Greg Melich's questions to Academy Sports & Outdoors (ASO) leadership • Q2 2025
Question
Greg Melich questioned the gross margin drivers, specifically the impact of shrink and e-commerce shipping costs, and asked for an update on the company's sourcing diversification and COGS exposure following tariff mitigation efforts.
Answer
CEO Steve Lawrence detailed that a 40 bps merchandise margin gain was offset by a 20 bps headwind from shrink and 10 bps from e-commerce shipping. He noted that sourcing is now highly diversified to mitigate tariff risks, with private label COGS exposure at 6-7%, and expects AURs to accelerate into the high-single digits in the back half of the year.