Academy Sports And Outdoors Gains On Q3 Bottom-Line Beat

  • Academy Sports And Outdoors Inc ASO reported a third-quarter FY22 sales decline of 6.2% year-on-year to $1.49 billion, missing the consensus of $1.55 billion.
  • The decline in sales was primarily due to fewer transactions compared to last year, mainly from a decline in Hunting sales within the Outdoors division. 
  • Comparable sales declined 7.2%, and e-commerce sales grew 10.5%.
  • Adjusted EPS of $1.69 beat the analyst consensus of $1.59.
  • Gross margin contracted 20 basis points Y/Y to 35%, and gross profit fell 6.7% to $522.5 million.
  • Operating margin was 12%, and operating income for the quarter declined 16.9% to $179.5 million.
  • The company held $318.2 million in cash and equivalents as of October 29, 2022. Cash provided by operating activities for the quarter totaled $50.8 million.
  • Adjusted EBITDA for the quarter totaled $217 million.
  • Academy's Board declared a quarterly cash dividend of $0.075 per share of common stock, payable on January 13, 2023, to stockholders of record on December 20, 2022.
  • As of October 29, 2022, the company had approximately $400 million remaining under its share repurchase program.
  • Outlook: ASO tightened its FY22 sales guidance from $6.43 billion - $6.63 billion to $6.43 billion - $6.49 billion versus the consensus of $6.55 billion.
  • The company raised its FY22 adjusted EPS outlook to $7.50 - $7.65 from the prior forecast of $6.75 - $7.50, against the consensus of $7.18.
  • Price Action: ASO shares traded higher by 13.3% at $55.86 on the last check Wednesday.
  • Photo Via Company
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