Core Viewpoint - Academy Sports + Outdoors is expanding its retail footprint by opening 20-25 new stores in fiscal 2025, marking significant growth and community engagement initiatives [1][4]. Group 1: Store Expansion - Academy has surpassed 300 stores with recent openings in York, Harrisburg, and Hagerstown, marking its first locations in Pennsylvania and Maryland, and plans to open a total of 20-25 new stores in fiscal 2025 [1][4]. - In 2023, Academy opened 14 new stores across 6 states, and in 2024, it opened 16 new stores across 10 states, including its first locations in Ohio [4]. Group 2: Community Engagement - The company is donating over $40,000 to support more than 350 children through local Boys & Girls Clubs in the communities where new stores have opened [3]. - NFL star Micah Parsons participated in the Harrisburg grand opening, taking 100 local kids on a shopping spree, highlighting the company's commitment to community support [3]. Group 3: Product Offering and Services - Academy stores provide a wide range of products including apparel, footwear, sports and camping equipment, hunting and fishing gear, and outdoor cooking supplies from top national brands [2][5]. - The company offers free services such as grill and bike assembly, scope mounting, and hunting and fishing licenses available for purchase in stores [5][6]. Group 4: Employment Opportunities - The five new stores are expected to create approximately 300 new jobs in their local communities [8].

Core Viewpoint - JPMorgan analyst Christopher Horvers maintains a Neutral rating on Academy Sports and Outdoors, Inc. (ASO), raising the price target to $54 from $52, despite mixed quarterly results [1][4]. Financial Performance - Academy Sports reported fourth-quarter adjusted earnings per share of $1.96, exceeding the street estimate of $1.83 [1]. - Quarterly sales reached $1.676 billion, reflecting a 6.6% year-over-year decline, slightly missing the analyst consensus estimate of $1.677 billion [1]. Strategic Initiatives - The company is improving new store site selection for the second half of 2024, addressing previous underperformance in unit growth that began in 2022 [2]. - IT enhancements and plans are expected to boost the performance of existing stores [3]. - Academy Sports is expanding its Nike product assortment to 145 of its 300+ locations and its website, starting in April, to better compete with Dick's Sporting Goods [3]. Market Challenges - The macroeconomic environment poses challenges for Academy Sports, particularly due to its higher exposure to lower-income consumers compared to competitors like Dick's Sporting Goods [4]. - Despite an attractive valuation, there is uncertainty regarding the company's growth potential under current market conditions, with projected 1Q/FY25 comparable sales of -3.5% and flat, respectively [4]. Stock Performance - ASO shares are trading higher by 1.14% to $47.96 as of the last check on Friday [5].

Market Overview - Major U.S. indexes have experienced significant volatility in 2024, with the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite declining by 6.12%, 4.07%, and 10.40% year-to-date, respectively [1] - Investor concerns are heightened due to potential trade wars, government shutdowns, and recession fears, influenced by President Trump's fiscal, trade, and immigration policies [1] Economic Indicators - The Consumer Price Index (CPI) rose by 0.2% in February, following a 0.5% increase in January, with an annual CPI drop of 2.8% from 3% in January [2] - Trump's tariffs have raised inflation fears and concerns about economic growth, impacting expectations for Federal Reserve interest rate cuts, which are currently between 4.25% and 4.50% [2] - The labor market remains stable, but immigration policies and layoffs threaten its stability [2] Investment Opportunities - In a volatile market, dividend-paying stocks are recommended for portfolio diversification, with notable companies including Toll Brothers, DICK'S Sporting Goods, KornFerry International, Banco Santander, and Applied Materials [3] Company Profiles Toll Brothers - Toll Brothers specializes in building various residential communities and has a Zacks Rank of 3 (Hold) [4] - The company declared a dividend of 25 cents per share, with a dividend yield of 0.9%, and has increased its dividend five times over the past five years, with a payout ratio of 7% [5] DICK'S Sporting Goods - DICK'S Sporting Goods is a major omni-channel retailer for sporting goods, holding a Zacks Rank of 3 [6] - The company announced a dividend of $1.21 per share, yielding 2.3%, and has raised its dividend seven times in the last five years, with a payout ratio of 31% [7] KornFerry International - KornFerry is a leading executive recruitment firm with a Zacks Rank of 2 (Buy) [8] - The company declared a dividend of 48 cents per share, yielding 2.2%, and has increased its dividend six times over the past five years, with a payout ratio of 31% [9] Banco Santander - Banco Santander is the largest bank in Spain, currently holding a Zacks Rank of 3 [11] - The bank declared a dividend of 8 cents per share, yielding 2.4%, and has increased its dividend seven times in the last five years, with a payout ratio of 19% [12] Applied Materials - Applied Materials is a major supplier of semiconductor fabrication equipment, with a Zacks Rank of 3 [13] - The company announced a dividend of 46 cents per share, yielding 1.1%, and has increased its dividend six times over the past five years, with a payout ratio of 18% [14]

The Kroger Co. (KR) is likely to register decreases in the top and bottom lines when it reports fourth-quarter fiscal 2024 results on March 6. The Zacks Consensus Estimate for revenues is pegged at $34,594 million, indicating a decline of 6.7% from the prior-year reported figure.The consensus mark for the bottom line has increased a penny in the past seven days and is pegged at $1.10. The consensus figure implies a decline of 17.9% from the prior-year quarter. The company delivered a trailing four-quarter e ...

Financial Data and Key Metrics Changes - Net sales for Q4 2024 were $181.6 million, down from $196.3 million in the prior year, with same-store sales decreasing by 6.1% [6][18] - Gross profit for Q4 2024 was $51.2 million, compared to $59.2 million in Q4 2023, resulting in a gross profit margin of 28.2%, down from 30.2% [15][17] - The net loss for Q4 2024 was $20.9 million or $0.95 per basic share, compared to a net loss of $8.9 million or $0.41 per basic share in Q4 2023 [17][19] - Adjusted EBITDA was negative $16.4 million in Q4 2024, compared to negative $8.7 million in the same quarter last year [18] Business Line Data and Key Metrics Changes - On a same-store basis, apparel sales declined by 1.3%, footwear by 5.4%, and hard goods by 8.7% [8] - Average sale decreased by 2.3%, while transactions were down by 3.8% [8] Market Data and Key Metrics Changes - The company faced macroeconomic headwinds affecting consumer discretionary spending, with winter-related product sales being particularly soft due to unfavorable weather conditions [7][12] - Southern markets experienced below-normal snowfall, impacting winter product sales [13] Company Strategy and Development Direction - The company plans to close 15 stores in fiscal 2025, having already closed eight locations in the first quarter, to focus resources on more productive stores [11] - Capital expenditures for fiscal 2024 were $10.9 million, with expectations for $4 million to $8 million in fiscal 2025, primarily for store-related remodeling [20] Management's Comments on Operating Environment and Future Outlook - Management indicated that sales trends remain challenged, with no improvement in macroeconomic conditions expected in the near term [12][23] - For Q1 2025, same-store sales are expected to decline in the mid to high single-digit range compared to Q1 2024 [23] Other Important Information - Merchandise inventory at the end of Q4 2024 decreased by 5.6% year-over-year, reflecting efforts to align inventory levels with sales [20] - The company amended and extended its $150 million credit agreement with Bank of America, providing financial flexibility [22] Q&A Session Summary Question: What are the expectations for same-store sales in the upcoming quarter? - Management expects same-store sales to decline in the mid to high single-digit range due to ongoing macroeconomic headwinds [23] Question: How is the company managing its inventory levels? - The company has successfully reduced inventory by 5.6% year-over-year to better align with sales [20] Question: What is the outlook for the winter business? - The winter business remains soft, particularly in southern markets, but spring-related activities are anticipated to drive business as the season transitions [12][13]