Academy Sports and Outdoors Inc (ASO) Q3 2024 Earnings Call Highlights: Navigating Challenges …

• Revenue: Third quarter sales of $1.34 billion.

• Comparable Sales: Declined 4.9% in the third quarter.

• Gross Margin: 34.0%, a decrease of 50 basis points compared to the previous year.

• Net Income: GAAP net income of $65.8 million.

• Diluted Earnings Per Share: GAAP diluted EPS of $0.92; adjusted EPS of $0.98.

• Adjusted Free Cash Flow: Generated approximately $97 million in the third quarter.

• Store Openings: Opened 16 new stores year-to-date, bringing the total to 298 stores.

• Inventory: Inventory balance of $1.52 billion, a 2.2% increase compared to last year.

• Share Repurchase Program: New $700 million authorization over the next three years.

• Guidance for Fiscal 2024: Net sales expected to range from $5.89 billion to $5.94 billion; GAAP net income between $400 million and $425 million.

Release Date: December 10, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• Academy Sports and Outdoors Inc (NASDAQ:ASO) announced a new $700 million share repurchase program, reflecting confidence in the business.

• The company successfully opened 16 new stores in 2024, contributing to a 6% unit growth and expanding its footprint into new markets.

• Academy Sports and Outdoors Inc (NASDAQ:ASO) reported positive adjusted free cash flow for the 20th consecutive quarter.

• The company experienced strong sales growth in its Outdoor division, with a 4% increase driven by camping and hunting businesses.

• Academy Sports and Outdoors Inc (NASDAQ:ASO) is expanding its omnichannel capabilities, including a partnership with DoorDash for same-day delivery options.

• Comparable sales declined by 4.9% in the third quarter, impacted by unseasonably warm weather and the absence of the Texas Rangers World Series run.

• Gross margin decreased by 50 basis points due to increased supply chain costs and a mix shift in outdoor merchandise.

• The apparel division saw a 9% decline in sales, affected by warm weather and a lack of demand for fall seasonal categories.

• SG&A expenses increased by $19.3 million, primarily due to investments in new stores and strategic initiatives.

• The company narrowed its full-year guidance, reflecting a cautious outlook due to macroeconomic uncertainties and consumer behavior.

Q: Can you provide commentary on Black Friday and Cyber Week performance and how it compares to your guidance? A: Steven Lawrence, CEO: Black Friday was the largest selling day in our history, and the weekend was the largest weekend. We saw an acceleration in business from the third week of November, aided by cold weather. Despite five fewer selling days this year, we are tracking at or ahead of our forecast using 2019 builds as a model. We remain mindful of the significant business ahead in the next three weeks, which include three of the four largest weeks of the year.

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