Academy(US:ASO)2025-06-10 20:02Sales 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]