Why Academy Sports + Outdoors is Struggling in Today’s Market: Sales Dip Amid Economic Challenges

Bill McColl brings over 25 years of expertise as a senior producer and writer for TV, radio, and digital platforms, leading teams in delivering impactful news coverage on major events.

Key Insights

• Academy Sports + Outdoors experienced a 2.2% drop in Q2 revenue, impacted by a difficult economic climate.
• The company has lowered its annual revenue forecast amid ongoing market pressures.
• CFO Carl Ford described quarterly sales as "more challenging than anticipated."
• Despite sales declines, adjusted earnings per share surpassed expectations, boosting stock performance during trading.

Shares of Academy Sports + Outdoors (ASO) climbed during intraday trading after the retailer exceeded adjusted profit predictions for the second quarter, even as it reported reduced sales and trimmed its outlook in response to a tough economic environment.

Quarterly revenue totaled $1.55 billion, down 2.2% year-over-year and below the $1.58 billion analyst consensus from Visible Alpha. Same-store sales fell 6.9%, missing estimates. However, adjusted EPS reached $2.03, outperforming forecasts.

CEO Emphasizes Expansion and Innovation

CEO Steve Lawrence highlighted the company’s growth strategy, noting the addition of nine new stores this quarter along with enhancements to its omni-channel services and the rollout of an expanded loyalty program.

CFO Carl Ford acknowledged the difficulties faced, citing a tough economic backdrop, temporary delays due to a new warehouse management system rollout, and an active storm season affecting key regions.

Given the first-half results and outlook for 2024, Academy Sports + Outdoors has revised its full-year revenue guidance to between $5.895 billion and $6.075 billion, down from the prior range of $6.07 billion to $6.35 billion. The company now anticipates same-store sales to decline up to 6.0%, compared to the earlier forecast of a 4.0% drop.

Despite these challenges, ASO shares rose over 2.5% to $54.00 during late-morning trading but have declined approximately 18% year-to-date.

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