Academy(ASO)

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10 Under-the-Radar Consumer Goods Stocks With Incredible Growth Potential
The Motley Fool· 2025-06-21 14:15
Core Insights - Investors are increasingly focusing on artificial intelligence (AI) as a significant opportunity for growth, similar to past successes with companies like Amazon and Nvidia [1] Group 1: Company Summaries - **The Honest Company**: Specializes in personal and baby care products with clean ingredients, reported $97 million in revenue for Q1 2025, a 13% year-over-year increase, and is positioned for profitable growth [4] - **Stride**: A technology-based learning company with an 18% year-over-year revenue increase to $613 million in Q3 fiscal 2025, and profits of $99 million, with analysts predicting a 14% rise in stock price [6] - **Revolve Group**: An online fashion retailer utilizing AI, reported a 10% year-over-year sales increase and a 5% rise in net income, with mixed analyst opinions on stock price targets [8][9] - **Nomad**: A European frozen foods company with a 6% compound annual growth rate over the past decade, despite a recent sales decrease, all analysts rate it a buy with a target price 40% higher than current levels [10] - **Driven Brands**: Offers automotive services, reported a 7% sales increase in Q1, and plans to open 200 new stores in 2025, with a 30% average price target increase anticipated [11] - **Oddity Tech**: A cosmetics and skincare company using AI, reported a 27% revenue increase in Q1, but is seen as potentially expensive in the short term [12] - **Urban Outfitters**: Experienced an 11% revenue increase in Q1 fiscal 2026, with earnings per share nearly doubling, and all analysts expect further stock price increases [13] - **Shake Shack**: Reported a 10.5% sales increase in Q1 and more than doubled net income, with a positive long-term outlook despite a recent stock price surge [14] - **Academy Sports**: A sporting goods retailer facing short-term pressure but has long-term growth potential through new store openings and digital expansion, with a 20% average price target increase [16] - **Chef's Warehouse**: A specialty foods distributor with a 9% revenue increase in Q1 and earnings per share rising from $0.05 to $0.25, all analysts predict an 8% to 20% stock price increase [17][18]
Academy Sports and Outdoors Has Underappreciated Cash Flow Potential
Seeking Alpha· 2025-06-14 11:52
Core Insights - The article emphasizes the importance of thorough research and understanding of businesses before making investment decisions [1][2][3] Group 1: Company Insights - The author has a beneficial long position in ASO shares, indicating confidence in the company's future performance [2] - The focus is on identifying and developing deep knowledge of great businesses, which suggests a strategic approach to investment [1] Group 2: Industry Insights - The article highlights the role of individual investors in the stock market and the need for education in investing [1] - It mentions that past performance is not indicative of future results, which is a common consideration in investment analysis [3]
Academy Sports and Outdoors: Staying Neutral Until There Is More Near-Term Outlook Clarity
Seeking Alpha· 2025-06-12 07:14
Core Viewpoint - Academy Sports and Outdoors, Inc. (NASDAQ: ASO) is given a hold rating due to concerns about the near-term outlook despite positive execution in store expansion, premium brand partnerships, and traction with higher-income customers [1] Group 1: Company Performance - The company shows encouraging execution on store expansion and premium brand partnerships [1] - There is a noted increase in traction with higher-income customers [1] Group 2: Market Challenges - Weakness is observed among core lower-income consumers, which poses a risk to the company's performance [1] - Inventory risks and macroeconomic uncertainties are highlighted as significant concerns for the company [1]
Academy Sports: Expansion Efforts Gain Momentum
Seeking Alpha· 2025-06-12 03:30
Over fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know!Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own ...
Academy Sports Sees Execution Strength And Nike Momentum, But Analyst Warns Of Prolonged Demand Weakness
Benzinga· 2025-06-11 18:17
Truist Securities analyst Joseph Civello reiterated the Hold rating on Academy Sports and Outdoors, Inc. ASO, raising the price forecast from $45 to $47.The Hold rating reflects a conflict between the company’s successful business transformation and the persistent macroeconomic pressures on its key middle-income demographic.While the analyst praised the operational improvements since 2019, he remained cautious that the challenging economic climate will continue to suppress consumer demand longer than broadl ...
Academy(ASO) - 2026 Q1 - Quarterly Report
2025-06-10 20:02
Sales Performance - For the first quarter of 2025, the company reported a comparable sales decrease of 3.7%, an improvement from a 5.7% decline in the same quarter of 2024[83] - Net sales decreased by $12.8 million, or 0.9%, in Q1 2025 compared to Q1 2024, primarily due to decreased comparable sales[98] - Comparable sales decreased by 3.7%, driven by a 5.2% decrease in comparable transactions, partially offset by a 1.5% increase in average ticket[100] Store Operations - The company operated 303 stores as of May 3, 2025, an increase from 284 stores at the end of the prior year quarter, with 5 new stores opened during the current quarter[78] - The company opened 5 new stores in Q1 2025, contributing $45.3 million to net sales, with a total of 19 new stores opened since Q1 2024[99] - The average store size is approximately 70,000 gross square feet, with locations primarily in the southern United States[77] Financial Performance - Adjusted EBITDA for the thirteen weeks ended May 3, 2025, was $109,764, compared to $142,578 for the same period in 2024, reflecting a decrease of approximately 23%[112] - Adjusted Net Income for the thirteen weeks ended May 3, 2025, was $51,597, down from $81,620 in the prior year, representing a decline of about 37%[114] - Adjusted Earnings per Share (EPS) for the first quarter of 2025 was $0.76 (diluted), compared to $1.08 in the same quarter of 2024, a decrease of approximately 30%[114] Cost and Expenses - Selling, general and administrative (SG&A) expenses rose by $36.2 million, or 10.2%, to $389.6 million in Q1 2025, primarily due to strategic investments in new stores and technology[103] - SG&A expenses as a percentage of sales increased from 25.9% in Q1 2024 to 28.8% in Q1 2025[95] - Interest expense decreased by $0.4 million, or 4.7%, in Q1 2025 compared to Q1 2024, primarily due to lower interest rates[105] Cash Flow and Capital Expenditures - Net cash provided by operating activities for the thirteen weeks ended May 3, 2025, was $157,472, down from $199,677 in the prior year, indicating a decline of about 21%[116] - Capital expenditures for the thirteen weeks ended May 3, 2025, totaled $50,830,000, an increase of 57.5% compared to $32,227,000 for the same period in 2024[129] - Cash used in investing activities rose by $18.6 million, from $32,355,000 in Q1 2024 to $50,988,000 in Q1 2025, primarily due to increased spending on corporate and IT programs[132] Supply Chain and Product Strategy - The product assortment for the first quarter of 2025 included outdoor (28%), sports (26%), recreation (24%), and apparel (22%) categories, reflecting a diverse range of offerings[75] - The company reduced its cost exposure to products imported from China to approximately 9% of total cost of goods sold for its private label business, aiming to diversify its global supply chain[79] - The company emphasizes a localized merchandising strategy to connect with a broad range of consumers, tailoring offerings to regional preferences[75] Shareholder Returns and Debt - The company approved a new share repurchase program allowing for the purchase of up to $700 million of its outstanding shares, with $536.5 million remaining for repurchases as of May 3, 2025[125] - The company declared a quarterly cash dividend of $0.13 per share for the fiscal quarter ended May 3, 2025, totaling $8,716 paid on March 25, 2025[128] - The company has a total long-term debt obligation of $103,994 for 2025, with significant payments due in 2027 amounting to $424,000[118] Economic and Market Conditions - The company monitors macroeconomic trends, including inflation and tariffs, which could impact consumer spending and sales growth[79] - The company is focused on enhancing its omnichannel capabilities, integrating e-commerce with physical stores to drive operational efficiencies[77] - E-commerce net sales represented 10.0% of merchandise sales in Q1 2025, up from 9.0% in Q1 2024[101]
Academy(ASO) - 2026 Q1 - Earnings Call Presentation
2025-06-10 16:09
Q1 2025 Investor Update June 2025 Safe Harbor/Forward Looking Statements This presentation by Academy Sports and Outdoors, Inc. (the "Company") contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on Academy's current expectations and are not guarantees of future performance. Forward-looking statements may incorporate words such as "believ ...
Academy Sports and Outdoors, Inc. (ASO) Lags Q1 Earnings and Revenue Estimates
ZACKS· 2025-06-10 15:36
分组1 - Academy Sports and Outdoors, Inc. reported quarterly earnings of $0.76 per share, missing the Zacks Consensus Estimate of $0.91 per share, and down from $1.08 per share a year ago, representing an earnings surprise of -16.48% [1] - The company posted revenues of $1.35 billion for the quarter ended April 2025, missing the Zacks Consensus Estimate by 1.37%, and compared to year-ago revenues of $1.36 billion [2] - The stock has underperformed the market, losing about 22.9% since the beginning of the year, while the S&P 500 gained 2.1% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $2.14 on revenues of $1.63 billion, and for the current fiscal year, it is $6 on revenues of $6.15 billion [7] - The Leisure and Recreation Products industry, to which Academy Sports and Outdoors belongs, is currently in the bottom 22% of the Zacks Industry Rank, indicating potential underperformance compared to higher-ranked industries [8] - The estimate revisions trend for Academy Sports and Outdoors is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, suggesting expected underperformance in the near future [6]
Academy(ASO) - 2026 Q1 - Earnings Call Transcript
2025-06-10 15:02
Financial Data and Key Metrics Changes - Net sales for Q1 fiscal 2025 were $1,350 million, down 0.9% year-over-year, resulting in a negative 3.7% comparable sales (comp) [13][26] - Operating income was $69.3 million, with diluted EPS at $0.68 and adjusted EPS at $0.76 [30] - Gross margin improved to 34%, a 60 basis point increase from the previous year, driven by merchandise margin expansion and favorable shrink [28][29] Business Line Data and Key Metrics Changes - Footwear and apparel were the strongest categories, remaining roughly flat year-over-year, while sports and recreation also showed improvement [14][26] - Athletic footwear posted a positive 4.5% comp, led by brands like Nike and Brooks, while the Jordan brand exceeded internal expectations [27][19] - Outdoor category faced challenges, particularly in ammunition sales, but fishing and firearms showed solid increases [14][28] Market Data and Key Metrics Changes - The company observed increased foot traffic from customers with household incomes over $100,000, indicating a shift towards value-seeking behavior among higher-income consumers [12][37] - E-commerce sales increased by 10% for the quarter, with penetration growing to over 10% [17][26] Company Strategy and Development Direction - The company is focused on new store expansion, planning to open 20 to 25 new stores in fiscal 2025, with five locations opened in Q1 [15][16] - E-commerce growth is a key pillar, with efforts to enhance the online shopping experience and expand product offerings [17][18] - The company is leveraging technology, including RFID and handheld devices, to improve inventory accuracy and customer experience [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about navigating tariff impacts and consumer behavior, emphasizing the importance of value in a challenging economic environment [7][25] - The company is adjusting its guidance to account for various tariff scenarios, with sales expectations ranging from $5.97 billion to $6.26 billion [35][36] - Management noted the fragility of the U.S. consumer environment but remains confident in long-term growth strategies [24][25] Other Important Information - The company returned over $100 million of free cash flow to investors in Q1, including share repurchases and dividends [34] - Strategic actions taken to mitigate tariff impacts included pulling forward $85 million in domestic inventory receipts at pre-tariff prices [31][32] Q&A Session Summary Question: Retention of higher-income consumers - Management noted that retention among higher-income consumers has been strong, with these customers shopping more frequently across various product categories [41][42] Question: Performance in May and impact of Jordan brand - Management indicated that while May showed a slight decline, the Jordan brand continues to perform well, and they remain optimistic about Q2 due to upcoming shopping events [45][46] Question: Health of the consumer and impact of weather - Management attributed softness in certain categories to weather conditions and noted that consumer behavior is cautious, with a focus on value [52][53] Question: Tariff outlook for fiscal 2026 - Management emphasized the importance of diversifying sourcing to mitigate future tariff impacts, but refrained from speculating on specific outcomes [80][81] Question: Gross margin guidance - Management explained that gross margin guidance remains unchanged due to effective inventory management and partnerships with suppliers to mitigate cost increases [56][63]
Academy(ASO) - 2026 Q1 - Earnings Call Transcript
2025-06-10 15:00
Financial Data and Key Metrics Changes - Net sales for Q1 2025 were $1,350 million, down 0.9% year-over-year, resulting in a negative 3.7% comparable sales (comp) [11][25] - Operating income was $69.3 million, with diluted EPS at $0.68 and adjusted EPS at $0.76 [30] - Gross margin improved to 34%, a 60 basis point increase from the previous year, driven by merchandise margin expansion [28][29] Business Line Data and Key Metrics Changes - Footwear and apparel were the strongest categories, with athletic footwear posting a positive 4.5% comp, driven by brands like Nike and Brooks [26][27] - Outdoor category saw low single-digit declines primarily due to softer sales in ammunition, while fishing and firearms performed well [12][28] - E-commerce channel experienced a positive 10% comp for the quarter, with significant contributions from the Jordan brand [25][16] Market Data and Key Metrics Changes - Increased foot traffic from customers with household incomes over $100,000, indicating a shift towards value-seeking behavior [10][37] - The company noted a sequential improvement in sales throughout the quarter, with April finishing positively after a slow February [11][44] Company Strategy and Development Direction - The company is focused on reducing exposure to products made in China, aiming to decrease this from 9% to approximately 6% by year-end [8][10] - New store expansion remains a key growth engine, with plans to open 20 to 25 new stores in 2025 [14][15] - The company is leveraging technology, including RFID and handheld devices, to improve inventory accuracy and customer experience [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about navigating the current tariff environment while maintaining value for customers [5][24] - The company anticipates continued pressure on consumer spending due to inflation but believes its value proposition will attract more customers [24][108] - Guidance for 2025 was updated to reflect a range of sales outcomes based on potential tariff scenarios, with expected sales between $5.97 billion and $6.26 billion [35][36] Other Important Information - The company returned over $100 million of free cash flow to investors in Q1, including share repurchases and dividends [33] - Strategic investments in digital and supply chain technologies are expected to normalize SG&A expenses as the year progresses [30][32] Q&A Session Summary Question: Retention of higher-income consumers - Management noted that higher-income consumers are shopping more frequently and are retaining their loyalty, shopping across various product categories [40][41] Question: Performance in May and comp trends - May showed a slight decline in sales, but management remains optimistic about Q2 due to upcoming shopping events like Father's Day [44][45] Question: Impact of weather and consumer health - Management indicated that weather had a significant impact on sales, particularly in basketball and golf, and noted that consumers are cautious in their spending [94][50] Question: Tariff outlook for FY26 - Management emphasized the importance of diversifying sourcing to mitigate future tariff impacts, but specifics on the tariff situation remain uncertain [79][80] Question: Gross margin guidance - Management explained that gross margin guidance remains unchanged due to strategic inventory management and partnerships with suppliers to mitigate cost increases [54][56]