Financial Performance - Academy Sports + Outdoors delivered the best third quarter financial results in the Company's history[8] - Net sales reached $1.59 billion in Q3 2021[9] - Gross margin was $560.8 million with a rate of 35.2% in Q3 2021[10] - Pro Forma Adjusted Net Income was $164.1 million in Q3 2021[15] - Pro Forma Adjusted Diluted EPS was $1.75 in Q3 2021[15] Sales Growth - Comparable sales increased by 16.5% in Q3 2021, marking the ninth consecutive quarter of positive comparable sales[11] - E-commerce sales grew by 25.9% compared to Q3 FY2020 and 146.6% compared to Q3 FY2019[22, 24] - Sales penetration in e-commerce was 8.0% in Q3 2021, compared to 7.5% in Q3 2020 and 4.5% in Q3 2019[25] Capital Allocation and Guidance - The Company repurchased and retired 5.7 million shares for approximately $250 million during the quarter[18] - Year-to-date, the Company has repurchased 8.9 million shares for approximately $350 million[18] - The Company raises full-year comparable sales forecast from 14% to 17% to 17% to 18%[29]

Financial Performance - Academy Sports + Outdoors reported record fourth quarter 2021 results[6] - Q4 Pro Forma Adjusted Diluted EPS increased to $1.61[11, 12] - Fiscal year net sales reached $6.8 billion[21] - Fiscal year gross margin rate increased to 34.7%[23] - Fiscal Year Pro Forma Adjusted Net Income reached $716.5 million[27] - Fiscal Year Pro Forma Adjusted Diluted EPS reached $7.60[27] Sales Growth - Q4 comparable sales increased by 13.1%[15] - Fiscal year comparable sales increased by 18.9%[29] - E-commerce sales grew by 22.7% compared to Q4 FY2020[39] and 97.2% compared to Q4 FY2019[41] - Fiscal year e-commerce sales grew by 6.2% compared to FY2020[42] and 153.1% compared to FY2019[42] Capital Allocation - The company repurchased and retired 10.6 million shares for $411.4 million in 2021[34] - The company initiated a quarterly cash dividend of $0.075 per share[34] Fiscal Year 2022 Guidance - Comparable sales are expected to range from -4.0% to -1.0%[37] - Adjusted EPS is expected to range from $6.70 to $7.25[37]

Core Insights - The article discusses the investment potential of Academy Sports and Outdoors, highlighting market trends and opportunities for investors [1] Company Overview - Academy Sports and Outdoors (ASO) is positioned as an exciting investment opportunity within the retail sector, particularly in sporting goods and outdoor equipment [1] Market Trends - The video accompanying the article provides insights into current market trends that may affect the performance of Academy Sports and Outdoors [1] Investment Opportunities - Analysts suggest that there are potential investment opportunities related to Academy Sports and Outdoors, which could be beneficial for investors looking to capitalize on market movements [1]

Financial Data and Key Metrics Changes - Net sales for Q4 2024 were $1,680,000,000, representing a 6.6% decline compared to the previous year, primarily due to a comparison against a 53-week fiscal year [7][36] - Comparable sales decreased by 3%, with a sequential improvement from Q3 and the first half of the year [8][36] - Gross margin for Q4 was 32.2%, down 110 basis points from the previous year, driven by higher freight and distribution costs [13][37] - Net income for Q4 was $133,600,000, with diluted earnings per share of $1.89 [36] Business Line Data and Key Metrics Changes - The outdoor category was the best performer, with total net sales growth of 2% [11] - The mineral category saw a 1% decline in net sales, rebounding during the holiday season due to strong youth apparel sales [12] - Sports and Recreation net sales improved, finishing down 1% compared to the previous year [12] - Footwear net sales were down 2%, with strong performances from brands like ASICS and New Balance [13] Market Data and Key Metrics Changes - The company gained approximately 40 basis points of store traffic share among households earning over $100,000 annually in December [40] - Traffic growth accelerated by 700 basis points in December compared to October, indicating a positive response to value offerings [40] Company Strategy and Development Direction - The company plans to open 20 to 25 new stores in 2025, having already opened three in Pennsylvania and Maryland [20] - A focus on enhancing the e-commerce experience and expanding fulfillment options is part of the growth strategy [23] - The introduction of the Jordan brand in 145 stores is expected to significantly impact sales and brand presence [26][80] - The company aims to maintain its position as a value leader, especially for lower to middle-income consumers [28] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious consumer environment, with expectations of continued softness in the lower-income demographic [60] - The company anticipates Q1 to be the most challenging quarter, with Q2 expected to show stronger performance due to new initiatives [49][60] - Management expressed optimism about the impact of new store openings and brand launches on future growth [51] Other Important Information - The company generated $528,000,000 in cash from operations in 2024 and returned over $396,000,000 to shareholders through dividends and share repurchases [42][43] - An 18% increase in dividends was approved, resulting in $0.13 per share payable in April 2025 [44] Q&A Session Summary Question: What are the expected drivers of gross margin expansion in 2025? - Management indicated that recapturing supply chain headwinds and a higher penetration of soft lines, supported by Jordan and Nike, are expected to drive gross margin expansion [54][55] Question: How does the company view the impact of weather versus consumer uncertainty? - Management acknowledged a softening in business due to weather but noted a rebound as temperatures warmed, indicating a cautious but stabilizing consumer environment [60][61] Question: What is the expected contribution of new stores to comps in 2025? - Management expects new stores to contribute positively to comps, with a significant number of stores from previous vintages entering the comp base [66] Question: Can you provide more details on the Jordan brand launch? - The Jordan brand will be launched in 145 stores and online, marking the first time Academy will sell Jordan products, with a focus on sport-related items [78][80] Question: What is the company's strategy regarding tariffs and pricing? - Management emphasized a diversified sourcing base to mitigate tariff impacts and a commitment to maintaining competitive pricing on key items [86][87]

Financial Data and Key Metrics Changes - Net sales for Q4 2024 were $1,680 million, representing a 6.6% decline compared to the previous year, primarily due to a comparison against a 53-week fiscal year [7][36] - Comparable sales decreased by 3%, with a sequential improvement from Q3 and the first half of the year [8][36] - Gross margin for Q4 was 32.2%, down 110 basis points year-over-year, influenced by higher freight and distribution costs [13][37] - Net income for Q4 was $133.6 million, with diluted earnings per share of $1.89, while adjusted net income was $139 million or $1.96 per share [36][48] Business Line Data and Key Metrics Changes - The outdoor category was the best performer, with net sales growth of 2%, driven by hunting, fishing, and camping products [11] - The footwear business saw a 2% decline in net sales, with strong performances from brands like ASICS and New Balance [13] - Private brands accounted for approximately 23% of total net sales, up from 22% in the previous fiscal year [18] Market Data and Key Metrics Changes - The company gained approximately 40 basis points of store traffic share among households earning over $100,000 annually in December, indicating a shift in consumer behavior towards value [40][93] - Traffic growth accelerated by 700 basis points in December compared to October, reflecting a positive response to the company's value proposition [40] Company Strategy and Development Direction - The company plans to open 20 to 25 new stores in 2025, having already opened three in Pennsylvania and Maryland [20] - A significant focus will be on enhancing the e-commerce experience, including improvements in site navigation and fulfillment options [23][24] - The introduction of the Jordan brand in 145 stores is expected to be a major growth driver, with plans to expand Nike assortments as well [26][80] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2025, anticipating challenges in Q1 but expecting Q2 to be the strongest quarter due to new initiatives [49][60] - The company is adapting to macroeconomic pressures and consumer behavior changes, focusing on value offerings to attract a broader customer base [28][60] Other Important Information - The company generated $528 million in cash from operations in 2024 and returned over $396 million to shareholders through dividends and share repurchases [42][43] - An 18% increase in dividends was approved, resulting in a payout of $0.13 per share [44] Q&A Session Summary Question: What are the expected drivers of gross margin expansion in 2025? - Management indicated that recapturing supply chain headwinds and a higher penetration of soft lines, supported by Jordan and Nike, are expected to drive margin expansion [54][55] Question: How does the company view the impact of weather versus consumer uncertainty? - Management noted that while weather has impacted sales, they are optimistic about trends improving as the year progresses, particularly with new initiatives [60][62] Question: What is the expected contribution of new stores to comps in 2025? - Management expects new stores to contribute positively to comps, with a significant number of stores from previous vintages entering the comp base [66] Question: Can you provide more details on the Jordan brand launch? - The Jordan brand will be launched in 145 stores and online, marking the first time Academy will sell this brand, with a focus on sport products [78][80] Question: What is the company's strategy regarding tariffs and sourcing? - The company has diversified its sourcing base to mitigate tariff impacts and is focused on maintaining value for customers despite potential cost increases [86][87]