Academy Sports & Outdoors, Inc.ASO

Academy Sports & Outdoors, Inc. Revenue Disclosure

10-KFiled Mar 20, 20252 min read
Net Sales
The following table sets forth the approximate amount of sales (all of which are based in the U.S.) by merchandise divisions for the periods presented (amounts in thousands):
Fiscal Year Ended
February 1, 2025February 3, 2024January 28, 2023
Merchandise division sales
     Outdoors$1,739,876 $1,727,018 $1,819,418 
     Sports and recreation1,357,811 1,452,377 1,488,187 
     Apparel1,611,435 1,710,838 1,758,993 
     Footwear1,187,605 1,235,643 1,291,227 
        Total merchandise sales (1)
5,896,727 6,125,876 6,357,825 
Other sales (2)
36,723 33,415 37,248 
Net sales$5,933,450 $6,159,291 $6,395,073 
(1)E-commerce sales consisted of 10.5%, 10.7% and 10.7% of merchandise sales for 2024, 2023 and 2022, respectively.
(2)Other sales consists primarily of the gift card breakage income, credit card bounties and royalties, shipping income, net hunting and fishing license income, sales return allowance and other items.
We sell gift cards in stores, online and in third-party retail locations. The gift cards we sell have no expiration dates. A liability for gift cards, which is recorded in accrued expenses and other liabilities on our Consolidated Balance Sheets, is established at the time of sale and revenues are recognized as the gift cards are redeemed in stores or on our website. Based on historical gift card redemption patterns, we believe we can reasonably estimate the amount of gift cards that have a remote likelihood of redemption. These identified amounts are recorded as net sales and recognized in proportion to historical redemption trends, which is referred to as “breakage”.
The following is a reconciliation of the gift card liability (amounts in thousands):
Fiscal Year Ended
February 1, 2025February 3, 2024January 28, 2023
Gift card liability, beginning balance$94,155 $90,650 $86,568 
Issued133,445 134,741 134,091 
Redeemed(122,784)(124,370)(124,463)
Recognized as breakage income(8,347)(6,866)(5,546)
Gift card liability, ending balance$96,469 $94,155 $90,650 

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

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