Academy Sports Reports Q4 2024 Earnings Results

Academy Sports And Outdoors reported its fourth quarter fiscal 2024 earnings, revealing challenges amidst a constrained consumer spending backdrop. Despite a 6.6% decline in sales, the results exceeded expectations in earnings per share, highlighting resilience in adverse conditions.

Date: 21-03-2025

AI Rating: 6

Earnings Insights: Academy Sports reported a diluted earnings per share (EPS) of $1.89 for Q4 2024, with adjusted EPS reaching $1.96. This performance indicates a strong profit generation ability despite facing headwinds in sales and cash flow management.

Revenue Performance: The company reported net sales of $1.68 billion for the quarter, reflecting a 6.6% decline year-over-year. However, when adjusting for the 53rd week in the previous year, net sales were flat. Notably, comparable sales decreased by 3%, suggesting a slight improvement from previous declines.

Net Income: The net income for the quarter was reported at $133.6 million, showcasing strong profitability despite the sales dip. This reflects effective expense management strategies despite increased tariff impacts and operational challenges.

Profit Margins: The reported gross margin rate was 32.2%, down by 110 basis points compared to last year, primarily from higher freight and lower merchandise margins. However, the adjusted forecast suggests a gross margin recovery as supply chain challenges stabilize.

Free Cash Flow: Academy generated a robust free cash flow of $342 million, demonstrating strong cash management amidst financial challenges in the retail environment.

Impact of New Initiatives: The company's strategy of opening new stores, expanding e-commerce, and rolling out loyalty programs is expected to bolster sales growth moving forward. Strategic investments in technology like RFID are projected to enhance inventory accuracy, which may positively impact profitability.

Stocks: ASO