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Academy Sports earned $2.31 per share this quarter, well ahead of the $2.07 analysts expected. While total sales grew about 3 percent to $1.65 billion, the real strength came from online shopping, which jumped nearly 13 percent. This digital growth is helping the company reach customers even as lower-income households pull back on spending.
Management raised its full-year profit forecast, signaling confidence that they can keep margins high through cost discipline and a focus on private-label brands. The company is also continuing its physical expansion, opening three new stores this quarter and seeing positive early results from its new locations. For long-term owners, the ability to grow profits and raise guidance in a tough retail environment supports the view that this is a resilient business gaining market share.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
Academy Sports has hired Matthew Pasch as its new Executive Vice President and Chief People Officer. He will lead the company’s efforts in hiring, training, and managing its workforce across its retail stores and corporate offices.
While this is a senior leadership role, it is a standard executive appointment and does not change the company's broader strategy or financial outlook. It is worth noting as part of the management team that will oversee the company's ongoing store expansion plan.
Source: PRNewsWire
Telsey Advisory lowered its price target for Academy Sports from $65 to $60. A price target is what an analyst thinks the stock will be worth in the future. Even with the lower target, the firm still sees the stock as undervalued compared to its current price of about $48. This was a routine adjustment before the company reported its latest results. The average target across all analyst firms now sits at $58, suggesting most professional researchers believe the stock has room to rise from here.
Source: Telsey Advisory
Academy is deepening its tie with Ariat by opening 200 dedicated shops within its existing stores. These spaces will focus on western and work apparel and footwear, categories that often carry higher loyalty and consistent demand than general sporting goods.
This move fits into the company's strategy of using well-known national brands to draw shoppers into its physical stores. By dedicating specific floor space to a popular brand like Ariat, Academy is trying to make its stores a destination for specific needs rather than just a general gear shop.
Source: PRNewsWire
Academy has opened two new locations in Ohio and Texas and plans to open nine more this quarter. This expansion is a core part of the company's growth plan to move beyond its traditional base in the South and into new regions like Oklahoma and the Midwest.
For a retailer, opening new stores is the most direct way to grow sales, but it also costs a lot of cash upfront. The fact that Academy is opening 11 stores in a single quarter shows management is confident that their model of large, value-focused sporting goods stores can win in new neighborhoods.
Source: PRNewsWire
Management has a choppy track record of hitting their targets, but this latest quarter shows they can still grow profits even when store traffic is slightly down.
| Expectation | |
|---|---|
| EPS | $2.07 |
| Revenue | $1.65B |
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