Academy Had Strong 4th Quarter 2021 And Vital Plans For The Future

Academy Sports + Outdoors reported 4h quarter 2021 results Comparable store sales increased 13.1% and full year 2021 increased 18.9%. Fourth quarter earnings per share were $1.57 a 61.9% increase over the previous year, and full year 2021 earnings per share were $7.12 an 87.9% increase over 2020.

Ken Hicks, Chairman, President and CEO of Academy Sports + Outdoors called 2021 an “extraordinary year and he is “excited about the future growth prospects”. The company is excited about the 8 stores that will open this year. The first store will open in Atlanta, Ga. The company will accelerate the growth of its new stores by planning 80 to 100 stores in the next five years. This year stores will be located in Virginia, West Virginia, Florida, Georgia, Indians, Kentucky and Texas.

The company provided initial guidance for 2022 which included comparable sales decrease of (4.1%) to (1.0%); net income of $590 million to $640 million and GAAP earnings per share fully diluted $6.55 to $7.10. However, with the initiatives the company discussed, I think this is a conservative projection.

The company discussed several initiatives that are underway to improve the company’s performance, these include improvement of supply chain, a new planning and allocation program and added application on the internet. Management stressed the planning and allocation program as being essential in creating better timing for merchandise events. As an example, they cited that football cleats will not sell in March.

Management stressed that the company is a value player and that much of its merchandise is value priced. During the last two years the company deemphasized merchandise sales since many customers adopted a lifestyle which included outdoor activities. Academy stores had the desired merchandise and was a destination store for them.

The company expects a smoother supply chain this year, as it sees an improvement in deliveries. The strong relationship with major vendors also assures management of quicker deliveries.

In the fourth quarter e-commerce sales grew 22.7% compared to the previous year quarter and 97.2% over 2019, the last year before the pandemic. For the full year 2021 e-commerce sales increased 6.2% compared to 2020 and increased 153.1% compared to 2019.

During the fourth quarter the company made open market purchases of $1.6 million shares for $65.6 Million. In the full year 2021 the company repurchased and retired 10.6 million shares for $411.4 million. Directors also announced, after the end of the quarter, its first quarterly dividend of $0.0075 payable April 14, 2022 to stockholders at the close of business on March 17, 2022.

POSTSCRIPT: Academy Outdoors+ Sports under the strong management team lead by Ken Hicks has the opportunity to capture a major share of the sports and outdoor equipment market. Many of the merchandising pieces are falling into place and we can anticipate further growth of the company as planning and allocation programs are implemented.