Academy(US:ASO)2024-03-21 20:06Store Operations - Academy Sports + Outdoors operates 282 stores across 18 states, with net sales distribution of 28% outdoor, 28% apparel, 24% sports & recreation, and 20% footwear for 2023[19]. - The company operated 282 stores as of February 3, 2024, with 111 located in Texas, indicating a strong presence in the state[36]. - The average store size is approximately 70,000 gross square feet, with 85% dedicated to selling space[33]. - The company has a long-term lease strategy, with 281 out of 282 stores leased from third parties, typically under agreements ranging from 15 to 20 years[33]. - The distribution centers have the capacity to service up to approximately 120 stores each, enhancing logistical efficiency[41]. Sales and Revenue - Total merchandise sales for fiscal year ended January 28, 2023, were $6,125,876, a decrease of 3.6% from $6,357,825 in the previous year[31]. - E-commerce sales accounted for 10.7% of merchandise sales in 2023, consistent with 2022, compared to 9.3% in 2021[31]. - Firearms accounted for approximately 5% of the company's net sales in 2023[61]. - Seasonal fluctuations significantly impact net sales, particularly during summer holidays and the back-to-school selling season[43]. - The company experiences significant seasonal fluctuations, with a substantial portion of net sales driven by summer holidays and the November/December holiday selling season[248]. Merchandise and Branding - Approximately 80% of 2023 merchandise sales were from national brand products, with no single brand accounting for more than 12% of total sales[22]. - The company has a portfolio of 19 private label brands, with 55% of customers purchasing private label products in 2023[27]. - The company emphasizes a localized merchandising strategy to connect with a broad range of consumers[19]. Customer Engagement - Academy's omnichannel strategy includes a buy-online-pickup-in-store program, enhancing customer convenience and engagement[20]. - Academy's average customer visits stores 2 to 3 times per year, indicating strong customer engagement[22]. Competition and Market Environment - The retail environment is highly competitive, with primary competitors being large format sporting goods stores and mass general merchants[24]. - The company operates in a complex regulatory environment, subject to numerous federal, state, and local laws affecting operations and financial results[60]. Workforce and Community Engagement - The company employs approximately 22,000 team members, with a balanced workforce of 50% full-time and 50% part-time[44]. - The company partners with over 750 organizations, impacting approximately 400,000 participants in youth sports leagues[40]. Financial Management - A hypothetical 100 basis point increase in interest rates would increase interest expense by approximately $0.9 million[247]. - The company has no derivative financial instruments outstanding as of February 3, 2024[247]. - The company utilizes fixed interest rate debt to limit exposure to floating interest rates on long-term debt[247]. Leadership and Compliance - The company has a strong leadership team, with key executives having extensive experience in retail and merchandising[54][55][56][58]. - The company is committed to compliance with various labor and employment laws, including those related to wage and hour regulations[60]. - The company has a diverse portfolio of intellectual property, including trademarks and private label brands, which are critical to its success[59]. - The company has entered into intellectual property agreements with third parties, typically involving royalties on sales[59]. Marketing Strategy - The company’s marketing strategy focuses on generating awareness and improving purchase intent through data-driven campaigns[37].