Academy(ASO)2025-06-10 12:03Financial Performance - First quarter net sales decreased by 0.9% to $1,351.4 million, while comparable sales declined by 3.7%[2] - First quarter diluted GAAP EPS was $0.68, down 32.7% from $1.01 in the same period last year[2] - Adjusted net income for the first quarter was $51.6 million, a decrease of 36.8% compared to $81.6 million last year[2] - Net sales for the thirteen weeks ended May 3, 2025, were $1,351,409, a slight decrease of 0.6% compared to $1,364,220 for the same period in 2024[26] - Net income for the thirteen weeks ended May 3, 2025, was $46,084, a decrease of 39.7% from $76,465 in the same period in 2024[26] - Adjusted Net Income for the thirteen weeks ended May 3, 2025, was $51,597,000, a decrease of 36.8% from $81,620,000 for the same period in 2024[35] - Adjusted Earnings Per Common Share, Diluted, for the thirteen weeks ended May 3, 2025, was $0.76, down from $1.08 in the prior year, representing a decline of 29.6%[35] Guidance and Projections - The company revised its fiscal 2025 guidance for net sales to a range of $5,970 million to $6,265 million, reflecting a potential decline in comparable sales of -4% to +1%[12] - The company expects adjusted earnings per share for fiscal 2025 to range from $5.45 to $6.25, compared to the previous guidance of $5.75 to $6.20[13] - The company provided guidance for the fiscal year ending January 31, 2026, projecting Adjusted Net Income between $375,000,000 and $435,000,000[37] - The projected Adjusted Earnings Per Common Share, Diluted, for the fiscal year ending January 31, 2026, is expected to range from $5.45 to $6.25[37] Store Operations - The company opened five new stores, increasing total locations to 303 across 21 states[6] - The company plans to open 20 to 25 new stores in fiscal 2025[6] Inventory and Assets - Merchandise inventories increased by 15.0% to $1,560.0 million compared to the previous year[3] - Total assets increased to $5,180,423 as of May 3, 2025, compared to $4,873,879 as of May 4, 2024[28] Cash Flow and Liabilities - Net cash provided by operating activities for the thirteen weeks ended May 3, 2025, was $157,472,000, a decrease of 21.1% compared to $199,677,000 for the same period in 2024[39] - Adjusted Free Cash Flow for the thirteen weeks ended May 3, 2025, was $106,484,000, down 36.3% from $167,322,000 in the prior year[39] - Current liabilities rose to $1,262,895 as of May 3, 2025, compared to $1,122,076 as of May 4, 2024[28] Shareholder Actions - Share repurchases in the first quarter totaled $99.9 million, a decrease of 19.1% from $123.5 million in the previous year[5] - The company repurchased $99,031 in common stock during the thirteen weeks ended May 3, 2025[30] Cost Management - The company has reduced its cost exposure to China to approximately 9% of total cost of goods sold, with a target of 6% by the end of fiscal 2025[8] - The company plans to reduce direct import cost exposure to China as part of its strategic initiatives[23] Other Financial Metrics - Gross margin increased to 34.0% for the thirteen weeks ended May 3, 2025, compared to 33.4% for the same period in 2024[26] - Operating income decreased to $69,265, representing 5.1% of net sales, down from $102,383 or 7.5% of net sales in the prior year[26] - Adjusted EBITDA for the thirteen weeks ended May 3, 2025, was $109,764, down from $142,578 in the same period in 2024[33] - Cash and cash equivalents decreased to $285,104 as of May 3, 2025, from $378,145 as of May 4, 2024[30] - Equity compensation for the thirteen weeks ended May 3, 2025, amounted to $7,542,000, compared to $6,138,000 in the same period of 2024, reflecting an increase of 23.0%[35] - The weighted average common shares outstanding for the thirteen weeks ended May 3, 2025, were 68,170,000 diluted shares, down from 75,798,000 in the prior year[35] - The tax effects of adjustments for the thirteen weeks ended May 3, 2025, were $(2,029,000), compared to $(1,432,000) for the same period in 2024[36]