Academy(ASO) - 2025 Q4 - Annual Results

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]