Maddie Chacon for Robbie Ohmes

Maddie Chacon, on behalf of Robbie Ohmes, asked how Black Friday promotions compared to last year and the risk of needing to be more promotional later in the quarter, especially considering Foot Locker's stance on aggressive clearance. She also inquired about where Academy is raising prices within its assortment versus where unit degradation might be observed.

Answer

CEO Steve Lawrence stated that Black Friday promotions were roughly in line with last year, noting that the wildcard for the holiday season is the customer's take rate on promotions, as more customers are taking advantage of them. He dismissed concerns about Foot Locker's promotions, citing minimal overlap in assortment and customer base (mall-based vs. off-mall). Regarding pricing, Steve explained that prices have generally increased across the board, more pronounced in hard goods. He outlined a multi-tactic approach to raising average unit retails (AURs), starting with better clearance management, then refining promotions (shortening length, narrowing scope, reducing depth), and finally, physically raising ticket prices in response to national brand MSRP increases and private brand alignment. He noted that unit degradation varies by category, with some being inelastic and others highly elastic.