Tue, Jun 11, 8:14 PM (88 days ago)
Academy Sports and Outdoors, Inc. reported a 1.4% decrease in net sales to $1,364.2 million for the quarter ended May 4, 2024, down from $1,383.6 million in the prior year. This decline was driven by a 5.7% decrease in comparable sales, partially offset by sales from new store openings. Gross margin decreased by 2.4% to $455.8 million, primarily due to higher promotional activity and increased inventory valuation adjustments, despite lower freight costs and reduced inventory shrinkage. SG&A expenses rose by 3.7% to $353.4 million, attributed to investments in new stores, leading to a 130 basis point increase in SG&A as a percentage of sales. Operating income fell by 18.9% to $102.4 million. Interest expense decreased by 15.5% due to a voluntary prepayment of $100 million on the Term Loan. Net income dropped by 18.6% to $76.5 million, with diluted earnings per share at $1.01. The company generated $199.7 million in operating cash flow, up significantly from $52.1 million in the prior year, primarily due to changes in working capital. Capital expenditures decreased to $32.2 million. The company repurchased approximately 2 million shares for $122.4 million and declared a quarterly dividend of $0.11 per share. The balance sheet remains strong with $378.1 million in cash and cash equivalents.