Academy(US:ASO) ZACKS·2025-03-21 17:45Core Insights - Academy Sports and Outdoors, Inc. (ASO) reported fourth-quarter fiscal 2024 results with earnings and revenues exceeding the Zacks Consensus Estimate, although both metrics declined year-over-year [1][2]. Financial Performance - Adjusted earnings per share (EPS) for Q4 were $1.96, surpassing the Zacks Consensus Estimate of $1.82, down from $2.21 in the prior-year quarter [2]. - Quarterly revenues reached $1.68 billion, beating the consensus mark by 0.6%, but declined 6.6% year-over-year due to a fall in comparable sales [2]. - Comparable sales decreased by 3% year-over-year, compared to a 3.6% decline in the prior-year quarter, driven by a 5.9% drop in transactions, partially offset by a 3.1% increase in ticket size [3]. Operating Highlights - Selling, general and administrative expenses were $385.5 million, down from $393 million in the prior-year quarter [4]. - Gross margins declined by 110 basis points year-over-year to 32.2%, primarily due to higher freight and distribution costs and lower merchandise margins [4]. - Adjusted net income for the quarter was $138.8 million, down from $168.2 million in the prior-year quarter [5]. - Adjusted EBITDA for Q4 was $211.7 million, compared to $255.2 million in the prior-year quarter [5]. Balance Sheet - As of February 1, 2025, cash and cash equivalents totaled $288.9 million, down from $347.9 million on February 3, 2024 [6]. - Merchandise inventories were $1.3 billion, compared to $1.2 billion in the prior-year period [6]. - Long-term debt net stood at $482.7 million, slightly down from $484.6 million in the prior-year quarter [6]. Dividend Announcement - The company declared an 18% dividend increase to 13 cents per share, payable on April 17, 2025, to shareholders of record as of March 25, 2025 [7]. Fiscal 2024 Highlights - Total revenues for fiscal 2024 were $5.9 billion, down from $6.2 billion in fiscal 2023 [8]. - Adjusted EBITDA for fiscal 2024 was $720.2 million, compared to $846 million in fiscal 2023 [8]. - Adjusted EPS for fiscal 2024 was $6.02, down from $6.96 in the previous year [8]. Fiscal 2025 Outlook - For fiscal 2025, the company expects net sales to be between $6.1 billion and $6.3 billion, with comparable sales projected to range from 2% to 1% [10]. - The gross margin rate is anticipated to be between 34% and 34.5%, with capital expenditures expected to be between $220 million and $250 million [10]. - Fiscal 2025 adjusted net income is projected to be between $400 million and $435 million [10]. - Adjusted free cash flow is expected to be between $290 million and $320 million, with adjusted EPS anticipated to be in the range of $5.75 to $6.20 [11].