Academy Sports and Outdoors Inc Reports Second Quarter 2024 Financial Results
Intellectia.AI2024-09-10
Academy Sports and Outdoors, Inc. Reports Second Quarter 2024 Financial Results
Overview
Academy Sports and Outdoors, Inc. (NASDAQ: ASO), hereafter referred to as "Academy," has released its financial results for the second quarter of fiscal year 2024, which ended on August 3, 2024.
Key Financial Metrics
| Metric | Current Quarter | Year-Over-Year Change | Wall Street Consensus | Variance vs. Consensus |
|---|---|---|---|---|
| Net Sales | $1.57B | -2.2% | $1.57B | In-line |
| Adjusted Diluted EPS | $2.03 | - | $2.03 | In-line |
The company met Wall Street consensus estimates with net sales of $1.57 billion and an adjusted diluted EPS of $2.03. Despite a 2.2% decline in net sales year-over-year, Academy achieved significant progress in cash flow generation, up 60% year-to-date.
Operational Highlights
- Opened one new store in the second quarter, with plans to open 15 to 17 stores in total by the end of 2024.
- Introduced new omni-channel enhancements, including a partnership with Door Dash.
- Implemented a new loyalty program, contributing to customer engagement.
- Improved inventory discipline resulted in a 50 basis point gross margin expansion and a 5% reduction in units per store.
Comments from the Company's Officers
CEO Steve Lawrence expressed optimism about the company's strategic initiatives, mentioning that despite economic headwinds and operational challenges such as a temporary distribution center backlog, Academy remains committed to increasing store and online traffic. Chief Financial Officer Carl Ford highlighted the revision of full-year guidance while maintaining a focus on cost management and inventory levels to drive topline growth.
Dividends and Share Repurchase Program
The Board of Directors declared a quarterly cash dividend of $0.11 per share of common stock, payable on October 17, 2024. The company did not provide specific information about share repurchase activities within this release.
Forward Guidance
Academy revised its full-year fiscal 2024 guidance due to a challenging economic environment and operational setbacks. However, they reaffirmed the gross margin rate range, reflecting confidence in their margin management.
Stock Price Movement
Following the earnings release, Academy shares experienced a decline of approximately 2.17%, reflecting market reactions to the company's financial performance and revised guidance.
In summary, despite revenue and earnings challenges, Academy Sports and Outdoors, Inc. is taking steps to improve operational efficiencies and enhance customer engagement through strategic investments—positioning the company for long-term growth.
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