Shares of Academy Sports and Outdoors (NASDAQ:ASO) slipped more than 7% in premarket trading on Tuesday after the retailer reported second-quarter results that came in below analyst expectations, despite recording positive comparable sales for the first time in several quarters.
The sporting goods chain posted adjusted earnings per share of $1.94, missing the consensus estimate of $2.16 by $0.22. Revenue reached $1.6 billion, matching analyst projections and marking a 3.3% year-on-year increase. Comparable store sales rose 0.2%, a marked turnaround from the 6.9% decline seen in the same quarter last year. Online sales performed strongly, surging 17.7%.
“We were pleased to see sales inflect to a positive comp in the second quarter, driven by steady improvements in the business that are a result of the progress we continue to make against our strategic initiatives,” said Steve Lawrence, Chief Executive Officer. “Customers are gravitating to our diversified assortment and our value proposition is resonating with them.”
Academy also updated its fiscal 2025 guidance, raising the lower end of its revenue forecast while keeping the upper end unchanged. The company now anticipates revenue of $6 billion to $6.265 billion, above the analyst consensus of $6.09 billion. Adjusted EPS is expected to range from $5.60 to $6.30, higher than the previous guidance of $5.45 to $6.25 and slightly above the analyst estimate of $5.85.
During the quarter, the retailer opened three new locations in Florida, Virginia, and West Virginia, bringing its total store count to 306 across 21 states. Academy plans to open a total of 20 to 25 stores in fiscal 2025.
The company highlighted that it has largely mitigated the effects of incremental tariffs through measures such as partnering with factories and vendors, relocating production to alternative countries, and adjusting pricing strategies.
Finally, ASO’s Board of Directors declared a quarterly cash dividend of $0.13 per share, payable on October 9 to stockholders of record as of September 11.
Academy Sports and Outdoors stock price
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