Academy Sports and Outdoors filed a Form S-1 with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering. No pricing details were mentioned in the filing but the offering is valued at up to $100 million, although this number is usually just a placeholder. Also considering how much Academy pulls in revenues, this IPO could truly be massive. The company intends to list its shares on the NYSE under the symbol ASO.
The underwriters for this offering are Credit Suisse, JPMorgan, KKR, BofA Securities, Evercore ISI, Guggenheim Securities, UBS Investment Bank, Wells Fargo, Stephens, Capital One Securities, Loop Capital Markets, CastleOak Securities, Blaylock Van, Cabrera Capital Markets, Ramirez, and R. Seelaus & Co.
This is one of the leading full-line sporting goods and outdoor recreation retailers in the United States. The company estimates that it served 30 million unique customers and completed roughly 80 million transactions in 2019 across its omnichannel platform and highly productive stores, resulting in net sales of $4.8 billion and making it the largest value-oriented sporting goods and outdoor recreation retailer in the country.
The product assortment focuses on key categories of outdoor, apparel, footwear, and sports & recreation (representing 32%, 29%, 21%, and 18% of 2019 net sales, respectively).
The company was originally founded in 1938 as a family business in Texas, but it has grown to 259 stores across 16 contiguous states, primarily in the southern United States.
In terms of its finances, Academy finished the twelve months ended August 1, with roughly $5.3 billion in sales, $204 million of net income, and $449 million in adjusted EBITDA. Although comparable sales have been negative for the past three fiscal years, the company has seen four consecutive quarters of positive comparable sales as of the second quarter of 2020.
Academy intends to use the net proceeds from this offering for general corporate purposes, which may include the repayment of certain indebtedness. The firm will update this as it gets closer to the IPO date.
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