Academy Sports and Outdoors reported second-quarter earnings that fell short of analyst expectations, sending shares down over 7% premarket on Tuesday despite posting positive comparable sales growth for the first time in several quarters.
The sporting goods retailer reported adjusted earnings per share of $1.94 for the second quarter, missing the analyst estimate of $2.16 by $0.22. Revenue came in at $1.6 billion, in line with consensus estimates and up 3.3% YoY. Comparable sales increased 0.2%, a significant improvement from the 6.9% decline in the same quarter last year. The company’s eCommerce sales were particularly strong, jumping 17.7%.
"We were pleased to see sales inflect to a positive comp in the second quarter, driven by steady improvements in the business that are a result of the progress we continue to make against our strategic initiatives," said Steve Lawrence, Chief Executive Officer. "Customers are gravitating to our diversified assortment and our value proposition is resonating with them."
ASO updated its fiscal 2025 guidance, raising the low end of its sales forecast while maintaining the high end. The company now expects revenue between $6 billion and $6.265 billion, compared to the analyst consensus of $6.09 billion. For earnings, Academy projects adjusted EPS of $5.60 to $6.30, versus the consensus estimate of $5.85 and above the previous guidance of $5.45 to $6.25.
The retailer opened three new stores during the quarter in Florida, Virginia and West Virginia, bringing its total to 306 locations across 21 states. Academy plans to open a total of 20 to 25 stores in fiscal 2025.
The company also noted it has largely mitigated the impact of current incremental tariffs through various tactics, including partnerships with factories and vendors, shifting production to different countries, and strategic pricing adjustments.
ASO’s Board of Directors declared a quarterly cash dividend of $0.13 per share, payable on October 9 to stockholders of record as of September 11.
Source :
https://www.investing.com/news/stock-market-news/academy-sports-and-outdoors-shares-drop-as-q2-earnings-miss-estimates-4219284
