Key Takeaways
- Academy Sports + Outdoors missed first-quarter profit and sales estimates, which it blamed on economic pressures on its shoppers.
- The sporting goods and outdoor gear retailer’s comparable store sales dropped 5.4% year-over-year.
- Shares fell more than 6% in intraday trading Tuesday to their 2024 lows.
Shares of Academy Sports + Outdoors (ASO) fell Tuesday after the sporting goods and outdoor recreation gear retailer posted worse-than-expected quarterly results as it said its shoppers faced tough times financially.
The company reported first-quarter adjusted earnings per share (EPS) of $1.08 and revenue of $1.36 billion, down 1.4% year-over-year. Both missed forecasts. Comparable store sales slumped 5.7%.
CEO Says Its Shoppers ‘Remain Under Pressure’
Chief Executive Officer (CEO) Steve Lawrence said the results show “our customers remain under pressure in the current economic environment.” He added that the company would “navigate through the remainder of the year by continuing to lean into our position as the value leader in our space, while also inspiring customers to shop through introductions and expansions of new and innovative products.”
Academy added two new stores in the period, and has plans to open 15 to 17 in 2024. The company said last quarter it targeted 160 to 180 new locations over the next five years.
Academy noted that it had repurchased $124 million in stock during the first quarter, and because of that it raised its full-year EPS to a range of $6.05 to $7.05 from the previous estimate of $5.90 to $6.90.
Academy Sports + Outdoors shares fell 6.7% as of 11:05 a.m. ET Tuesday to $49.81, their lowest level of 2024. They have lost about 24% this year.