Academy Sports Trims Full-Year Outlook After a Mixed Q2
Academy Sports and Outdoors, Inc. (NASDAQ:ASO) reported second-quarter results that sent a split signal. Adjusted earnings per share came in a touch above expectations, but revenue missed, and management lowered its full-year outlook. Put simply: profits edged past the mark, sales didn’t, and guidance moved down.
What the Quarter Showed
Adjusted earnings were $2.03 per share, a penny ahead of the analysts’ consensus of $2.02. Revenue told a different story. Sales fell 2.2% from a year ago to $1.55 billion, short of the expected $1.58 billion. Comparable store sales declined 6.9% in the quarter, underscoring a slower pace in core demand.
What Weighed on Results
CFO Carl Ford pointed to several pressure points that hit performance. A tougher economic backdrop made it harder to convert shoppers. An unexpected backlog at the distribution center tied to the rollout of a new warehouse management system disrupted flow. Add in adverse weather, and the quarter had more headwinds than the team anticipated. Those factors combined to dampen traffic and sales momentum.
Updated Outlook for the Rest of the Year
Given those dynamics, Academy Sports reduced its full-year revenue guidance to a range of $5.90 billion to $6.08 billion, down from the prior $6.07 billion to $6.35 billion. The company also now expects comparable sales to decline between 3% and 6% for the year—an important shift from the earlier view that called for a slight increase.
Margins Holding the Line
Even with the sales reset, management reaffirmed gross margin guidance at 34.3% to 34.7%. Keeping that range intact signals a continued focus on pricing, mix, and discipline as they work through a choppier demand environment.
Where Strategy Goes From Here
CEO Steve Lawrence emphasized staying on offense with targeted growth moves. The company opened one new store in the second quarter and still plans to add 15 to 17 locations in fiscal year 2024. Alongside store growth, Academy Sports is concentrating on strengthening its omnichannel capabilities—meeting customers wherever they choose to shop. Expansion, paired with operational improvements, is the through line as the company navigates uncertainty.
Bottom Line
The quarter was a mixed bag: a small profit beat, a revenue miss, and a reset to guidance. Execution against the updated plan—keeping margins steady while expanding the store base and improving operations—will matter most in the coming quarters. One note, one focus: adapt and follow through.
Frequently Asked Questions
What did Academy Sports earn in Q2?
Adjusted earnings were $2.03 per share, edging past the $2.02 consensus by a penny.
How did revenue trend in the quarter?
Revenue fell 2.2% year over year to $1.55 billion, below the $1.58 billion that analysts expected.
What guidance changes did management announce?
The company lowered its full-year revenue outlook to $5.90 billion to $6.08 billion, down from the prior $6.07 billion to $6.35 billion range.
What’s the new view on comparable sales for the year?
Comparable sales are now expected to decline between 3% and 6% for the year, a shift from an earlier forecast that anticipated a slight increase.
How many new stores are planned?
Academy Sports opened one store in the second quarter and plans to open 15 to 17 additional locations in fiscal year 2024.
