Academy(US:ASO)2022-06-06 16:00Sales Performance - For the first quarter of 2022, comparable sales decreased by 7.5% compared to an increase of 38.9% in the first quarter of 2021, influenced by prior U.S. government stimulus packages [93]. - Net sales decreased by $112.6 million, or 7.1%, in the first quarter of 2022 compared to the same period in 2021, primarily due to a 7.5% decline in comparable sales [110]. - E-commerce net sales increased by $21.9 million, or 18.8%, in the first quarter of 2022, representing 9.5% of merchandise sales compared to 7.4% in the first quarter of 2021 [112]. Store Operations - As of April 30, 2022, the company operated 260 stores, an increase from 259 stores in the prior year quarter [86]. - The average store size is approximately 70,000 gross square feet, with locations primarily in the southern United States [86]. - The company plans to open at least eight new stores in 2022, with expectations for significant new store openings over the next five years [99]. Financial Performance - Adjusted EBITDA for the thirteen weeks ended April 30, 2022, was $236,229 thousand, compared to $270,993 thousand for the same period in 2021, reflecting a decrease of approximately 12.8% [122]. - Adjusted Net Income for the thirteen weeks ended April 30, 2022, was $153,227 thousand, down from $182,531 thousand in the prior year, representing a decline of about 16.1% [125]. - Adjusted Earnings per Share (EPS) for the thirteen weeks ended April 30, 2022, was $1.77 (basic) and $1.73 (diluted), compared to $1.98 (basic) and $1.89 (diluted) for the same period in 2021, indicating a decrease of 10.6% and 8.5% respectively [125]. Cost Management - Selling, general and administrative (SG&A) expenses decreased by $8.7 million, or 2.7%, to $315.9 million in the first quarter of 2022, but as a percentage of net sales, SG&A increased to 21.5% [114]. - SG&A expenses as a percentage of sales declined from 25.9% in 2019 to 21.3% in 2021, indicating improved cost management [102]. - The gross margin is influenced by factors such as promotional activities, product mix, and cost control measures [100]. Cash Flow and Debt - As of April 30, 2022, the company had cash and cash equivalents totaling $472.4 million, which is expected to be sufficient to meet cash requirements for at least the next 12 months [130]. - The company repaid $99.0 million of outstanding borrowings under the Term Loan, leaving an outstanding principal balance of $300.0 million under the Amended Credit Agreement [131]. - The total debt obligations for the company amount to $402,727 thousand for the fiscal year 2022, with a total of $544,000 thousand due by 2026 and beyond [133]. Share Repurchase and Dividends - As of April 30, 2022, the company has $100.2 million remaining available for share repurchases under the 2021 Share Repurchase Program, which allows for up to $500 million in total [138]. - In the fiscal year ended January 29, 2022, the company repurchased a total of 10,566,796 shares for $411.4 million, with an average price of $38.93 per share [140]. - The company declared a quarterly cash dividend of $0.075 per share, totaling $6.5 million paid in the first quarter of 2022 [143]. Investment and Capital Expenditures - The company expects capital expenditures for fiscal year 2022 to be approximately $140 million, with 50% allocated to corporate, e-commerce, and IT programs [144]. - Cash used in investing activities increased by $0.5 million in the first quarter of 2022 compared to the first quarter of 2021, primarily due to higher capital expenditures [148]. Omnichannel Strategy - The company aims to deepen customer relationships through enhanced omnichannel capabilities, integrating e-commerce with physical stores [86]. - The company continues to invest in enhancing its omnichannel capabilities, which have driven growth in net sales and gross margin [98]. Supply Chain and Inventory Management - The product assortment for the first quarter of 2022 included outdoor (31%), sports & recreation (24%), apparel (24%), and footwear (21%) categories [84]. - The company has implemented new tools for inventory management, improving handling and vendor relations to better meet customer demand [96]. - The impact of COVID-19 has led to supply chain disruptions, affecting transportation and inventory costs [101].