Bear of the Day: Academy Sports and Outdoors (ASO)
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 17 2024
0mins
Should l Buy ASO?
Source: NASDAQ.COM
Academy Sports and Outdoors (ASO) Stock Outlook: ASO is facing significant challenges, including declining sales and earnings, leading to a Zacks Rank #5 (Strong Sell) rating. Analysts have consistently lowered their earnings forecasts, indicating a poor profit potential.
Investment Caution Advised: Given the company's stagnation and recent performance, investors are advised to avoid ASO until there are signs of improved sales growth and positive changes in earnings estimates.
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Analyst Views on ASO
Wall Street analysts forecast ASO stock price to rise
12 Analyst Rating
4 Buy
8 Hold
0 Sell
Moderate Buy
Current: 54.270
Low
50.00
Averages
57.00
High
65.00
Current: 54.270
Low
50.00
Averages
57.00
High
65.00
About ASO
Academy Sports and Outdoors, Inc. is a full-line sporting goods and outdoor recreation retailer in the United States. The Company's product assortment is focused on key categories of outdoor, apparel, sports and recreation, and footwear through both national brands and a portfolio of over 19 private label brands. It has preferred access to national brands, such as Nike, Under Armour, adidas, Winchester, Columbia Sportswear, Brooks, Skechers, Yeti and Carhartt. Its private label brand portfolio consists of Academy Sports + Outdoors, Magellan Outdoors, BCG, O'rageous, Game Winner, Outdoor Gourmet, Freely and R.O.W. Its primary product types include coolers and drinkware, camping accessories and camping equipment; fitness equipment, fitness accessories and nutrition supplies; outdoor apparel, seasonal apparel, denim, work apparel, graphic t-shirts and accessories; casual shoes, slippers, seasonal footwear, socks; boys and girls footwear, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Academy Sports to Host Analyst Day Event
- Analyst Day Event: Academy Sports + Outdoors is set to host an Analyst Day on April 7, 2026, where CEO Steve Lawrence and other executives will discuss the company's long-term strategy and growth initiatives, likely attracting significant attention from investors and analysts, thereby enhancing market transparency.
- Live Webcast Details: The event will commence at 9:00 a.m. Eastern Time, with management's presentation available via live webcast on the company's website, ensuring broad investor participation, while presentation materials will be posted prior to the event to enhance timeliness and accessibility of information.
- Company Background: Founded in 1938, Academy Sports + Outdoors has expanded to over 300 stores across 21 states in the U.S., focusing on a localized merchandising strategy and value proposition that connects with a diverse consumer base, further solidifying its leadership in the sporting goods and outdoor recreation retail market.
- Product Portfolio Strength: Academy's product assortment spans outdoor, apparel, sports & recreation, and footwear, leveraging both leading national brands and a portfolio of private labels to provide a
See More
Academy Sports + Outdoors to Host Analyst Day Event
- Analyst Day Event: Academy Sports + Outdoors is set to host an Analyst Day on April 7, 2026, at 9:00 a.m. ET, where CEO Steve Lawrence and other executives will discuss the company's long-term strategy and growth initiatives, aiming to enhance investor confidence and attract more attention.
- Live Webcast Arrangement: The event will be accessible via a live webcast on the company's website, allowing investors to find the link under the 'News and Events' dropdown menu, ensuring transparency and enabling real-time information access for stakeholders.
- Company Background: Founded in 1938, Academy has expanded to over 300 stores across 21 states in the U.S., focusing on a localized merchandising strategy and value proposition that caters to a broad range of consumers, thereby solidifying its leadership in the sporting goods and outdoor recreation retail market.
- Product Portfolio Strength: Academy's product assortment spans outdoor, apparel, sports & recreation, and footwear, featuring both leading national brands and a portfolio of private labels, showcasing strong market competitiveness and aiming to provide a 'Fun for All' shopping experience.
See More
Nike's Recovery Faces Critical Challenges Ahead of Earnings
- Disappointing Earnings Outlook: Nike is set to release its fiscal 2026 Q3 earnings report, with analysts expressing caution regarding performance in China, anticipating continued sales declines that could lead to further stock price drops and impact investor confidence.
- Inventory Management Improvements: Since taking over in October 2024, CEO Elliott Hill has cleared classic inventory and launched new product lines; however, the stock is still down approximately 35% from its 52-week high, reflecting market skepticism about recovery efforts.
- North American Market Growth: Nike's sales in North America rose 9% year-over-year to $5.6 billion, making it the company's largest market, but analysts note that growth is primarily driven by wholesale sales, necessitating attention to retail performance.
- Investor Confidence Wavers: While 61% of analysts maintain a buy rating on Nike, concerns arise as direct-to-consumer revenues fell 9%, leading investors to adopt a cautious stance on future growth amid increasing global economic uncertainties.
See More
Pro Padel League Raises $15 Million in Funding Round
- Funding Expansion: The Pro Padel League has raised $15 million in its latest funding round, led by Charlotte Hornets co-chairman Rick Schnall, highlighting the growing investment enthusiasm for this emerging sport.
- Infrastructure Development: The new funds will be allocated to expanding the league's front office, building infrastructure, and creating a comprehensive event calendar to support player development, thereby enhancing the league's overall operational efficiency and market appeal.
- Valuation Surge: Over the past year, the valuations of Pro Padel League franchises have exceeded $10 million, a significant increase from the $200,000 entry fee in 2023, reflecting market recognition and future growth potential for the sport.
- Rapid Participant Growth: By 2030, the U.S. is projected to have 20,000 padel courts and 15 million active players, a substantial increase from just a few hundred courts today, indicating the sport's accelerating popularity in the U.S. and promising future prospects.
See More
Academy Sports Partners with Mastercard for Co-Branded Credit Card
- Credit Card Partnership: Academy Sports has launched a co-branded credit card with Mastercard and Bread Financial, aimed at stimulating purchases through rewards and exclusive offers, which is expected to enhance customer loyalty and sales.
- Rewards Structure: Cardholders earn $25 back for every $500 spent at Academy, while also receiving cash back on purchases made at non-Academy stores, significantly increasing the attractiveness of the card for consumers.
- Interest Rate Range: The credit card, managed by Synchrony Bank, features interest rates ranging from 17% to 33% based on the cardholder's credit score, which may deter some consumers from utilizing the credit option due to high borrowing costs.
- Market Response: Despite the new credit card launch, Academy Sports' recent earnings report indicated a non-GAAP EPS of $1.97 for Q4 2026, missing expectations by $0.08, and revenue also fell short of market forecasts, raising concerns about the company's future growth prospects.
See More
Lemonade Stock Rises 16.4% After Upgrade by Morgan Stanley
- Lemonade Stock Surge: Digital insurance provider Lemonade (NYSE:LMND) saw a 16.4% increase on Tuesday after Morgan Stanley upgraded its rating from Equalweight to Overweight, reflecting positive market sentiment regarding its partnership with Tesla for auto insurance, which could attract more investor interest in its growth potential.
- Coherent Stock Recovery: Materials and photonics company Coherent (NYSE:COHR) rose by 6.9% on Wednesday after Stifel raised its price target, indicating market recognition of its strong position to benefit from the buildout of AI datacenters, potentially driving further developments in this sector.
- Fast-Food Giant's Resilience: Restaurant Brands (NYSE:QSR) experienced a 3.2% stock increase on Monday following a significant drop in crude oil prices, which alleviated inflation concerns, showcasing the company's potential in cost control and possibly enhancing its competitive edge in the market.
- Academy Sports Rebound: Sporting goods retailer Academy Sports & Outdoor (NASDAQ:ASO) rebounded with a 2.1% increase on Wednesday after a sharp sell-off, as investors focused on its positive full-year outlook and dividend increase, indicating sustained market confidence in its long-term growth prospects.
See More
Academy Sports to Host Analyst Day Event
- Analyst Day Event: Academy Sports + Outdoors is set to host an Analyst Day on April 7, 2026, where CEO Steve Lawrence and other executives will discuss the company's long-term strategy and growth initiatives, likely attracting significant attention from investors and analysts, thereby enhancing market transparency.
- Live Webcast Details: The event will commence at 9:00 a.m. Eastern Time, with management's presentation available via live webcast on the company's website, ensuring broad investor participation, while presentation materials will be posted prior to the event to enhance timeliness and accessibility of information.
- Company Background: Founded in 1938, Academy Sports + Outdoors has expanded to over 300 stores across 21 states in the U.S., focusing on a localized merchandising strategy and value proposition that connects with a diverse consumer base, further solidifying its leadership in the sporting goods and outdoor recreation retail market.
- Product Portfolio Strength: Academy's product assortment spans outdoor, apparel, sports & recreation, and footwear, leveraging both leading national brands and a portfolio of private labels to provide a
See More
Academy Sports + Outdoors to Host Analyst Day Event
- Analyst Day Event: Academy Sports + Outdoors is set to host an Analyst Day on April 7, 2026, at 9:00 a.m. ET, where CEO Steve Lawrence and other executives will discuss the company's long-term strategy and growth initiatives, aiming to enhance investor confidence and attract more attention.
- Live Webcast Arrangement: The event will be accessible via a live webcast on the company's website, allowing investors to find the link under the 'News and Events' dropdown menu, ensuring transparency and enabling real-time information access for stakeholders.
- Company Background: Founded in 1938, Academy has expanded to over 300 stores across 21 states in the U.S., focusing on a localized merchandising strategy and value proposition that caters to a broad range of consumers, thereby solidifying its leadership in the sporting goods and outdoor recreation retail market.
- Product Portfolio Strength: Academy's product assortment spans outdoor, apparel, sports & recreation, and footwear, featuring both leading national brands and a portfolio of private labels, showcasing strong market competitiveness and aiming to provide a 'Fun for All' shopping experience.
See More
Nike's Recovery Faces Critical Challenges Ahead of Earnings
- Disappointing Earnings Outlook: Nike is set to release its fiscal 2026 Q3 earnings report, with analysts expressing caution regarding performance in China, anticipating continued sales declines that could lead to further stock price drops and impact investor confidence.
- Inventory Management Improvements: Since taking over in October 2024, CEO Elliott Hill has cleared classic inventory and launched new product lines; however, the stock is still down approximately 35% from its 52-week high, reflecting market skepticism about recovery efforts.
- North American Market Growth: Nike's sales in North America rose 9% year-over-year to $5.6 billion, making it the company's largest market, but analysts note that growth is primarily driven by wholesale sales, necessitating attention to retail performance.
- Investor Confidence Wavers: While 61% of analysts maintain a buy rating on Nike, concerns arise as direct-to-consumer revenues fell 9%, leading investors to adopt a cautious stance on future growth amid increasing global economic uncertainties.
See More
Pro Padel League Raises $15 Million in Funding Round
- Funding Expansion: The Pro Padel League has raised $15 million in its latest funding round, led by Charlotte Hornets co-chairman Rick Schnall, highlighting the growing investment enthusiasm for this emerging sport.
- Infrastructure Development: The new funds will be allocated to expanding the league's front office, building infrastructure, and creating a comprehensive event calendar to support player development, thereby enhancing the league's overall operational efficiency and market appeal.
- Valuation Surge: Over the past year, the valuations of Pro Padel League franchises have exceeded $10 million, a significant increase from the $200,000 entry fee in 2023, reflecting market recognition and future growth potential for the sport.
- Rapid Participant Growth: By 2030, the U.S. is projected to have 20,000 padel courts and 15 million active players, a substantial increase from just a few hundred courts today, indicating the sport's accelerating popularity in the U.S. and promising future prospects.
See More
Academy Sports Partners with Mastercard for Co-Branded Credit Card
- Credit Card Partnership: Academy Sports has launched a co-branded credit card with Mastercard and Bread Financial, aimed at stimulating purchases through rewards and exclusive offers, which is expected to enhance customer loyalty and sales.
- Rewards Structure: Cardholders earn $25 back for every $500 spent at Academy, while also receiving cash back on purchases made at non-Academy stores, significantly increasing the attractiveness of the card for consumers.
- Interest Rate Range: The credit card, managed by Synchrony Bank, features interest rates ranging from 17% to 33% based on the cardholder's credit score, which may deter some consumers from utilizing the credit option due to high borrowing costs.
- Market Response: Despite the new credit card launch, Academy Sports' recent earnings report indicated a non-GAAP EPS of $1.97 for Q4 2026, missing expectations by $0.08, and revenue also fell short of market forecasts, raising concerns about the company's future growth prospects.
See More
Lemonade Stock Rises 16.4% After Upgrade by Morgan Stanley
- Lemonade Stock Surge: Digital insurance provider Lemonade (NYSE:LMND) saw a 16.4% increase on Tuesday after Morgan Stanley upgraded its rating from Equalweight to Overweight, reflecting positive market sentiment regarding its partnership with Tesla for auto insurance, which could attract more investor interest in its growth potential.
- Coherent Stock Recovery: Materials and photonics company Coherent (NYSE:COHR) rose by 6.9% on Wednesday after Stifel raised its price target, indicating market recognition of its strong position to benefit from the buildout of AI datacenters, potentially driving further developments in this sector.
- Fast-Food Giant's Resilience: Restaurant Brands (NYSE:QSR) experienced a 3.2% stock increase on Monday following a significant drop in crude oil prices, which alleviated inflation concerns, showcasing the company's potential in cost control and possibly enhancing its competitive edge in the market.
- Academy Sports Rebound: Sporting goods retailer Academy Sports & Outdoor (NASDAQ:ASO) rebounded with a 2.1% increase on Wednesday after a sharp sell-off, as investors focused on its positive full-year outlook and dividend increase, indicating sustained market confidence in its long-term growth prospects.
See More
