions, the Company believes it has effectively mitigated the cost of tariffs at current levels, while minimizing the impacts to customers. Moving forward, the team will remain nimble and make adjustments, if or when the situation changes. The Company also plans to leverage its private brand portfolio, which represents approximately 23% of merchandise sales, to offer differentiated, high-margin value options to the customer. As a value retailer, Academy’s owned brands like BCG, Magellan Outdoors, R.O.W., and Freely help to deliver compelling value while protecting margin integrity.”