On June 11, 2024, Academy Sports and Outdoors Inc (ASO, Financial) released its 8-K filing detailing its financial results for the first quarter ended May 4, 2024. Academy Sports and Outdoors Inc is engaged in the retail business of sporting goods and outdoor recreation products, with product categories including outdoors, apparel, sports & recreation, and footwear.
Performance Overview
Academy Sports and Outdoors Inc (ASO, Financial) reported a net sales decline of 1.4% year-over-year to $1,364.2 million, missing the analyst estimate of $1,375.92 million. Comparable sales decreased by 5.7%, reflecting ongoing economic pressures on consumers. The company reported a GAAP diluted EPS of $1.01, or $1.08 on an adjusted basis, falling short of the analyst estimate of $1.18.
Financial Achievements and Challenges
Despite the challenging economic environment, Academy Sports and Outdoors Inc (ASO, Financial) opened two new stores during the first quarter and returned $132 million to shareholders through share repurchases and dividends. The company generated $200 million in cash from operations, which was strategically reinvested into growth initiatives.
Steve Lawrence, Chief Executive Officer, commented, "As expected, our first quarter results reflect that our customers remain under pressure in the current economic environment. We will navigate through the remainder of the year by continuing to lean into our position as the value leader in our space, while also inspiring customers to shop through introductions and expansions of new and innovative products."
Key Financial Metrics
| Metric | Q1 2024 | Q1 2023 | Change |
|---|---|---|---|
| Net Sales | $1,364.2 million | $1,383.6 million | (1.4)% |
| Comparable Sales | (5.7)% | (7.3)% | - |
| Net Income | $76.5 million | $94.0 million | (18.6)% |
| Adjusted Net Income | $81.6 million | $103.0 million | (20.8)% |
| GAAP Diluted EPS | $1.01 | $1.19 | (15.1)% |
| Adjusted Diluted EPS | $1.08 | $1.30 | (16.9)% |
Balance Sheet and Cash Flow Highlights
Academy Sports and Outdoors Inc (ASO, Financial) reported cash and cash equivalents of $378.1 million, a 28.0% increase from the previous year. Merchandise inventories decreased by 2.1% to $1,356.8 million, while long-term debt was reduced by 17.1% to $484.1 million. The company repurchased $123.5 million in stock and paid $8.2 million in dividends during the quarter.
Carl Ford, Chief Financial Officer, stated, "Academy generated $200 million in cash from operations during the quarter. We believe that investing this cash into the pillars of our long-range plan will result in long-term, sustainable sales and profit growth for Academy and our shareholders."
Outlook and Strategic Initiatives
Academy Sports and Outdoors Inc (ASO, Financial) reiterated its previous sales and net income guidance for fiscal 2024, while updating its earnings per share forecast to reflect the share repurchase activity completed in the first quarter. The company plans to open 15 to 17 new stores in 2024, continuing its expansion strategy.
Academy Sports and Outdoors Inc (ASO, Financial) remains focused on driving traffic, managing inventory to maintain margins, and controlling expenses as it invests in growth initiatives. The company's strong balance sheet and experienced leadership team position it well to navigate the current economic challenges and achieve its long-range goals.
Explore the complete 8-K earnings release (here) from Academy Sports and Outdoors Inc for further details.
