Why Academy Sports And Outdoors Shares Are Trading Lower Today

Academy Sports And Outdoors Inc ASO shares are plunging after the company reported fourth-quarter FY23 sales growth of 2.8% year-on-year to $1.794 billion, merely missing the analyst consensus estimate of $1.796 billion.

Comparable sales declined 3.6%. Adjusted EPS of $2.21 missed the analyst consensus estimate of $2.30. 

Gross margin expanded 50 basis points Y/Y to 33.3%, and gross profit rose 4.3% to $597 million.

Operating margin was 11.4%, and operating income for the quarter slipped 0.4% to $203.9 million. Adjusted EBITDA for the quarter totaled $255.2 million.

The company held $347.9 million in cash and equivalents as of February 3, 2024. The operating cash flow for the year totaled $535.7 million.

“In 2023, topline sales did not meet our expectations, but we were pleased with the Q4 trajectory change,” stated Carl Ford, Executive Vice President and Chief Financial Officer. “In 2024, we are focused on our long-range strategy of growing the Company by opening new stores, growing omnichannel sales, customer data acquisition and utilization, and improving our supply chain.”

On March 7, 2024, Academy announced its Board of Directors declared a quarterly cash dividend of $0.11 per share of common stock, representing a 22% increase from the previous dividend payment. 

Outlook: Academy expects FY24 sales of $6.070 billion – $6.350 billion versus the consensus of $6.379 billion.

ASO sees FY24 EPS of $5.90 – $6.90, below the estimate of $7.51. It sees comparable sales of (4)% to 1%. In 2024, the company plans to open 15-17 new stores.

Price Action: ASO shares traded lower by 7.17% at $66.14 on the last check Thursday.

Photo via Wikimedia Commons