How Strong Relationships With Nike and Adidas Helped Academy Sports Achieve Record Sales in Q3

Academy Sports and Outdoors just posted record third quarter results. This success was fueled by strong relationships with key vendors such as Nike, Adidas, Under Armour, The North Face and Colombia. Academy posted a net sales increase of 18.1% to $1.59 billion, a third quarter record. Comparable sales grew for the 9th consecutive quarter and merchandise inventories were up 22.4% year over year to $1.3 billion. As a result of the strong numbers, Academy raised its full year sales and earnings guidance. Shares of Academy were up at least 7% by early afternoon on Friday. Despite supply chain slowdowns and record-high inflation, the company managed to achieve its strongest inventory position in two years. In explaining the success, executives pointed to the company’s “status as a preferred vendor partner” and its “extensive vendor base,” said Academy CFO Michael Mullican in a call with investors. In a year where leading brands such as Nike, Adidas, and Under Armour ended certain retail partnerships in favor of focusing on DTC channels, retailers that remain important channels for these brands are seeing major wins. For example, Dick’s Sporting Goods, FN’s 2021 retailer of the year, has maintained a strong connection with Nike via a beneficial supplier relationship and

Follow Footwear News on Twitter or become a fan on Facebook.

from Footwear NewsFootwear News https://ift.tt/3lTHtGw