KATY, Texas - Academy Sports and Outdoors, Inc. (NASDAQ: ASO) reported lower-than-expected earnings for the first quarter, with adjusted diluted earnings per share (EPS) of $1.08, falling short of the analyst consensus of $1.23.
The company's revenue also missed estimates, coming in at $1.36 billion against the expected $1.38 billion. The sporting goods and outdoor recreation retailer's stock price fell by 3.6% in response to the earnings miss and downward guidance revision for the fiscal year 2025.
In comparison to the previous year, Academy's net sales declined by 1.4%, and comparable sales saw a decrease of 5.7%. Chief Executive Officer Steve Lawrence attributed the pressured results to the current economic environment impacting customers.
Despite the challenges, Lawrence expressed confidence in the company's value leadership and the positive performance of new stores and omnichannel business. He emphasized strategic investments aimed at long-term growth.
Academy's updated guidance for fiscal 2025 anticipates an EPS range of $6.05 to $7.05, which is below the analyst consensus of $6.82. Revenue forecasts for the same period are expected to be between $6.07 billion and $6.35 billion, straddling the consensus estimate of $6.24 billion.
Chief Financial Officer Carl Ford (NYSE:F) highlighted the generation of $200 million in cash from operations during the quarter, with a significant portion allocated to share repurchases and dividends. The company's board declared a quarterly cash dividend of $0.11 per share, payable on July 18, 2024, to stockholders of record as of 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 margins, and controlling expenses while investing in growth initiatives.
The market's negative reaction to the earnings report and guidance update reflects investor concerns over the company's short-term performance and outlook. However, Academy's management remains committed to its long-range goals and strategies to navigate through economic headwinds.
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