Academy Sports and Outdoors, Inc. (NASDAQ:ASO) reported first-quarter results on Tuesday.

The company reported quarterly adjusted earnings per share of 76 cents, missing the analyst consensus estimate of 90 cents. Net sales of $1.35 billion missed the Street view of $1.37 billion.

First-quarter sales for the company experienced a slight decline of 0.9%, with comparable sales falling by 3.7%.

Also Read: Academy Sports’ Growth Potential Uncertain Amid Macroeconomic Challenges: Analyst Explains Why

Despite this overall downturn, the company’s eCommerce sales showed a positive trend, increasing by 10.2%.

Additionally, new store locations are performing well, contributing low single-digit positive comparable sales.

Quarterly adjusted EBITDA lowered to $109.764 million, compared with $142.578 million a year ago.

The company expanded its retail presence by opening five new stores in Pennsylvania, Maryland, Missouri, and North Carolina. Academy Sports now has 303 locations, and it plans to open 20 to 25 stores in fiscal 2025. The Jordan Brand was launched in stores during the quarter.

Academy Sports said it has actively worked to lessen its reliance on China and diversify its supply chain over the past several years.

By partnering with trusted suppliers in other countries, the company said that it has reduced its direct cost exposure to China for private label goods to about 9% of total cost of goods sold.

The company aims to further lower this exposure to approximately 6% by the close of fiscal year 2025.

“We are widening our annual comp sales guidance range to -4% to +1% to account for a potential downside that may be created by inflationary pressures the remainder of the year,” said CEO Steve Lawrence.

The company said it also plans to leverage its private brand portfolio, which represents approximately 23% of merchandise sales, to offer customers differentiated, high-margin value options.

Academy Sports exited the quarter with cash and equivalents worth $285.1 million. The Board of Directors declared a quarterly cash dividend of 13 cents per share, which is payable on July 17, 2025.

A total of $108 million was returned to shareholders, comprising $99.9 million in share repurchases and $8.7 million in paid dividends.

The company adjusted its full-year guidance, widening the range to account for potential economic uncertainties and tariff impacts.

Academy Sports has revised its fiscal year 2025 adjusted earnings per share guidance to a range of $5.45-$6.25, previously $5.75-$6.20, while the analyst consensus is $5.96.

Concurrently, the company also revised its FY2025 sales outlook to $5.97 billion-$6.26 billion, from $6.09 billion-$6.26 billion, against an estimated $6.14 billion.