Academy Sports Opens 24 Stores in Small Markets as Dick's Avoids Competition

Academy Sports Opens 24 Stores in Small Markets as Dick’s Avoids Competition

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4.28.2026

Quick Facts

Academy opened 24 new stores by end of fiscal 2025, creating over 1,400 jobs and $120,000 in community donations
Company plans 125 new stores over five years, targeting $8 billion revenue growth from current $6.05 billion
New stores in markets like Searcy, Arizona and Palestine, Texas sit 20-50 miles from nearest Dick’s location

Academy Sports & Outdoors is betting on small-town America while other retailers chase major metropolitan areas.

The sporting goods chain opened 24 new stores by the end of fiscal 2025 and plans to add 125 more over the next five years. The strategy targets markets too small for competitors like Dick’s Sporting Goods but underserved by general retailers like Walmart.

“We think by having this outside-in strategy, we’re going to be able to build brand awareness in these new markets and then push our way into the outer suburbs over time,” CEO Steve Lawrence said.

Academy’s expansion focuses on towns where the population cannot support specialized sporting goods or outdoor-only stores. The company combines both categories under one roof, filling a market gap.

“The population is not big enough to support a full-line just sporting goods-only store or a full-line only outdoor store,” Lawrence said. “The fact that we have both sides of the box and carry other things like outdoor puts us in kind of a unique position.”

The retailer will open 40% of new stores in legacy markets, 40% in states where it has operated for at least five years, and 20% in completely new markets. Examples include locations in Searcy, Arizona; Zanesville, Ohio; and Palestine, Texas.

New stores generate $12 million to $16 million in first-year sales and achieve positive four-wall EBITDA with returns on invested capital exceeding 20% over their lifecycle. The 24 recent openings created more than 1,400 jobs.

Academy’s approach mirrors Hibbett’s early strategy of being the only sneaker store in small markets, according to Matt Powell, senior adviser with BCE Consulting. “Smaller markets are many and most are underserved,” Powell said.

The company reported $6.05 billion in trailing twelve-month revenue, up from $5.93 billion in 2024. Fourth quarter comparable sales declined 3.0%, representing a 190 basis point improvement from the third quarter.

Academy targets higher-income customers seeking value in sports and outdoor products. CFO Carl Ford noted acceleration in transactions from households earning over $100,000, with higher average baskets among these customers.

The retailer plans to open 20 to 25 new stores in 2025, expanding to 21 states and reaching over 300 total locations. The five-year plan aims to grow revenue from $6.1 billion to $8 billion.