Academy Sports And Outdoors Reports Q2 2024 Results

In its Q2 2024 earnings call, Academy Sports And Outdoors revealed a challenging retail environment with declining sales, impacted by weather disruptions and shifting consumer behavior. The company anticipates a continued focus on value to improve sales amidst economic pressures.

Date: 11-09-2024

AI Rating: 5

Earnings Per Share (EPS): The report indicates that Academy Sports And Outdoors achieved a diluted earnings per share of $1.95 for the quarter, with adjusted diluted earnings per share reaching $2.03. This suggests a stable earnings performance amid challenges.

Revenue Growth: The company's Q2 sales were reported at $1.55 billion, down 2.2% compared to the previous year, translating to a negative 6.9% on a comparable sales basis. Despite these declines, sales increased by 25% relative to pre-pandemic levels, indicating underlying resilience.

Net Income: Net income for the quarter was reported at $142.6 million. While this data reflects a solid profit margin, the significant deterioration in year-on-year sales indicates potential headwinds.

Profit Margins: The gross margin rate improved 50 basis points to 36.1%, demonstrating effective inventory management and cost control despite lower sales. This trend may positively affect the company's profitability outlook.

Free Cash Flow (FCF): Academy reported an adjusted free cash flow increase of 60%, amounting to $217 million year-to-date. This is viewed positively as it underpins operational efficiency and financial strength, allowing for continued investments and shareholder returns.

Return on Equity (ROE): While specific ROE figures weren't provided, the effective management of expenses and growth of adjusted free cash flow hint at a potentially favorable return on equity for investors looking for long-term stability.

Overall, while facing short-term sales challenges, the indicators of gross margin improvements and robust cash flow suggest that Academy Sports And Outdoors is positioning itself to better navigate the current economic environment.

Stocks: ASO