What Academy Sports & Outdoors, Inc. told the SEC could break it.

Although Academy buys from approximately 1,500 vendors, its largest vendor represented roughly 12% of total inventory purchases in 2025. It generally does not have long-term written contracts requiring suppliers to continue supplying it, and sourcing qualified suppliers and accessing merchandise on time is challenging — particularly for goods sourced outside the U.S. Loss or reduced cooperation from its largest vendor (or several key vendors) could disrupt assortment and inventory availability.

“In 2025, purchases from our largest vendor represented approximately 12% of our total inventory purchases.”

A significant portion of Academy's merchandise — including goods bought from domestic suppliers and much of its private-label brands (~22% of merchandise sales) — is manufactured in China, Bangladesh, Vietnam, Cambodia and Brazil, exposing it to tariffs, duties, quotas, loss of MFN status, port/ocean-carrier constraints and labor disruptions. The tariff impact is realized: Academy managed prices in response to increased tariff costs in 2025 (a driver of merchandise-margin favorability) and even sold a portion of its rights to potential tariff-relief litigation claims, not expecting material tariff refunds. Further tariff/trade actions could raise costs and pressure margins.

“A significant portion of the merchandise that we sell, including merchandise we purchase from domestic suppliers and much of our private label brand merchandise, is manufactured in countries such as China, Bangladesh, Vietnam, Cambodia, and Brazil.”