KATY, Texas – Academy Sports and Outdoors, Inc. (NASDAQ: ASO) reported lower-than-expected first-quarter earnings with adjusted diluted earnings per share (EPS) of $1.08, below analyst consensus of $1.23.
The company’s revenue also missed expectations, coming in at $1.36 billion versus expectations of $1.38 billion. The sporting goods and outdoor retailer’s share price fell 3.6% in response to lower earnings and a revised fiscal 2025 outlook.
Compared to the prior year, Academy net sales decreased 1.4% and comparable sales decreased 5.7%. CEO Steve Lawrence attributed the negative results to the current economic situation affecting customers.
Despite the challenges, Lawrence expressed confidence in the company’s leadership and positive results from its new stores and omnichannel business. He emphasized the importance of strategic investments aimed at long-term growth.
Academy’s updated fiscal 2025 forecast calls for an earnings per share range of $6.05 to $7.05, below the analyst consensus of $6.82. Revenue for the period is expected to range from $6.07 billion to $6.35 billion, topping the consensus estimate of $6.24 billion.
CFO Carl Ford (NYSE:) noted $200 million in cash flow from operations during the quarter, much of which was used for share repurchases and dividends. The Company’s Board of Directors declared a quarterly cash dividend of $0.11 per share, payable on July 18, 2024 to shareholders of record on June 20, 2024.
Looking ahead, Academy plans to open 15 to 17 new stores in 2024. Despite the current economic pressures, the company remains focused on driving traffic, managing inventory to maintain profitability and controlling costs while investing in growth initiatives.
The negative market reaction to the earnings report and guidance reflects investor concerns about the company’s near-term performance and prospects. However, Academy leadership remains committed to its long-term goals and strategies to overcome economic obstacles.
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