Core Investment Criteria - An ideal investment operates in a sector expected to experience structural growth exceeding GDP growth over the next 5-10 years [1] - It benefits from sustainable competitive advantages that lead to attractive unit economics [1] - The investment should be managed by competent, ethical, and long-term thinkers [1] - A fair valuation is essential for the investment [1]

Academy Sports and Outdoors, Inc. (ASO) reported fourth-quarter fiscal 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines declined on a year-over-year basis.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.ASO’s Q4 Earnings & RevenuesIn the fiscal fourth quarter, the company reported adjusted earnings per share (EPS) of $1.96, beating the Zacks Consensus Estimate of $1.82. In the prior-year quarter, ASO reported an adjusted EPS of ...

Core Viewpoint - JPMorgan analyst Christopher Horvers maintains a Neutral rating on Academy Sports and Outdoors, Inc. (ASO), raising the price target to $54 from $52, despite mixed quarterly results [1][4]. Financial Performance - Academy Sports reported fourth-quarter adjusted earnings per share of $1.96, exceeding the street estimate of $1.83 [1]. - Quarterly sales reached $1.676 billion, reflecting a 6.6% year-over-year decline, slightly missing the analyst consensus estimate of $1.677 billion [1]. Strategic Initiatives - The company is improving new store site selection for the second half of 2024, addressing previous underperformance in unit growth that began in 2022 [2]. - IT enhancements and plans are expected to boost the performance of existing stores [3]. - Academy Sports is expanding its Nike product assortment to 145 of its 300+ locations and its website, starting in April, to better compete with Dick's Sporting Goods [3]. Market Challenges - The macroeconomic environment poses challenges for Academy Sports, particularly due to its higher exposure to lower-income consumers compared to competitors like Dick's Sporting Goods [4]. - Despite an attractive valuation, there is uncertainty regarding the company's growth potential under current market conditions, with projected 1Q/FY25 comparable sales of -3.5% and flat, respectively [4]. Stock Performance - ASO shares are trading higher by 1.14% to $47.96 as of the last check on Friday [5].

Core Insights - Academy Sports and Outdoors, Inc. (ASO) reported a revenue of $1.68 billion for the quarter ended January 2025, reflecting a year-over-year decline of 6.6% and an EPS of $1.96 compared to $2.21 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $1.67 billion by 0.60%, while the EPS surpassed the consensus estimate of $1.82 by 7.69% [1] Financial Performance Metrics - Comparable Sales Growth was -3%, better than the average estimate of -4.6% from seven analysts [4] - Total Merchandise Sales were reported at $1.66 billion, slightly below the average estimate of $1.68 billion, marking a year-over-year decline of 6.8% [4] - Net Sales in the Merchandise Division for Outdoors reached $541.74 million, exceeding the estimate of $443.89 million, representing a year-over-year increase of 16.4% [4] - Net Sales for Sports and Recreation were $328.07 million, significantly lower than the average estimate of $411.54 million, indicating a year-over-year decline of 27.5% [4] - Net Sales for Footwear were $297.58 million, slightly below the estimate of $301.07 million, reflecting a year-over-year decrease of 7.8% [4] - Net Sales for Apparel were reported at $497.45 million, under the average estimate of $525.95 million, showing a year-over-year decline of 8.8% [4] - Other Sales amounted to $12.09 million, surpassing the average estimate of -$11.35 million, with a year-over-year change of 26.7% [4] Stock Performance - Shares of Academy Sports and Outdoors have returned -7.6% over the past month, compared to a -7.5% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Academy Sports and Outdoors, Inc. (NASDAQ:ASO) Q4 2024 Earnings Conference Call March 20, 2025 10:00 AM ET Company Participants Dan Aldridge - Vice President, Investor Relations Steve Lawrence - Chief Executive Officer Carl Ford - Chief Financial Officer Conference Call Participants Anthony Chukumba - Loop Capital Christopher Horvers - JPMorgan Brian Nagel - Oppenheimer Kate McShane - Goldman Sachs Greg Melich - Evercore Michael Lasser - UBS Simeon Gutman - Morgan Stanley Operator Good morning, and welcome ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended February 1, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________. Commission File No. 001-39589 Academy Sports and Outdoors, Inc. (Exact name of registrant as specified in its charter) (State or other j ...

Financial Data and Key Metrics Changes - Net sales for Q4 2024 were $1,680,000,000, representing a 6.6% decline compared to the previous year, primarily due to a comparison against a 53-week fiscal year [7][36] - Comparable sales decreased by 3%, with a sequential improvement from Q3 and the first half of the year [8][36] - Gross margin for Q4 was 32.2%, down 110 basis points from the previous year, driven by higher freight and distribution costs [13][37] - Net income for Q4 was $133,600,000, with diluted earnings per share of $1.89 [36] Business Line Data and Key Metrics Changes - The outdoor category was the best performer, with total net sales growth of 2% [11] - The mineral category saw a 1% decline in net sales, rebounding during the holiday season due to strong youth apparel sales [12] - Sports and Recreation net sales improved, finishing down 1% compared to the previous year [12] - Footwear net sales were down 2%, with strong performances from brands like ASICS and New Balance [13] Market Data and Key Metrics Changes - The company gained approximately 40 basis points of store traffic share among households earning over $100,000 annually in December [40] - Traffic growth accelerated by 700 basis points in December compared to October, indicating a positive response to value offerings [40] Company Strategy and Development Direction - The company plans to open 20 to 25 new stores in 2025, having already opened three in Pennsylvania and Maryland [20] - A focus on enhancing the e-commerce experience and expanding fulfillment options is part of the growth strategy [23] - The introduction of the Jordan brand in 145 stores is expected to significantly impact sales and brand presence [26][80] - The company aims to maintain its position as a value leader, especially for lower to middle-income consumers [28] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious consumer environment, with expectations of continued softness in the lower-income demographic [60] - The company anticipates Q1 to be the most challenging quarter, with Q2 expected to show stronger performance due to new initiatives [49][60] - Management expressed optimism about the impact of new store openings and brand launches on future growth [51] Other Important Information - The company generated $528,000,000 in cash from operations in 2024 and returned over $396,000,000 to shareholders through dividends and share repurchases [42][43] - An 18% increase in dividends was approved, resulting in $0.13 per share payable in April 2025 [44] Q&A Session Summary Question: What are the expected drivers of gross margin expansion in 2025? - Management indicated that recapturing supply chain headwinds and a higher penetration of soft lines, supported by Jordan and Nike, are expected to drive gross margin expansion [54][55] Question: How does the company view the impact of weather versus consumer uncertainty? - Management acknowledged a softening in business due to weather but noted a rebound as temperatures warmed, indicating a cautious but stabilizing consumer environment [60][61] Question: What is the expected contribution of new stores to comps in 2025? - Management expects new stores to contribute positively to comps, with a significant number of stores from previous vintages entering the comp base [66] Question: Can you provide more details on the Jordan brand launch? - The Jordan brand will be launched in 145 stores and online, marking the first time Academy will sell Jordan products, with a focus on sport-related items [78][80] Question: What is the company's strategy regarding tariffs and pricing? - Management emphasized a diversified sourcing base to mitigate tariff impacts and a commitment to maintaining competitive pricing on key items [86][87]

分组1 - Academy Sports and Outdoors, Inc. reported quarterly earnings of $1.96 per share, exceeding the Zacks Consensus Estimate of $1.82 per share, but down from $2.21 per share a year ago, representing an earnings surprise of 7.69% [1] - The company posted revenues of $1.68 billion for the quarter ended January 2025, surpassing the Zacks Consensus Estimate by 0.60%, but down from $1.79 billion year-over-year [2] - Over the last four quarters, the company has only surpassed consensus EPS estimates once and has topped consensus revenue estimates just once [2] 分组2 - The stock has underperformed the market, losing about 17.3% since the beginning of the year compared to the S&P 500's decline of -3.5% [3] - The current consensus EPS estimate for the coming quarter is $1.20 on revenues of $1.4 billion, and for the current fiscal year, it is $6.59 on revenues of $6.25 billion [7] - The Zacks Industry Rank for Leisure and Recreation Products is currently in the bottom 38% of over 250 Zacks industries, indicating potential challenges for the sector [8]

Financial Data and Key Metrics Changes - Net sales for Q4 2024 were $1,680 million, representing a 6.6% decline compared to the previous year, primarily due to a comparison against a 53-week fiscal year [7][36] - Comparable sales decreased by 3%, with a sequential improvement from Q3 and the first half of the year [8][36] - Gross margin for Q4 was 32.2%, down 110 basis points year-over-year, influenced by higher freight and distribution costs [13][37] - Net income for Q4 was $133.6 million, with diluted earnings per share of $1.89, while adjusted net income was $139 million or $1.96 per share [36][48] Business Line Data and Key Metrics Changes - The outdoor category was the best performer, with net sales growth of 2%, driven by hunting, fishing, and camping products [11] - The footwear business saw a 2% decline in net sales, with strong performances from brands like ASICS and New Balance [13] - Private brands accounted for approximately 23% of total net sales, up from 22% in the previous fiscal year [18] Market Data and Key Metrics Changes - The company gained approximately 40 basis points of store traffic share among households earning over $100,000 annually in December, indicating a shift in consumer behavior towards value [40][93] - Traffic growth accelerated by 700 basis points in December compared to October, reflecting a positive response to the company's value proposition [40] Company Strategy and Development Direction - The company plans to open 20 to 25 new stores in 2025, having already opened three in Pennsylvania and Maryland [20] - A significant focus will be on enhancing the e-commerce experience, including improvements in site navigation and fulfillment options [23][24] - The introduction of the Jordan brand in 145 stores is expected to be a major growth driver, with plans to expand Nike assortments as well [26][80] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2025, anticipating challenges in Q1 but expecting Q2 to be the strongest quarter due to new initiatives [49][60] - The company is adapting to macroeconomic pressures and consumer behavior changes, focusing on value offerings to attract a broader customer base [28][60] Other Important Information - The company generated $528 million in cash from operations in 2024 and returned over $396 million to shareholders through dividends and share repurchases [42][43] - An 18% increase in dividends was approved, resulting in a payout of $0.13 per share [44] Q&A Session Summary Question: What are the expected drivers of gross margin expansion in 2025? - Management indicated that recapturing supply chain headwinds and a higher penetration of soft lines, supported by Jordan and Nike, are expected to drive margin expansion [54][55] Question: How does the company view the impact of weather versus consumer uncertainty? - Management noted that while weather has impacted sales, they are optimistic about trends improving as the year progresses, particularly with new initiatives [60][62] Question: What is the expected contribution of new stores to comps in 2025? - Management expects new stores to contribute positively to comps, with a significant number of stores from previous vintages entering the comp base [66] Question: Can you provide more details on the Jordan brand launch? - The Jordan brand will be launched in 145 stores and online, marking the first time Academy will sell this brand, with a focus on sport products [78][80] Question: What is the company's strategy regarding tariffs and sourcing? - The company has diversified its sourcing base to mitigate tariff impacts and is focused on maintaining value for customers despite potential cost increases [86][87]

Financial Performance - Fourth quarter comparable sales declined by 3.0%, showing a 190 basis point improvement compared to the third quarter of 2024[1] - Fourth quarter diluted GAAP EPS was $1.89, above the midpoint of updated guidance provided[1] - Net sales for the fourth quarter were $1,676.9 million, a decrease of 6.6% from $1,794.8 million in the same quarter last year[2] - Fiscal 2024 net sales totaled $5,933.4 million, down 3.7% from $6,159.3 million in fiscal 2023[3] - Net sales for the fiscal quarter ended February 1, 2025, were $1,676,920, a decrease of 6.6% compared to $1,794,828 for the same period in 2024[28] - For the fiscal year ended February 1, 2025, net sales were $5,933,450, down 3.7% from $6,159,291 in 2024[30] - Net income for the fiscal quarter was $133,631, a decrease of 20.6% from $168,167 in the same quarter last year[28] - Net income for the fiscal year ended February 1, 2025, was $418.447 million, a decrease of 19.4% from $519.190 million for the fiscal year ended February 3, 2024[34] - Adjusted EBITDA for the fiscal year ended February 1, 2025, was $720.246 million, down 15.0% from $846.045 million for the fiscal year ended February 3, 2024[36] - Adjusted Net Income for the fiscal year ended February 1, 2025, was $439.487 million, compared to $539.471 million for the fiscal year ended February 3, 2024, reflecting a decrease of 18.5%[40] - Adjusted Earnings Per Common Share, Diluted, for the fiscal year ended February 1, 2025, was $6.02, down from $6.96 for the fiscal year ended February 3, 2024[40] Future Outlook - The company plans to open 20-25 new stores in 2025, following the opening of 16 new stores in 2024[8] - For fiscal 2025, the company expects net sales between $6,090 million and $6,265 million, representing a 4.2% increase compared to fiscal 2024[16] - The company anticipates a gross margin rate improvement to between 34.0% and 34.5% in fiscal 2025, up from 33.9% in fiscal 2024[16] - Adjusted net income for fiscal 2025 is projected to be between $400 million and $435 million, a decrease of 4.9% compared to fiscal 2024[16] - The company anticipates future growth through the opening of new stores and expansion into new markets, although actual results may vary due to various risks and uncertainties[25] - The company expects Adjusted Net Income for the fiscal year ending January 31, 2026, to be in the range of $400.0 million to $435.0 million[42] Dividend and Shareholder Returns - The quarterly dividend was increased by 18% per share, now at $0.13, payable on April 17, 2025[7] - The company repurchased $364.912 million of common stock for retirement during the fiscal year ended February 1, 2025, compared to $202.796 million in the previous fiscal year[34] Operational Metrics - Gross margin for the fiscal quarter was 32.2%, down from 33.3% in the previous year[28] - Operating income for the fiscal quarter was $154,696, representing 9.2% of sales, compared to $203,965 or 11.4% of sales in the prior year[28] - The company reported a gross margin of 33.9% for the fiscal year, compared to 34.3% in the previous year[30] - Operating income for the fiscal year was $538,639, which is 9.1% of sales, down from 11.0% in the prior year[30] Cash Flow and Capital Expenditures - Net cash provided by operating activities for the fiscal year ended February 1, 2025, was $528.082 million, slightly lower than $535.779 million for the fiscal year ended February 3, 2024[34] - Adjusted Free Cash Flow for the fiscal year ended February 1, 2025, was $341.962 million, compared to $329.640 million for the fiscal year ended February 3, 2024, indicating an increase of 3.9%[44] - Capital expenditures for the fiscal year ended February 1, 2025, were $199.589 million, a decrease from $207.770 million for the fiscal year ended February 3, 2024[34] Assets and Liabilities - The company’s total assets increased to $4,900,963 as of February 1, 2025, compared to $4,676,713 a year earlier[31] - Current liabilities rose to $960,881 from $879,858 in the previous year[31] Other Income - The company reported a $15.0 million gain from a litigation settlement and a $7.1 million gain on a sale-leaseback transaction during the fiscal year ended February 1, 2025[40]