My name is Daria Naumova. I'm a student studying a Bachelor of Arts in Economics and Management at the University of Westminster in London. During my first year, I realized I greatly enjoyed learning about and conducting financial analysis as well as the general process of equity research, leading me to do so in my free time. Writing for Seeking Alpha provides an opportunity to formalize my research and share my analyses with a broader audience. It also allows me to receive feedback on my ideas, which is va ...

Academy Sports and Outdoors, Inc. (ASO) is likely to benefit from expansion efforts, digital efforts and loyalty programs. Also, the focus on footwear and outdoor divisions bodes well. However, declining consumer demand and operational challenges pose concerns.Factors Driving ASO StockAcademy Sports focuses on expanding its footprint to drive growth. The company’s new store growth remains a primary sales driver, with its 2022 and 2023 vintages posting positive comps despite a challenging retail environment. ...

Here are three stocks added to the Zacks Rank #24 (Strong Sell) List today:Academy Sports and Outdoors, Inc. (ASO) operates as a sporting goods and outdoor recreational products retailer. The Zacks Consensus Estimate for its current year earnings has been 4.8% downward over the last 60 days.American Vanguard Corporation (AVD) is a specialty chemicals company. The Zacks Consensus Estimate for its current year earnings has been revised 177.3% downward over the last 60 days.CVS Health Corporation (CVS) is a pr ...

Investment Thesis - Academy Sports and Outdoors (ASO) has ambitious expansion plans, aiming to open 160-180 new stores over the next five years with a return on invested capital (ROIC) hurdle of at least 20% for each store, and targeting a 66% increase in annual sales [2] Q2 Earnings - ASO reported Q2 2024 net sales of $1.55 billion, a year-over-year decline of 2.2%, with comparable sales down 6.9%. GAAP diluted EPS was $1.95, and adjusted diluted EPS was $2.03, reflecting decreases of 3.0% and 2.9% respectively [3] - Year-to-date sales have declined by 2.9%, with comparable sales down 5.4%. Both GAAP and adjusted net income decreased by 9.2% [3] - Gross margin expanded by 50 basis points to 36.1%, attributed to improved inventory management and lower freight expenses. Full-year gross margin is now expected to be between 34.3% and 34.7% [3] Growth Ambitions - ASO opened two new stores in Q2, including its first in Georgia, and plans to open 15-17 stores in 2024. The long-term goal is to reach 800 stores, potentially generating $16 billion in revenue [6] - SG&A expenses increased by 4.6% year-over-year, primarily focused on growth initiatives, with 90% of spending increases directed towards growth [6] Growth Expectations Pulled Back - ASO has adjusted its new store sales contribution expectations from $18 million to a range of $12 to $16 million due to challenges in recent quarters [7] - The company is optimizing its new store growth strategy, focusing on lower opening costs while maintaining ROIC and aiming for positive EBITDA [7] - Management noted that stores opened in existing markets have outperformed those in new markets, indicating a need for a more strategic approach to store openings [7] Valuation - ASO has achieved a 21.6% compound annual growth rate (CAGR) in operating cash flow (OCF) and a 31.7% CAGR in free cash flow (FCF) since 2019 [8] - The stock appears undervalued based on free cash flow potential, with estimates suggesting it could be undervalued by as much as 57% [10] Conclusion - ASO stock is considered highly skewed toward the reward end of the risk-reward spectrum, with potential undervaluation of 57% based on a weighted DCF model [13] - The company is operating efficiently and continues to refine its expansion plans, with management confident in the performance of new stores and cost improvements [13]

Academy Sports and Outdoors, Inc. (ASO) reported second-quarter fiscal 2024 (ended Aug. 3) results, wherein adjusted earnings met the Zacks Consensus Estimate but net sales missed the same. The bottom and top lines declined on a year-over-year basis.The quarterly results reflect lower sales across the sports and recreation merchandise and the apparel merchandise divisions due to ongoing macroeconomic uncertainties and a decline in consumers’ discretionary spending. Also, a temporary reduction in outbound sh ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended August 3, 2024 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 o ...

Financial Data and Key Metrics Changes - Sales for Q2 2024 were $1.55 billion, down 2.2% year-over-year, translating to a negative 6.9% comparable sales on a shifted basis [5][23] - Gross margin rate was 36.1%, a 50 basis point increase compared to the previous year, driven by inventory cost management and lower freight expenses [16][25] - Net income for the quarter was $142.6 million, with diluted earnings per share of $1.95, and adjusted net income of $148.6 million or $2.03 in adjusted earnings per share [25][27] Business Line Data and Key Metrics Changes - Footwear sales increased by 1%, driven by strong performance in kids and athletic footwear, while the outdoor division also saw a 1% increase [11][12] - Apparel sales decreased by 2%, with strong results in the kids segment but underperformance in licensed team sports [12][13] - Sports and recreation division faced a 7% decline, with challenges in big-ticket items like pools and fitness equipment [13][14] Market Data and Key Metrics Changes - Year-to-date sales through August were down 2.9%, translating to a negative 5.4% comparable sales on a shifted basis [15] - The company faced significant sales impacts from weather events, estimating a $16 million loss due to storms and $32 million from distribution center issues [7][8] Company Strategy and Development Direction - The company aims to grow market share despite a challenging retail environment, focusing on value leadership and innovative product offerings [9][10] - New store growth remains a primary sales driver, with plans to open 15 to 17 new stores in 2024 and 160 to 180 over the next five years [17][49] - The launch of the My Academy Rewards program aims to enhance customer loyalty and engagement, with early sign-ups exceeding expectations [20][21] Management's Comments on Operating Environment and Future Outlook - Management noted that economic factors suppressing consumer spending are expected to persist, leading to a revision of annual sales guidance to a range of $5.9 billion to $6.07 billion [15][29] - The company remains focused on aligning expenses and inventory with revised forecasts while maintaining profitability [16][30] Other Important Information - The company generated approximately $91 million in cash from operations and repurchased about 1.8 million shares for $99 million during the quarter [27] - The Board approved a dividend of $0.11 per share payable on October 17, 2024 [27] Q&A Session Summary Question: What is the sales trajectory in the business? - Management indicated that August saw a positive comp, rebounding from earlier disruptions caused by weather events [34][36] Question: Is there a thought to become more promotional given the state of the consumer? - Management stated that extra promotions during lulls tend to erode average unit retail (AUR) and that they will focus on everyday value instead [38][39] Question: What is the competitive landscape like? - Management observed a slight increase in promotions but noted that it is not back to pre-pandemic levels [41][42] Question: What are the drivers of potential improvement for the back half of the year? - Management highlighted new store contributions, the loyalty program, and improved customer engagement as key drivers [45][46] Question: How are the 2023 stores performing? - Management reported that the 2023 stores are performing better than the 2022 vintage stores [48][49] Question: What is the impact of the calendar shift on sales? - Management noted a $35 million benefit from the calendar shift in Q2, which will reverse in the following quarters [60][61]

Adam GaultAcademy Sports and Outdoors: A Buy or a Sell? Until a year ago, investors holding sporting goods retailer Academy Sports and Outdoors' shares (NASDAQ:ASO) appeared rightfully pleased with their pick, especially comparing it against its main and largest peer Dick's Sporting Goods (DKS): Academy's stock almost tripled Dick's returns. Data by YChartsBut YTD, things have reversed and Academy has returned nothing but lackluster performance, with ASO shares down almost 17%, while DKS shares have gai ...

Key TakeawaysAcademy Sports + Outdoors reported a second-quarter sales decline as it faced "a tough economy."The company also cut its full-year outlook.CFO Carl Ford said quarterly sales were "more challenging than expected."Still, adjusted EPS beat estimates and shares rose in intraday trading Tuesday. Academy Sports + Outdoors (ASO) shares advanced in intraday trading Tuesday after the sporting goods and recreational products retailer beat second-quarter adjusted profit expectations, even though it posted ...

Pgiam/iStock via Getty Images Academy Sports and Outdoors, Inc. (NASDAQ:ASO) is rising slightly after just-reported Q2 earnings. The report was mixed, all things considered, and the stock still has about 10% short interest. This one has certainly been a short target many times in the last few years. This time, as we head toward Q4, with the stock down for the year, it could be one for tax loss harvesting, which suggests a better price may be in store. Below, we are setting up a new 'sample' trade for ne ...