Academy Sports & Outdoors First Quarter 2023 Report

Academy Sports & Outdoors (ASO) reported first quarter sales and earnings which were below last year’s first quarter. Sales were $1.4 billion compared to last year’s $1.5 billion a 5.7% drop. Earnings per share dropped 29% to $1.19 from $1.69. The macro-economic environment caused customers to cut back spending. There also was unfavorable weather and an especially strong hunting season last year which did not repeat this year.

The new CEO Steve Lawrence was “confident that our well-established business model coupled with our strong balance sheet and our long-range plan will drive long-term success. In the near term, we are taking action to help drive the business in this economic environment.”

During the first quarter ASO opened one new store bringing the total number of stores to 269 units. The store is in Lafayette, Ind. and will be one of 13 to 15 store openings planned for 2023.

Keeping the economic environment in mind, the company has revised its forecast for fiscal 2023. The new forecast looks for sales to range between $6,175 million and $6,365 million and diluted shares between $6.80 and $7.50. In fiscal 2022 the company reported diluted earnings of $7.70. The fiscal year includes a 53^rd week, which the company estimates will contribute about $85 million to sales.

POSTSCRIPT: ASO now has a new executive team headed by Steve Lawrence CEO, and Michael Mullican who is President and acting Chief Financial Officer. Ken Hicks now is Executive Chairman. It is a strong team that will try to promote in the new locations as well as the existing stores. ASO is a leading sporting good and outdoor recreation retailer. The company plans to expand 80 to 100 stores and carries national brands and quality private label merchandise.