Academy Sports Struggles In Q3 With Lower Sales And Profit, Cuts Outlook For 2024
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 10 2024
0mins
Source: Benzinga
Earnings Report: Academy Sports and Outdoors, Inc. reported third-quarter adjusted earnings per share of 98 cents, missing estimates, with quarterly sales of $1.34 billion also falling short of expectations. The company experienced a comparable sales decline of 4.9% but opened eight new stores during the quarter.
Outlook and Stock Performance: The company revised its fiscal year 2024 net sales and adjusted EPS projections downward, anticipating a decrease in comparable sales. ASO stock has dropped over 25% year-to-date, trading down 3.79% to $48.50 in premarket activity.
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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: 54.530
Low
50.00
Averages
57.00
High
65.00
Current: 54.530
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 + Outdoors Expands with New Store Openings
- New Store Openings: Academy Sports + Outdoors is set to open three new locations in Q2 2026, including Altoona, PA, and two in Tennessee, which will enhance its local market presence and create nearly 200 new jobs for the communities.
- Community Support Commitment: Each new store will donate $15,000 to local non-profits to support over 60 children, reflecting the company's ongoing investment and responsibility towards community engagement, thereby enhancing its brand image.
- Continued Expansion Strategy: In 2025, Academy opened 24 new stores across 16 states, following 16 new stores in 2024, demonstrating strong growth momentum in the U.S. market and attracting more consumers through localized product strategies.
- Enhanced Customer Experience: The launch of the new myAcademy Rewards Mastercard® and improved myAcademy Rewards program provides unique benefits and savings opportunities for customers, further solidifying Academy's competitive edge in the sports and outdoor retail sector.
See More
Academy Sports + Outdoors to Open New Stores in Pennsylvania and Tennessee
- New Store Openings: Academy Sports + Outdoors plans to open three new locations in Q2 2026 in Altoona, Pennsylvania, and North Knoxville and Morristown, Tennessee, further expanding its national footprint and demonstrating a commitment to long-term strategic growth.
- Community Support Initiatives: Each new store will donate $15,000 to local non-profits, benefiting over 60 children, showcasing Academy's commitment to community engagement and enhancing its brand image.
- Job Creation: The three new stores are expected to create nearly 200 new jobs in their local communities, driving local economic growth while attracting more customers and increasing market share.
- Enhanced Customer Experience: Academy is focused on improving customer experience through the rollout of the myAcademy Rewards Mastercard® and enhanced myAcademy Rewards program, providing unique benefits and savings opportunities, thereby solidifying its competitive edge in the sports and outdoor retail market.
See More
Latest Wall Street Rating Updates
- Nvidia Price Target Raised: UBS raised Nvidia's price target from $245 to $275, anticipating first-quarter revenue around $81 billion, suggesting a $3 billion beat against market expectations, highlighting the company's robust growth potential in the AI sector.
- Amazon Alexa Shopping Advantage: Bank of America reiterated its buy rating on Amazon, stating that the new Alexa for Shopping will replace Rufus, leveraging personalized recommendations to enhance user experience and further solidify Amazon's leadership in the e-commerce market.
- Apple Stock Price Target Increase: Evercore raised Apple's price target from $330 to $365, projecting that even with modest iPhone unit growth, the company can achieve low to mid-teens EPS and free cash flow growth due to durable services growth and ASP tailwinds from premium models.
- Starbucks Price Target Upgraded: TD Cowen raised Starbucks' price target from $106 to $120, citing multiple tangible drivers for positive sales revisions in a strong market backdrop, and forecasting margin recovery as labor investments are prioritized.
See More
Alamar Capital Management Liquidates Academy Sports Stake
- Liquidation Transaction: Alamar Capital Management disclosed on May 13 that it sold all 51,636 shares of Academy Sports and Outdoors, valued at approximately $2.6 million, indicating a complete exit from the position and reflecting a cautious outlook on the company's future performance.
- Position Size Change: The liquidation means that Academy Sports no longer constitutes 1.4% of Alamar's assets under management (AUM), which stood at $189.2 million as of the previous quarter, highlighting a reevaluation of the investment portfolio.
- Declining Performance: Academy Sports reported a 1.5% drop in same-store sales for the latest fiscal year, including a 1.6% decline in Q4, with management projecting a 1% decrease to a 2% increase in comps this year, indicating heightened macroeconomic pressures and investor caution regarding future performance.
- Underwhelming Market Returns: As of May 13, Academy Sports' stock returned 11.4%, significantly trailing the S&P 500 index's 28.2%, suggesting underperformance in the market that could impact investor confidence and future capital inflows.
See More
Academy Sports Prices $500 Million Senior Secured Notes Offering
- Private Offering Scale: Academy Sports and its wholly-owned subsidiary, Academy, Ltd., successfully priced a $500 million offering of 5.875% senior secured notes, expected to close on May 14, 2026, demonstrating the company's financing capability and market confidence.
- Clear Use of Proceeds: The net proceeds from this offering will be used to redeem all outstanding senior secured notes due 2027, repay loans, and for general corporate purposes, indicating the company's strategic intent to optimize its capital structure and reduce financial costs.
- Robust Guarantee Structure: The notes will be secured by certain subsidiaries of Academy, providing senior guarantees and a first-priority lien on nearly all personal property, enhancing investor confidence in the security of the notes.
- Compliance and Market Positioning: The notes are not registered under the Securities Act and are offered only to qualified institutional buyers and non-U.S. persons, reflecting Academy's commitment to regulatory compliance while actively expanding its international market presence.
See More
Academy Sports Prices $500M Senior Secured Notes Offering
- Offering Size: Academy Sports + Outdoors announced the pricing of $500 million in 5.875% senior secured notes through its wholly owned subsidiary, with the offering expected to close on May 14, 2026, thereby strengthening its capital structure.
- Use of Proceeds: The net proceeds from this offering will be utilized to redeem all outstanding senior secured notes due 2027, repay all amounts under its term loan facility, and cover related fees and expenses, optimizing the company's financial position.
- Strategic Implications: By redeeming high-cost debt early, Academy Sports aims to reduce interest expenses and enhance financial flexibility, further supporting its long-term growth strategy and operational efficiency.
- Market Confidence: This notes offering reflects market confidence in Academy Sports' financial health and is expected to help the company capitalize on opportunities during the upcoming 2026 World Cup.
See More
Academy Sports + Outdoors Expands with New Store Openings
- New Store Openings: Academy Sports + Outdoors is set to open three new locations in Q2 2026, including Altoona, PA, and two in Tennessee, which will enhance its local market presence and create nearly 200 new jobs for the communities.
- Community Support Commitment: Each new store will donate $15,000 to local non-profits to support over 60 children, reflecting the company's ongoing investment and responsibility towards community engagement, thereby enhancing its brand image.
- Continued Expansion Strategy: In 2025, Academy opened 24 new stores across 16 states, following 16 new stores in 2024, demonstrating strong growth momentum in the U.S. market and attracting more consumers through localized product strategies.
- Enhanced Customer Experience: The launch of the new myAcademy Rewards Mastercard® and improved myAcademy Rewards program provides unique benefits and savings opportunities for customers, further solidifying Academy's competitive edge in the sports and outdoor retail sector.
See More
Academy Sports + Outdoors to Open New Stores in Pennsylvania and Tennessee
- New Store Openings: Academy Sports + Outdoors plans to open three new locations in Q2 2026 in Altoona, Pennsylvania, and North Knoxville and Morristown, Tennessee, further expanding its national footprint and demonstrating a commitment to long-term strategic growth.
- Community Support Initiatives: Each new store will donate $15,000 to local non-profits, benefiting over 60 children, showcasing Academy's commitment to community engagement and enhancing its brand image.
- Job Creation: The three new stores are expected to create nearly 200 new jobs in their local communities, driving local economic growth while attracting more customers and increasing market share.
- Enhanced Customer Experience: Academy is focused on improving customer experience through the rollout of the myAcademy Rewards Mastercard® and enhanced myAcademy Rewards program, providing unique benefits and savings opportunities, thereby solidifying its competitive edge in the sports and outdoor retail market.
See More
Latest Wall Street Rating Updates
- Nvidia Price Target Raised: UBS raised Nvidia's price target from $245 to $275, anticipating first-quarter revenue around $81 billion, suggesting a $3 billion beat against market expectations, highlighting the company's robust growth potential in the AI sector.
- Amazon Alexa Shopping Advantage: Bank of America reiterated its buy rating on Amazon, stating that the new Alexa for Shopping will replace Rufus, leveraging personalized recommendations to enhance user experience and further solidify Amazon's leadership in the e-commerce market.
- Apple Stock Price Target Increase: Evercore raised Apple's price target from $330 to $365, projecting that even with modest iPhone unit growth, the company can achieve low to mid-teens EPS and free cash flow growth due to durable services growth and ASP tailwinds from premium models.
- Starbucks Price Target Upgraded: TD Cowen raised Starbucks' price target from $106 to $120, citing multiple tangible drivers for positive sales revisions in a strong market backdrop, and forecasting margin recovery as labor investments are prioritized.
See More
Alamar Capital Management Liquidates Academy Sports Stake
- Liquidation Transaction: Alamar Capital Management disclosed on May 13 that it sold all 51,636 shares of Academy Sports and Outdoors, valued at approximately $2.6 million, indicating a complete exit from the position and reflecting a cautious outlook on the company's future performance.
- Position Size Change: The liquidation means that Academy Sports no longer constitutes 1.4% of Alamar's assets under management (AUM), which stood at $189.2 million as of the previous quarter, highlighting a reevaluation of the investment portfolio.
- Declining Performance: Academy Sports reported a 1.5% drop in same-store sales for the latest fiscal year, including a 1.6% decline in Q4, with management projecting a 1% decrease to a 2% increase in comps this year, indicating heightened macroeconomic pressures and investor caution regarding future performance.
- Underwhelming Market Returns: As of May 13, Academy Sports' stock returned 11.4%, significantly trailing the S&P 500 index's 28.2%, suggesting underperformance in the market that could impact investor confidence and future capital inflows.
See More
Academy Sports Prices $500 Million Senior Secured Notes Offering
- Private Offering Scale: Academy Sports and its wholly-owned subsidiary, Academy, Ltd., successfully priced a $500 million offering of 5.875% senior secured notes, expected to close on May 14, 2026, demonstrating the company's financing capability and market confidence.
- Clear Use of Proceeds: The net proceeds from this offering will be used to redeem all outstanding senior secured notes due 2027, repay loans, and for general corporate purposes, indicating the company's strategic intent to optimize its capital structure and reduce financial costs.
- Robust Guarantee Structure: The notes will be secured by certain subsidiaries of Academy, providing senior guarantees and a first-priority lien on nearly all personal property, enhancing investor confidence in the security of the notes.
- Compliance and Market Positioning: The notes are not registered under the Securities Act and are offered only to qualified institutional buyers and non-U.S. persons, reflecting Academy's commitment to regulatory compliance while actively expanding its international market presence.
See More
Academy Sports Prices $500M Senior Secured Notes Offering
- Offering Size: Academy Sports + Outdoors announced the pricing of $500 million in 5.875% senior secured notes through its wholly owned subsidiary, with the offering expected to close on May 14, 2026, thereby strengthening its capital structure.
- Use of Proceeds: The net proceeds from this offering will be utilized to redeem all outstanding senior secured notes due 2027, repay all amounts under its term loan facility, and cover related fees and expenses, optimizing the company's financial position.
- Strategic Implications: By redeeming high-cost debt early, Academy Sports aims to reduce interest expenses and enhance financial flexibility, further supporting its long-term growth strategy and operational efficiency.
- Market Confidence: This notes offering reflects market confidence in Academy Sports' financial health and is expected to help the company capitalize on opportunities during the upcoming 2026 World Cup.
See More
