Academy Sports and Outdoors Reports Q4 2024 Results: Comparable Sales Down 3.0%, EPS of $1.89, and Launch of Jordan Brand in 145 Stores

Academy Sports and Outdoors reported a 3.0% decline in comparable sales for Q4 2024, despite a positive EPS of $1.89.

Quiver AI Summary

Academy Sports and Outdoors, Inc. reported a 3.0% decline in comparable sales for the fourth quarter of fiscal 2024, though this represented a 190 basis point improvement over the previous quarter. The company posted a diluted GAAP earnings per share (EPS) of $1.89, which exceeded the midpoint of their updated guidance. In exciting news, Academy plans to launch the Jordan Brand in 145 stores and online starting in late April. Additionally, they announced an 18% increase in their quarterly dividend per share. Despite challenges in the macroeconomic environment, Academy’s CEO expressed optimism about future growth, emphasizing new brand offerings and advancements in marketing and technology. The company's financials for the fourth quarter included a net income of $133.6 million and net sales of approximately $1.68 billion. Furthermore, Academy opened five new stores during the quarter, contributing to plans for 20-25 new openings in 2025, as they work towards enhanced customer engagement and profitability.

Potential Positives

• Fourth Quarter Diluted GAAP EPS of $1.89 is above the midpoint of the updated guidance provided, signaling a strong performance relative to expectations.
• The company announced the launch of the Jordan Brand in 145 stores and online, indicating an expansion of its product offerings and potential to attract new customers.
• Quarterly dividend increased by 18% per share, demonstrating commitment to returning value to shareholders.
• Sequential improvements in comparable sales since the second quarter indicate positive trends moving into 2025, with expectations for continued sales growth throughout the year.

Potential Negatives

• Fourth quarter comparable sales declined by 3.0%, indicating continued challenges in sales performance despite a modest improvement from the previous quarter.
• Net income decreased significantly by 19.4% compared to the prior fiscal year, reflecting a downward trend in profitability.
• Earnings per share (EPS) also fell by 14.5% year-over-year, which could concern investors about the company's ability to generate shareholder returns.

FAQ

What were Academy Sports and Outdoors' fourth quarter comparable sales results?

Fourth quarter comparable sales declined by 3.0%, marking a 190 basis point improvement from the third quarter of 2024.

What is the diluted GAAP EPS reported for the fourth quarter?

The diluted GAAP EPS for the fourth quarter was $1.89, which is above the midpoint of the updated guidance provided.

When will the Jordan Brand launch at Academy Sports and Outdoors?

The Jordan Brand will launch in 145 stores and online starting in late April 2025.

What is the new quarterly dividend amount announced by Academy?

The company has increased its quarterly dividend by 18%, now set at $0.13 per share of common stock.

How many new stores does Academy plan to open in 2025?

Academy plans to open 20-25 new stores throughout 2025.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$ASO Hedge Fund Activity

We have seen 174 institutional investors add shares of $ASO stock to their portfolio, and 232 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• WILLIAM BLAIR INVESTMENT MANAGEMENT, LLC added 910,869 shares (+inf%) to their portfolio in Q4 2024, for an estimated $52,402,293
• VAUGHAN NELSON INVESTMENT MANAGEMENT, L.P. removed 808,250 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $47,169,470
• STEPHENS INVESTMENT MANAGEMENT GROUP LLC added 737,212 shares (+331.4%) to their portfolio in Q4 2024, for an estimated $42,411,806
• HOOD RIVER CAPITAL MANAGEMENT LLC added 735,608 shares (+inf%) to their portfolio in Q4 2024, for an estimated $42,319,528
• POINT72 ASSET MANAGEMENT, L.P. removed 710,589 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $41,469,974
• VOLORIDGE INVESTMENT MANAGEMENT, LLC removed 563,477 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $32,416,831
• UBS GROUP AG added 558,542 shares (+455.4%) to their portfolio in Q4 2024, for an estimated $32,132,921

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

$ASO Analyst Ratings

Wall Street analysts have issued reports on $ASO in the last several months. We have seen 4 firms issue buy ratings on the stock, and 1 firms issue sell ratings.

Here are some recent analyst ratings:

• Loop Capital Markets issued a "Buy" rating on 01/07/2025
• Citigroup issued a "Buy" rating on 12/18/2024
• Goldman Sachs issued a "Buy" rating on 12/17/2024
• Wedbush issued a "Underperform" rating on 10/03/2024
• Wells Fargo issued a "Buy" rating on 10/03/2024

To track analyst ratings and price targets for $ASO, check out Quiver Quantitative's $ASO forecast page.

Full Release

Fourth Quarter Comparable Sales Declined


(3.0)%


: a


+190


Basis Point Improvement vs. Third Quarter

2024

Fourth Quarter Diluted GAAP EPS of


$1.89


: Above the Midpoint of Updated Guidance Provided

Company Announces Launch of Jordan Brand in


145 Stores


and Online Beginning in Late April

Quarterly Dividend Increased by


18%


Per Share

KATY, Texas, March 20, 2025 (GLOBE NEWSWIRE) -- Academy Sports and Outdoors, Inc. (Nasdaq: ASO) ("Academy" or the "Company") today announced its financial results for the fourth quarter and fiscal year ended February 1, 2025. Fourth quarter and fiscal year 2024 included 13 and 52 weeks, respectively, compared to 14 and 53 weeks in fourth quarter and fiscal year 2023, respectively.

“Looking back on 2024, our team made significant strides toward achieving our long-term goals, all while thoughtfully navigating a challenging macroeconomic environment. As we head into 2025, we’re energized by the opportunities that lie ahead. The foundation for growth that we’ve built over the past year should yield meaningful results this year and into the future.” said Steve Lawrence, Chief Executive Officer. “This year, we are introducing an exciting slate of new brands, including the launch of the Jordan brand with a focus on sport, with shops in men's, women's and kids. We're also bolstering our targeted marketing capabilities, and rolling out new technology across our stores, all designed to elevate our ability to serve our core customers. These innovations, combined with our unwavering commitment to value leadership, position us for a pivotal year in which we anticipate a return to topline sales growth.”

Subsequent to the end of fiscal year 2024, on March 6, 2025, Academy announced its Board of Directors declared a quarterly cash dividend with respect to the quarter ended February 1, 2025, of $0.13 per share of common stock. This is a 18% increase from the previous quarterly dividend payment. The dividend is payable on April 17, 2025, to stockholders of record as of the close of business on March 25, 2025.

New Store Openings




Academy opened five new stores during the fourth quarter for a total of 16 new stores in 2024. In 2025, the Company plans on opening 20-25 new stores.

Academy Store Footprint Update

2025 Outlook




“The fourth quarter played out in-line with guidance, with customers relying on Academy to deliver value when it mattered most. Our profitability and cash flow from operations as a rate to sales is top quartile in retail. Our capital allocation mindset is unchanged, focusing on financial stability, investing into straight-forward growth strategies and returning value to shareholders through share buybacks and a modest dividend," stated Carl Ford, Executive Vice President and Chief Financial Officer. "We have seen sequential improvements in comp sales since the second quarter and we anticipate that will continue into 2025. We are focused on our long-range strategy of growing the Company by opening new stores, improving the omnichannel experience, investing in new brands while remaining committed to value, utilizing customer data more effectively and leveraging our supply chain. We will leverage our strong balance sheet and use our cash flows to invest into these strategies, because we expect them to drive our long-term success.”

The company expects the first quarter to be the most challenging from a sales and earnings per share prospective as they plan to open five stores and transition to the new Jordan floor set. They further expect their internal initiatives to start to positively impact results beginning in the second quarter. Additionally, they expect the back half of the year to be stronger than the first half as their internal initiatives take hold.

Academy is providing the following initial guidance for fiscal 2025 (year ending January 31, 2026). This guidance takes into account various factors, both internal and external, such as the expected benefits of the Company's growth initiatives, current consumer demand, the competitive environment, as well as the potential impacts from inflation and other economic risks. The earnings per share estimates do not include any potential future share repurchases and assume a tax rate of 22.0% to 23.0%.

Conference Call Info

Academy will host a conference call today at 10:00 a.m. Eastern Time to discuss its financial results. The call will be webcast at

investors.academy.com

. The following information is provided for those who would like to participate in the conference call:

A replay of the conference call will be available for approximately 30 days on the Company's website.

About Academy Sports + Outdoors

Academy is a leading full-line sporting goods and outdoor recreation retailer in the United States. Originally founded in 1938 as a family business in Texas, Academy has grown to 302 stores across 21 states. Academy’s mission is to provide “Fun for All” and Academy fulfills this mission with a localized merchandising strategy and value proposition that strongly connects with a broad range of consumers. Academy’s product assortment focuses on key categories of outdoor, apparel, footwear and sports & recreation through both leading national brands and a portfolio of private label brands.

Non-GAAP Measures

Adjusted EBITDA, Adjusted EBIT, Adjusted EBIT margin, Adjusted Net Income, Adjusted Earnings per Common Share, and Adjusted Free Cash Flow have been presented in this press release as supplemental measures of financial performance that are not required by, or presented in accordance with, generally accepted accounting principles (“GAAP”). The Company believes that the presentation of these non-GAAP measures is useful to investors as they provide additional information on comparisons between periods by excluding certain items that affect overall comparability. The Company uses these non-GAAP financial measures for business planning purposes, to consider underlying trends of its business, and in measuring its performance relative to others in the market, and believes presenting these measures also provides information to investors and others for understanding and evaluating trends in the Company’s operating results or measuring performance in the same manner as the Company’s management. Non-GAAP financial measures should be considered in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with GAAP. The calculation of these non-GAAP financial measures may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures. For additional information on these non-GAAP financial measures, please see our Annual Report for the fiscal year ended February 1, 2025 (the "Annual Report"), to be filed on March 20, 2025, which may be updated from time to time in our periodic filings with the Securities and Exchange Commission (the "SEC"), which are accessible on the SEC's website at www.sec.gov.

See “Reconciliations of GAAP to Non-GAAP Financial Measures” below for reconciliations of non-GAAP financial measures presented in this press release to their most directly comparable GAAP financial measures.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on Academy’s current expectations and are not guarantees of future performance. Forward-looking statements may incorporate words such as “believe,” “expect,", "anticipate," “forward,” “ahead,” “opportunities,” “plans,” “priorities,” “goals,” “future,” “short/long term,” “will,” “should,” or the negative version of these words or other comparable words. The forward-looking statements in this press release include, among other things, statements regarding the Company’s fiscal 2025 outlook under the caption "2025 Outlook," the Company's strategic plans and financial objectives, including the implementation of such plans, the growth of the Company's business and operations, including the opening of new stores and the expansion into new markets, the company's payment of dividends, including the timing and the amount thereof, share repurchases by the company, and the Company's expectations regarding its future performance and future financial condition are subject to various risks, uncertainties, assumptions, or changes in circumstances that are all difficult to predict or quantify. Actual results may differ materially from these expectations due to changes in global, regional, or local economic, business, competitive, market, regulatory, environmental, and other factors that could affect overall consumer spending or our industry, including the possible effects of ongoing macroeconomic challenges, inflation and in higher interest rates, trade policy changes or additional tariffs, geopolitical tensions, or changes to the financial health of our customers, many of which are beyond Academy's control. These and other important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in Academy's filings with the SEC, including the Annual Report, under the caption "Part 1A. Risk Factors," as may be updated from time to time in our periodic filings with the SEC. Any forward-looking statement in this press release speaks only as of the date of this release. Academy undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.

Adjusted EBITDA and Adjusted EBIT

We define “Adjusted EBITDA” as net income (loss) before interest expense, net, income tax expense and depreciation, and amortization, and impairment, and other adjustments included in the table below. We define “Adjusted EBIT” as Adjusted EBITDA less depreciation and amortization. We describe these adjustments reconciling net income (loss) to Adjusted EBITDA and Adjusted EBIT in the following table.