Core Insights - Academy Sports and Outdoors (ASO) shares have shown modest performance over the past year, with a gain of approximately 5% [1] - The company reported stronger Q3 earnings results, which positively impacted investor sentiment [1] Company Performance - ASO's Q3 earnings results were stronger than expected, contributing to a positive outlook for the company [1] Market Reaction - The announcement of the Q3 earnings results led to a favorable response from investors, indicating confidence in the company's future performance [1]

Core Viewpoint - The article discusses the author's investment philosophy, which incorporates various strategies including fundamental, technical, and momentum investing, emphasizing the importance of a diversified approach to capital management [1]. Group 1: Investment Philosophy - The author believes in the merits of different investment approaches, such as fundamental investing, technical investing, and momentum investing [1]. - The investment process has been refined over the years by leveraging the positive aspects of each approach [1]. Group 2: Purpose of Writing - The article serves as a platform for tracking the performance of the author's investment ideas and connecting with like-minded investors [1].

Core Viewpoint - Academy Sports and Outdoors, Inc. (ASO) is a notable retailer in the sporting goods and outdoor recreational products sector, facing challenges but showing signs of improvement in sales and profitability [1][3][6]. Company Performance - ASO has experienced subdued comparable growth in the third quarter, which is a trend across the retail industry, but its performance has been weaker than competitors [3]. - The company has returned to positive earnings growth, driven by strong gains in gross margins, indicating effective cost management and increased profitability [4][6]. - The current stock price of ASO is $54.02, reflecting a 1.78% increase, with a daily rise of $0.95 [4]. Stock Information - ASO's stock has shown volatility, trading between $52.82 and $54.36 today, with a yearly high of $61.25 and a low of $33.34 [5]. - The market capitalization of ASO is approximately $3.6 billion, and the trading volume is 411,174 shares, highlighting its significance in the retail market [5][6]. Analyst Insights - Truist Financial has set a price target of $57 for ASO, suggesting a potential increase of about 5.15%, reflecting optimism about the company's future performance despite retail sector challenges [2][6].

Academy Sports and Outdoors, Inc (NASDAQ:ASO) reported mixed results for the third quarter on Tuesday.The company reported third-quarter adjusted earnings per share of $1.14, topping the analyst consensus estimate of $1.06. Quarterly sales of $1.384 billion (+3.0% year over year) missed the Street view of $1.403 billion.Academy Sports revised its fiscal 2025 adjusted EPS guidance to $5.65–$6.15 (compared to prior forecast of $5.60–$6.30), versus a $5.80 consensus estimate. It also lifted its fiscal 2025 sal ...

Academy Sports and Outdoors, Inc (NASDAQ:ASO) reported mixed results for the third quarter on Tuesday.The company reported third-quarter adjusted earnings per share of $1.14, topping the analyst consensus estimate of $1.06. Quarterly sales of $1.384 billion (+3.0% year over year) missed the Street view of $1.403 billion.Academy Sports revised its fiscal 2025 adjusted EPS guidance to $5.65–$6.15 (compared to prior forecast of $5.60–$6.30), versus a $5.80 consensus estimate. It also lifted its fiscal 2025 sal ...

Academy Sports and Outdoors, Inc. ( ASO ) reported the company’s fiscal Q3 results from the August-October period on the 9 th of December. The retailer’s comparable sales remained relatively weak, but the performance already showsI am an avid investor with a major focus on small cap companies with experience in investing in US, Canadian, and European markets. My investment philosophy to generating great returns on the stock market revolves around identifying mispriced securities by understanding the drivers ...

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. ...

Core Insights - Academy Sports and Outdoors, Inc. (ASO) reported revenue of $1.38 billion for the quarter ended October 2025, reflecting a 3% increase year-over-year, while EPS rose to $1.14 from $0.98 in the previous year [1] - The revenue fell short of the Zacks Consensus Estimate of $1.4 billion, resulting in a surprise of -1.2%, but the EPS exceeded expectations with a surprise of +6.54% against a consensus estimate of $1.07 [1] Financial Performance Metrics - Comparable Sales Growth was reported at -0.9%, slightly below the estimated -0.8% by analysts [4] - The number of stores at the end of the period was 317, surpassing the estimated 316 [4] - The company opened 11 new stores, exceeding the average estimate of 10 [4] - Net Sales in the Merchandise Division for Outdoors reached $445.14 million, exceeding the average estimate of $422.53 million, marking a year-over-year increase of +3.1% [4] - Net Sales for Sports and Recreation amounted to $288.74 million, above the estimated $286.63 million, with a year-over-year growth of +4.2% [4] - Other Sales were reported at $7.56 million, significantly lower than the average estimate of $35.74 million, but still showing a +2.2% year-over-year increase [4] - Footwear sales reached $292.44 million, slightly above the estimated $291.23 million, reflecting a +2.4% change year-over-year [4] - Total Merchandise Sales were $1.38 billion, slightly above the estimated $1.37 billion, with a year-over-year increase of +3% [4] - Apparel sales were reported at $349.81 million, below the estimated $365.51 million, but still showing a +2.4% year-over-year increase [4] Stock Performance - Academy Sports and Outdoors shares have returned +8.9% over the past month, outperforming the Zacks S&P 500 composite, which saw a +1.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Store Operations - As of November 1, 2025, the company operated 317 stores, an increase from 293 stores as of November 2, 2024, representing an 8.2% growth in store count[85]. - The company opened 11 new stores in the third quarter of 2025, contributing $48.6 million in net sales, with a total of 24 new stores opened since the end of the third quarter of 2024[107]. - 24 new stores opened since the end of Q3 2024, generating $110.3 million in net sales year-to-date 2025, with 58 new stores opened since 2022[116]. - The company expects new stores to be a key driver of growth in net sales and gross margin, with a focus on off-mall locations[97]. Sales Performance - Net sales for the 2025 third quarter were influenced by a product assortment focusing on outdoor, sports, recreation, apparel, and footwear, which accounted for 32%, 21%, 25%, and 22% of net sales respectively[82]. - The company reported an increase in comparable sales, which includes both in-store and e-commerce sales, reflecting positive consumer trends and effective inventory management[88]. - Net sales increased by $40.4 million, or 3.0%, in the third quarter of 2025 compared to the same period in 2024, driven by a 5.6% increase in the sports and recreation merchandise division[106]. - For the year-to-date 2025, net sales increased by $78.4 million, or 1.8%, compared to year-to-date 2024, with growth in all merchandise divisions[115]. E-commerce Performance - E-commerce sales are a significant component of the company's revenue, with all transactions through the website or mobile app counted towards comparable sales[89]. - E-commerce net sales represented 10.4% of merchandise sales in the third quarter of 2025, up from 8.8% in the prior year, with a 22.2% increase in e-commerce net sales year-over-year[108]. - E-commerce net sales increased by 16.1% year-to-date 2025, representing 10.5% of merchandise sales compared to 9.2% in year-to-date 2024[117]. Financial Metrics - Adjusted EBITDA and other non-GAAP metrics are used to evaluate business performance and inform strategic decisions[91]. - Gross margin increased by $36.7 million, or 8.0%, to $493.4 million in the third quarter of 2025, with gross margin as a percentage of net sales rising from 34.0% to 35.7%[109]. - Gross margin increased by $57.8 million, or 3.9%, to $1,529.0 million for year-to-date 2025, with a gross margin percentage increase of 70 basis points to 35.3%[118]. - Adjusted Net Income for the thirty-nine weeks ended November 1, 2025, was $260.2 million, down from $300.7 million for the same period in 2024[129]. Expenses - Selling, general and administrative (SG&A) expenses increased by $27.8 million, or 7.6%, to $393.0 million in the third quarter of 2025, primarily due to strategic investments in new stores and technology[109]. - SG&A expenses rose by $99.7 million, or 9.2%, to $1,187.0 million for year-to-date 2025, primarily due to strategic investments of $85.0 million[119]. Cash Flow and Capital Expenditures - Net cash provided by operating activities for the thirty-nine weeks ended November 1, 2025, was $285.066 million, a decrease of $102.8 million compared to the same period in 2024[143][144]. - Total capital expenditures for the thirty-nine weeks ended November 1, 2025, amounted to $170.154 million, an increase from $135.866 million in the same period of 2024[142]. - The company expects capital expenditures for fiscal 2025 to be between $180 million and $210 million, with 60% allocated to new stores[142]. Debt and Liquidity - As of November 1, 2025, the company's total long-term debt is $99.213 million for term loans and $460 million for notes, with a total of $8.386 million from the ABL Facility[133][135]. - The company has a minimum available borrowing capacity of $953.921 million as of November 1, 2025, with no outstanding borrowings on the ABL Facility[136]. - Interest expense remained relatively constant in the third quarter of 2025 compared to the same period in 2024[110]. - Interest expense decreased by $0.6 million, or 2.3%, for year-to-date 2025, attributed to lower interest rates and a reduced outstanding balance on the Term Loan[121]. Shareholder Returns - The company repurchased 2,080,772 shares at an average price of $47.59 per share, totaling $99.031 million in the first quarter of 2025[140]. - Quarterly dividends paid for the year-to-date 2025 totaled $26.028 million, with a dividend of $0.13 per share declared for the fiscal quarter ended November 1, 2025[141]. - The company had $536.5 million remaining for share repurchases under the 2024 Share Repurchase Program as of November 1, 2025[139].

Core Insights - Academy Sports and Outdoors, Inc. (ASO) is a prominent player in the Leisure and Recreation Products industry, focusing on delivering value through a wide range of sporting goods and outdoor equipment [1] Financial Performance - ASO reported an EPS of $1.14, exceeding the forecasted $1.07, marking a 6.54% earnings surprise and an improvement from the previous year's EPS of $0.98 [2][6] - Revenue reached $1.38 billion, slightly below the anticipated $1.41 billion by 1.2%, but still an increase from $1.34 billion the previous year [3][6] - Overall sales increased by 3%, although comparable sales saw a slight decline of 0.9% [3] - eCommerce sales experienced significant growth of 22.2%, indicating effective implementation of the company's digital strategy [3][6] Strategic Initiatives - ASO is expanding its footprint with the opening of eleven new stores across ten states, contributing to high single-digit growth [4] - The company had a strong start to the holiday season, highlighted by a record Black Friday event, reinforcing its market leadership and share gains [4] Valuation Metrics - ASO has a price-to-earnings (P/E) ratio of approximately 9, reflecting investor confidence [5] - The price-to-sales ratio is about 0.56, and the enterprise value to sales ratio is around 0.75, indicating the company's valuation relative to its sales [5] - The debt-to-equity ratio stands at approximately 0.65, and the current ratio is about 1.71, demonstrating a balanced financial structure [5]