Academy Sports + Outdoors Reveals Q2 2024 Financial Performance
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Academy Sports + Outdoors Q2 2024 Financial Overview
KATY, Texas — Academy Sports and Outdoors, Inc. (NASDAQ: ASO) has announced its financial results for the second quarter that ended recently. The company reported a net sales decline of 2.2% compared to the prior year, with comparable sales decreasing by 6.9%. Despite these challenges, the company’s GAAP diluted EPS was $1.95, and adjusted diluted EPS reached $2.03.
Operational Highlights
During this quarter, Academy launched several strategic initiatives, including the opening of nine new stores, enhancing its omni-channel capabilities with services like Door Dash, and engaging customers with a newly launched loyalty program. Steve Lawrence, the CEO, emphasized the company's focus on improving traffic and conversion rates both online and in-store. He mentioned, "Our inventory discipline has led to a gross margin expansion of 50 basis points, and we have successfully reduced units per store by 5%." The company remains focused on long-term growth through responsible investments.
Key Financial Metrics
Here are some key financial results for the second quarter:
Net Sales: $1,549.0 million
Comparable Sales: Decreased by 6.9%
Income Before Income Tax: $186.5 million
Net Income: $142.6 million
Year-to-Date Performance and Guidance
For the year-to-date period ending August 3, 2024, net sales are reported at $2,913.2 million, showing an advance in performance metrics. The company noted a comparable sales decrease of 6.4%. The focus for the remaining year is on driving growth through strategic capital allocation while managing expenses and maintaining a healthy balance sheet.
Updated Financial Guidance
Academy Sports + Outdoors is also revising its guidance for fiscal 2024. The net sales expectation for the full year is set between $5,895.0 million to $6,075.0 million. The company anticipates sales growth will face challenges due to ongoing economic difficulties and shifting customer behaviors.
Shareholder Value and Capital Returns
In line with its commitment to shareholder value, the board of directors announced a quarterly cash dividend of $0.11 per share. The dividend reflects the company's strong cash generation capability and commitment to return capital to shareholders.
Store Expansion
Academy has been active in expanding its physical footprint, with three new store openings in the first half of 2024 and plans to launch a total of 15 to 17 stores throughout the year. This will bolster its presence in existing markets and potentially penetrate new territories.
Looking Ahead
Carl Ford, the CFO, noted that while the second quarter presented hurdles, the company’s strong cash generation and disciplined inventory management provide a solid basis for future growth. He stated, "We are committed to managing our operating expenses while investing in our future. With a healthy balance sheet, we look forward to deploying our capital to enhance shareholder value strategically." The focus remains on maintaining a robust gross margin while enhancing store operations and customer engagement strategies.
Frequently Asked Questions
What were Academy Sports + Outdoors' net sales for Q2 2024?
Academy Sports + Outdoors reported net sales of $1,549.0 million for Q2 2024.
How did comparable sales perform in Q2 2024?
In Q2 2024, comparable sales declined by 6.9%.
What is the company’s outlook for fiscal 2024?
The company has revised its guidance for fiscal 2024, expecting net sales between $5,895.0 million and $6,075.0 million.
What strategic initiatives has Academy implemented?
Academy opened nine new stores, introduced omni-channel enhancements like Door Dash, and launched a new customer loyalty program in Q2 2024.
What is the amount of the quarterly dividend declared?
The Board of Directors declared a quarterly cash dividend of $0.11 per share.
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