Q2 2024 Academy Sports and Outdoors Inc Earnings Call Transcript
Key Points
- Gross margin rate increased by 50 basis points to 36.1% despite softer sales trends.
- New store growth remains strong, with the 2022 vintage of new stores posting positive comps for the second consecutive quarter.
- Digital sales penetration increased to 9.7% of total sales, driven by new capabilities like same-day delivery powered by DoorDash.
- Academy Sports and Outdoors Inc (ASO) launched a new loyalty program, myAcademy Rewards, which has seen strong customer sign-ups.
- Inventory management remains disciplined, with inventory units per store down 5% year-over-year.
- Sales for the second quarter were down 2.2% year-over-year, translating to a negative 6.9% comp on a shifted basis.
- The company faced significant disruptions due to weather events, including tornadoes and Hurricane Beryl, impacting sales by approximately $16 million.
- Issues with the new warehouse management system at the Georgia distribution center led to out-of-stocks, costing approximately $32 million in sales.
- The primary customer base, with annual incomes between $50,000 and $150,000, remains budget-conscious and cautious, impacting discretionary spending.
- SG&A expenses increased by $16 million or 150 basis points year-over-year, primarily due to investments in new stores and technology.
Good morning, ladies and gentlemen, and welcome to the Academy Sports and Outdoors second quarter fiscal 2024 Results conference call. At this time, this call is being recorded and all participants are in listen-only mode. (Operator Instructions).
I'll now turn the call over to Matt Hodges, Vice President of Investor Relations. For Academy Sports and Outdoors. Matt, please go ahead.
Good morning, everyone, and thank you for joining the Academy Sports and Outdoors second quarter 2024 financial results call. Participating on the call are Steve Lawrence, Chief Executive Officer, and Carl Ford, Chief Financial Officer.
As a reminder, statements in today's earnings release and the comments made by management during this call may be considered forward-looking statements. These statements are subject to risks and uncertainties that could cause our actual results to differ materially from our expectations and projections.
These risks and uncertainties
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