KATY, Texas - Academy Sports and Outdoors, Inc. (NASDAQ: ASO) reported a decline in fourth-quarter comparable sales by 3.6% and a diluted adjusted EPS of $2.21, which fell short of analyst expectations by $0.07.
Despite a 2.8% increase in net sales to $1.79 billion, matching consensus estimates, the company's stock plummeted 12.28% in premarket trading, indicating investor concerns over the earnings miss and future guidance that lagged behind analyst projections.
For the fiscal year 2025, Academy Sports forecasts an EPS range of $5.90 to $6.90, below the analyst consensus of $7.51. The company also anticipates revenues between $6.07 billion and $6.35 billion, which is short of the expected $6.38 billion. The midpoint of the guidance for EPS and revenue indicates a downward revision from the consensus, with the EPS midpoint at $6.40, 14.8% lower than the consensus, and the revenue midpoint at $6.21 billion, 2.7% below the consensus.
Chief Executive Officer Steve Lawrence expressed pride in the company's progress and resilience amid a challenging macroeconomic environment. He remains optimistic about the long-term growth potential, citing the company's position as a value leader and its scalable and transportable business model. The company's commitment to its long-range plan goals was echoed by Executive Vice President and Chief Financial Officer Carl Ford (NYSE:F), who highlighted the structural changes made to improve margins.
Despite the challenges faced in 2023, the company reported a 6.7% increase in net income to $168.2 million and a 12.2% growth in diluted GAAP EPS over the last year. The company also opened seven new stores in the fourth quarter, totaling 14 new stores in 2023, and increased its quarterly dividend by 22%.
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