Academy(ASO) - 2026 Q4 - Annual Results

Financial Performance - Fourth quarter net sales increased by 2.5% to $1,718.5 million, while full year net sales grew by 2.0% to $6,053.4 million[3][4] - Fourth quarter comparable sales declined by 1.6%, and full year comparable sales decreased by 1.5%[3][4] - Fourth quarter diluted GAAP EPS was $1.98, reflecting a 4.8% increase year-over-year[3] - Net sales for the fiscal year ended January 31, 2026, reached $6,053,414, an increase from $5,933,450 for the previous year, representing a growth of 2.0%[26] - Gross margin improved to 34.8% for the fiscal year ended January 31, 2026, compared to 33.9% in the prior year[26] - Operating income for the fiscal year ended January 31, 2026, was $512,184, a decrease from $538,639 in the previous year, reflecting an operating margin of 8.5%[26] - Net income for the fiscal year ended January 31, 2026, was $376,768, down from $418,447 the previous year, resulting in a net income margin of 6.2%[26] - Adjusted Net Income for the fiscal year ended January 31, 2026, was $393.183 million, down from $439.487 million in the previous year[36] Cash and Assets - The company reported a 14.3% increase in cash and cash equivalents, totaling $330.3 million as of January 31, 2026[6] - Cash and cash equivalents increased to $330,320 as of January 31, 2026, compared to $288,929 at the end of the previous fiscal year[28] - Total assets grew to $5,277,036 as of January 31, 2026, up from $4,900,963 the previous year[28] - Total liabilities increased to $3,105,659 as of January 31, 2026, compared to $2,896,928 the previous year[28] - Net cash provided by operating activities for the fiscal year ended January 31, 2026, was $434.798 million, down from $528.082 million in the previous year[40] Inventory and Store Expansion - Merchandise inventories increased by 14.9% to $1,503.8 million, with inventory per store up 6.3% in dollars[6] - The company reported a decrease in merchandise inventories to $1,503,756 as of January 31, 2026, from $1,308,840 the previous year[28] - The company opened 24 new stores in fiscal 2025 and plans to open an additional 20-25 stores in fiscal 2026[9] - The company plans to continue expanding its market presence and opening new stores as part of its strategic growth initiatives[21] Future Guidance - For fiscal 2026, the company expects net sales to range from $6,175 million to $6,355 million, representing a growth of 2.0% to 5.0%[12] - The guidance for fiscal 2026 includes an expected GAAP net income of $380 million to $415 million, a 5.6% increase compared to fiscal 2025[12] - The company projects Adjusted Net Income for the fiscal year ending January 30, 2027, to be between $410.0 million and $445.0 million[38] - The guidance for Diluted Adjusted Earnings per Common Share for the fiscal year ending January 30, 2027, is expected to range from $6.10 to $6.60[38] Dividends and Share Repurchase - The quarterly dividend was increased by 15% per share, marking the fourth consecutive year of growth[8] - The company has approximately $437 million remaining on its current share repurchase authorization as of the end of fiscal 2025[11] Adjusted Metrics - Adjusted EBITDA for the fiscal quarter ended January 31, 2026, was $202.571 million, compared to $211.665 million for the previous quarter[33] - Adjusted Earnings per Common Share, Diluted, for the fiscal quarter ended January 31, 2026, was $1.97, compared to $1.96 in the previous quarter[36] - Adjusted Free Cash Flow for the fiscal quarter ended January 31, 2026, was $143.724 million, significantly higher than $90.494 million in the previous quarter[40] Risks and Challenges - Future performance is subject to various risks, including macroeconomic challenges and changes in consumer spending patterns[21] - The company incurred $30.0 million in equity compensation adjustments for the fiscal year ending January 30, 2027[38]