Academy Sports & Outdoors (ASO) Q3 2024 Earnings
How Did ASO Stock React to Q3 2024 Earnings?
S&P 500 over the same 30 days: −3.42%.
Did ASO Beat Earnings? Q3 2024 Results
No. Academy Sports & Outdoors reported Q3 2024 earnings of $0.98 a share on Dec 10, 2024, missing the $1.27 consensus estimate by 23.1%. Revenue was $1.3B against a $1.4B estimate.
Academy Sports & Outdoors delivered a disappointing third quarter, missing on both the top and bottom lines as softer consumer demand and cost pressures weighed on results. Adjusted diluted EPS came in at $0.98, falling 23.08% short of the $1.27 consensus estimate, while net sales slipped 3.9% year-over-year to $1.34 billion, missing expectations by 2.93%. The earnings shortfall was driven largely by significant cost deleverage, with SG&A expenses climbing to 27.2% of sales from 24.7% a year ago, reflecting the drag of new store openings against a backdrop of lower comparable sales. On the positive side, comparable sales declined 4.9%, a meaningful improvement from the 8.0% drop recorded in the prior-year quarter, and the Outdoor division posted a 7% sales gain. Looking ahead, the company narrowed its full-year adjusted diluted EPS guidance to $5.80 to $6.10 and plans to open 20 to 25 new stores in fiscal 2025, a more measured pace than initially targeted, while also expanding its Nike assortment to over 140 locations in early 2025.
- Outdoor division sales increased 7% year-over-year in Q3
- Comparable sales improved to (4.9)% from (8.0)% in the prior year quarter
- New stores exceeding expectations; prior year vintages continue to grow
- Inventory units per store down 7% and dollars per store down 4%
- Year-to-date GAAP operating cash flow up 29%; adjusted free cash flow up 67%
“We delivered third quarter sales in line with expectations and were encouraged to see an improvement in comp sales trends versus the first half of the year. In our Outdoor division, the team drove a sales increase in the quarter of 7% compared to fiscal third quarter last year. We are excited that the 16 new stores that we have opened this year are exceeding our expectations and that our prior year vintages continue to grow. The team has made tremendous progress refining our new store opening process and pipeline, as well as improving our website experience, expanding our targeted marketing capabilities with our new loyalty program and streamlining our supply chain. The fundamentals of our business continue to strengthen, and we look forward to building on this momentum throughout the fourth quarter and beyond.”
Academy Sports & Outdoors CEO, on the earnings call
What Was Academy Sports & Outdoors's Outlook in Q3 2024?
Academy narrowed its fiscal 2024 guidance: net sales of $5.895B to $5.940B (previously up to $6.075B), comparable sales of (6.0)% to (5.0)% (previously (6.0)% to (3.0)%), gross margin rate of 34.3% to 34.5%, GAAP net income of $400M to $425M, adjusted net income of $420M to $445M, GAAP diluted EPS of $5.50 to $5.80, adjusted diluted EPS of $5.80 to $6.10, capital expenditures of $185M to $210M, and adjusted free cash flow of $310M to $350M. The company plans to open 20 to 25 new stores in fiscal 2025, representing approximately 7.5% annual unit growth at the midpoint. Guidance reflects a tax rate of approximately 23%.
ASO YoY Financials
| Metric | Q3 2024 | Q3 2023 | Year over year |
|---|---|---|---|
| Revenue | $1.3B | $1.4B | −3.9% |
| Gross Profit | $456.7M | $482.6M | −5.4% |
| Operating Income | $91.5M | $136.7M | −33.1% |
| Net Income | $65.8M | $100.0M | −34.2% |
Figures from SEC filings and company reports. Not investment advice.