Academy Sports & Outdoors (ASO) Q4 2024 Earnings
GAAP net income includes a $15.0 million gain from a credit card fee litigation settlement and a $7.1 million gain on a sale-leaseback transaction in Q4. Adjusted EPS excludes $6.2 million of equity compensation expense (net of $1.1 million tax effect).
How Did ASO Stock React to Q4 2024 Earnings?
S&P 500 over the same 30 days: −6.76%.
Did ASO Beat Earnings? Q4 2024 Results
Yes. Academy Sports & Outdoors reported Q4 2024 earnings of $1.96 a share on Mar 20, 2025, beating the $1.82 consensus estimate by 7.6%. Revenue was $1.7B against a $1.7B estimate.
Academy Sports & Outdoors posted a beat on both lines in its fiscal fourth quarter, with adjusted EPS of $1.96 clearing the $1.82 consensus by 7.59% even as revenue of $1.68 billion edged just 0.09% above expectations amid a 6.6% year-over-year sales decline. The headline drop in revenue was amplified by a calendar mismatch, as the prior-year quarter included an extra week that contributed approximately $73.30 million to net sales, making underlying trends look softer than they were; comparable sales fell 3.0%, a sequential improvement of 190 basis points from Q3. Gross margin compression to 32.2% from 33.3% a year ago, combined with SG&A deleverage, weighed on profitability, though aggressive share repurchases of $368.30 million for the full year helped support per-share results. Looking ahead, the most closely watched catalyst is the company's planned Jordan Brand launch across 145 stores beginning in late April, a move management is positioning as central to its return-to-growth strategy; fiscal 2025 guidance calls for net sales of $6.09 billion to $6.26 billion and adjusted diluted EPS of $5.75 to $6.20, with the back half of the year expected to carry a disproportionate share of the improvement.
- Comparable sales declined (3.0)%, a 190 basis point improvement vs. Q3 2024
- Gross margin compressed to 32.2% from 33.3% due to higher cost of goods sold as a percentage of sales
- SG&A expenses as a percentage of sales increased to 23.0% from 21.9%
- Shorter quarter (13 weeks vs. 14 weeks) reduced net sales by approximately $73.3 million and GAAP EPS by $0.08 year-over-year
- Net income included $15.0 million gain from credit card fee litigation settlement and $7.1 million gain on sale-leaseback transaction
“Looking back on 2024, our team made significant strides toward achieving our long-term goals, all while thoughtfully navigating a challenging macroeconomic environment. As we head into 2025, we're energized by the opportunities that lie ahead. The foundation for growth that we've built over the past year should yield meaningful results this year and into the future.”
Academy Sports & Outdoors CEO, on the earnings call
What Was Academy Sports & Outdoors's Outlook in Q4 2024?
For fiscal 2025 (year ending January 31, 2026), Academy guided net sales of $6,090M-$6,265M (4.2% growth at midpoint), comparable sales of (2.0)% to +1.0% (+460 bps improvement at midpoint), gross margin rate of 34.0%-34.5%, GAAP net income of $375M-$410M, adjusted net income of $400M-$435M, GAAP diluted EPS of $5.40-$5.85, adjusted diluted EPS of $5.75-$6.20, capital expenditures of $220M-$250M, and adjusted free cash flow of $290M-$320M. EPS guidance excludes potential future share repurchases and assumes a 22.0%-23.0% tax rate. Q1 is expected to be the most challenging quarter as the company opens five stores and transitions to the Jordan floor set, with internal initiatives expected to positively impact results beginning in Q2. The back half of the year is expected to be stronger than the first half. The company plans 20-25 new store openings in fiscal 2025.
ASO YoY Financials
| Metric | Q4 2024 | Q4 2023 | Year over year |
|---|---|---|---|
| Revenue | $1.7B | $1.8B | −6.6% |
| Gross Profit | $540.2M | $565.4M | −4.5% |
| Operating Income | $154.7M | $204.0M | −24.2% |
| Net Income | $133.6M | $168.2M | −20.5% |
Figures from SEC filings and company reports. Not investment advice.