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Academy Sports and Outdoors (ASO)
NASDAQ:ASO
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Academy Sports and Outdoors
(NASDAQ:ASO)
Rating:72Outperform
Price Target:
$47.00
▲(8.15%Upside)
Positive Factors
Online Traffic
Academy.com is gaining significant online traffic, being among the top sites for 'converse shoes' and 'jordan shoes' keywords.
Product Launches
Recent product launches, including Converse and Jordan, are resonating well with both new and existing Academy customers.
Negative Factors
Consumer Spending
Spending in the sporting goods category has decelerated, which could negatively impact the company's performance.
Earnings Guidance
Higher tariffs on goods from China and increased costs of steel and aluminum may push earnings guidance to the lower end of the expected range.
Academy Sports and Outdoors (ASO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.85B
Dividend Yield1.07%
Average Volume (3M)1.35M
Price to Earnings (P/E)7.5
Beta (1Y)1.27
Revenue Growth-3.67%
EPS Growth-14.66%
CountryUS
Employees9,900
SectorConsumer Cyclical
Sector Strength68
IndustrySpecialty Retail
Share Statistics
EPS (TTM)1.96
Shares Outstanding66,526,590
10 Day Avg. Volume1,264,164
30 Day Avg. Volume1,353,038
Financial Highlights & Ratios
PEG Ratio-1.22
Price to Book (P/B)1.64
Price to Sales (P/S)0.00
P/FCF Ratio9.42
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$55.00Price Target Upside26.55% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
Academy Sports and Outdoors Business Overview & Revenue Model
Company DescriptionAcademy Sports and Outdoors (ASO) is a leading full-line sporting goods and outdoor recreation retailer in the United States. The company offers a wide assortment of products in categories such as sports equipment, outdoor gear, footwear, apparel, and fitness equipment. With a focus on delivering high-quality products at competitive prices, Academy Sports and Outdoors caters to a broad range of customers, from novice sports enthusiasts to experienced outdoor adventurers. The company's retail footprint includes both physical stores and an online presence, providing convenient shopping options for consumers.
How the Company Makes MoneyAcademy Sports and Outdoors generates revenue primarily through the sale of sporting goods, outdoor products, and related apparel and footwear. The company's key revenue streams include in-store sales from its network of retail locations and e-commerce sales through its website. Academy Sports and Outdoors leverages strategic partnerships with well-known brands and suppliers to offer a diverse product selection, which attracts a wide customer base. Additionally, the company benefits from private label brands that contribute to higher profit margins. Seasonal promotions, merchandising strategies, and customer loyalty programs further enhance sales and drive revenue growth.
Academy Sports and Outdoors Earnings Call Summary
Earnings Call Date:Mar 20, 2025
(Q4-2024)
| % Change Since: -8.39%|
Next Earnings Date:Jun 10, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment with strong performance in certain segments and strategic initiatives like new store openings and the introduction of My Academy Rewards. However, challenges such as net sales decline, decreased comp sales, and gross margin pressure indicate a cautious outlook. Overall, the highlights and lowlights suggest a balanced perspective.Q4-2024 Updates
Positive Updates
Strong Performance in Outdoor Category
Outdoor was the best performing category with a 2% net sales growth in Q4, driven by Hunting, Fishing, and Camping business and key national brands like YETI and Stanley.
Apparel Sales Rebound
Apparel sales improved with only a 1% decline in Q4, driven by Youth Apparel, Fleece, and Workwear. Key brands like Nike and Carhartt performed strongly during the holiday season.
Positive Trends in New Store Openings
The 2022 vintage stores outperformed the existing store base by running a positive comp. New stores are expected to drive future growth, with 20 to 25 new stores planned for 2025.
Successful Launch of My Academy Rewards
Over 11 million customers enrolled in My Academy Rewards, resulting in strong uplift in spend from loyalty members during the holidays.
Significant Growth in Private Brands
Private brands represented 23% of total net sales in 2024, up from 22% in 2023, driven by customer gravitation towards value.
Record Shareholder Returns
Returned over $396 million to shareholders through dividends and share repurchases in 2024, with an 18% increase in dividends approved for 2025.
Negative Updates
Net Sales Decline
Net sales for Q4 2024 were $1.68 billion, representing a 6.6% decline year-over-year due to the loss of the 53rd week from the previous year.
Decrease in Comp Sales
Excluding new stores, comp sales decreased by 3% in Q4 2024, slightly exceeding guidance but reflecting consumer spending constraints.
Gross Margin Decline
Gross margin rate declined by 110 basis points to 32.2% in Q4, driven by higher freight and distribution costs and lower merchandise margins.
Increased Inventory Levels
Inventory balance increased by 9.6% to $1.3 billion, with per-store inventory units down 2.9% but inventory dollars up 3.7%.
Company Guidance
During the Academy Sports and Outdoors Fourth Quarter Fiscal 2024 Results Conference Call, the company provided guidance for Fiscal 2025, projecting net sales between $6.1 billion and $6.3 billion. They expect comparable sales to range from negative 2% to positive 1%. Gross margin is anticipated to be between 34.0% and 34.5%, despite potential tariff impacts. The company plans to open 20 to 25 new stores and continue expanding their e-commerce and private brand offerings. Adjusted net income is forecasted to range from $400 million to $435 million, with adjusted diluted earnings per share between $5.75 and $6.20. They also expect to generate $290 million to $320 million in adjusted free cash flow, with $220 million to $250 million allocated for capital expenditures.Academy Sports and Outdoors Financial Statement Overview
Summary
Academy Sports and Outdoors demonstrates a balanced financial performance with strengths in cash flow management and profitability. While revenue growth has been a challenge, operational efficiency and financial stability have been maintained. The company should focus on improving revenue and managing leverage to enhance its financial position further.Income Statement
Academy Sports and Outdoors has experienced declining revenues over the past few years. The gross profit margin and net profit margin have remained relatively stable, indicating effective cost management. However, the decline in EBIT and EBITDA margins suggests some operational inefficiencies. Despite this, the company maintains a satisfactory level of profitability in a challenging retail environment.72
Positive
Balance Sheet
The company has managed to improve its equity position over the years, with a positive trajectory in stockholders' equity. However, the debt-to-equity ratio remains high, indicating potential leverage risk. The equity ratio shows a solid level of asset financing through equity, highlighting financial stability improvements.65
Positive
Cash Flow
Academy Sports and Outdoors has shown strong operating cash flow relative to net income, indicating good cash generation efficiency. The free cash flow remains positive, although the growth rate has slowed, reflecting prudent capital management. The company manages its cash flows effectively, ensuring liquidity and operational continuity.78
Positive
| Breakdown | ||||
| Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 5.93B | 6.16B | 6.40B | 6.77B | 5.69B | Gross Profit |
| 2.01B | 2.11B | 2.21B | 2.35B | 1.73B | EBIT |
| 538.64M | 677.86M | 846.55M | 907.95M | 420.40M | EBITDA |
| 693.17M | 820.14M | 971.51M | 1.00B | 534.95M | Net Income Common Stockholders |
| 418.45M | 519.19M | 628.00M | 671.38M | 308.76M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 288.93M | 347.92M | 337.14M | 486.00M | 377.60M | Total Assets |
| 4.90B | 4.68B | 4.60B | 4.58B | 4.38B | Total Debt |
| 1.30B | 1.70B | 1.77B | 1.85B | 2.02B | Net Debt |
| 1.01B | 1.35B | 1.43B | 1.36B | 1.64B | Total Liabilities |
| 2.90B | 2.72B | 2.97B | 3.12B | 3.27B | Stockholders Equity |
| 2.00B | 1.95B | 1.63B | 1.47B | 1.11B |
| Cash Flow | Free Cash Flow | |||
| 328.49M | 327.49M | 443.20M | 597.25M | 970.33M | Operating Cash Flow |
| 528.08M | 535.78M | 552.00M | 673.26M | 1.01B | Investing Cash Flow |
| -186.12M | -206.14M | -108.81M | -76.02M | -33.14M | Financing Cash Flow |
| -400.95M | -318.87M | -592.05M | -488.85M | -750.23M |
Academy Sports and Outdoors Technical Analysis
Positive
43.46
Price Trends
40.73
Positive
45.72
Negative
49.89
Negative
Market Momentum
0.35
Negative
57.21
Neutral
87.10
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASO, the sentiment is Positive. The current price of 43.46 is above the 20-day moving average (MA) of 43.00, above the 50-day MA of 40.73, and below the 200-day MA of 49.89, indicating a neutral trend. The MACD of 0.35 indicates Negative momentum. The RSI at 57.21 is Neutral, neither overbought nor oversold. The STOCH value of 87.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASO.
Academy Sports and Outdoors Risk Analysis
Academy Sports and Outdoors disclosed 40 risk factors in its most recent earnings report. Academy Sports and Outdoors reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Academy Sports and Outdoors Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $14.33B | 12.79 | 40.22% | 2.52% | 3.33% | 15.47% | |
72 Outperform | $2.85B | 7.49 | 21.14% | 1.07% | -3.67% | -14.66% | |
68 Neutral | $6.42B | 44.55 | -39.97% | ― | 2.18% | -32.87% | |
65 Neutral | $14.92B | 17.21 | 30.21% | 5.35% | -3.23% | -28.11% | |
62 Neutral | $6.83B | 11.28 | 2.95% | 3.88% | 2.70% | -24.56% | |
59 Neutral | $100.97M | ― | -15.67% | ― | -4.92% | -13.73% | |
52 Neutral | $26.74M | ― | -39.57% | 40.25% | -8.85% | -397.36% |
* Consumer Cyclical Sector Average
Performance Comparison
ASO
Academy Sports and Outdoors
43.46
-9.52
-17.97%
BBY
Best Buy Co
73.02
-10.47
-12.54%
BGFV
Big 5 Sporting Goods
1.24
-2.02
-61.96%
DKS
Dick's Sporting Goods
180.75
-30.99
-14.64%
SPWH
Sportsman's Warehouse
3.02
-0.04
-1.31%
ETSY
Etsy
63.81
-2.26
-3.42%
Academy Sports and Outdoors Corporate Events
Executive/Board ChangesShareholder Meetings
Academy Sports Approves Governance Changes at Annual Meeting
Neutral
Jun 5, 2025
On June 5, 2025, Academy Sports and Outdoors, Inc. held its 2025 Annual Meeting where stockholders approved significant amendments to the company’s governance structure. These included removing supermajority voting requirements, declassifying the board for annual director elections starting in 2026, and adding a provision to exculpate certain officers from liability under specific circumstances. Additionally, the stockholders elected three Class II directors, ratified Deloitte & Touche LLP as the independent auditor, and approved executive compensation for fiscal year 2024. Monique Picou was appointed to the Nominating and Governance Committee of the Board.
The most recent analyst rating on (ASO) stock is a Buy with a $72.00 price target. To see the full list of analyst forecasts on Academy Sports and Outdoors stock, see the ASO Stock Forecast page.
Executive/Board Changes
Academy Sports and Outdoors Board Member Resigns
Neutral
May 9, 2025
On May 5, 2025, Scott Boatwright resigned from his position as an independent Class III member of the Board of Directors at Academy Sports and Outdoors, Inc., effective immediately. Following his resignation, the Board reduced its size from eleven to ten members. The resignation was not due to any disagreements with the company’s operations or policies.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.