Academy Sports Boosts FY23 Earnings Outlook As Q2 Earnings Tops Estimates; Stock Up 11%

(RTTNews) - Sporting goods retailer Academy Sports and Outdoors, Inc. (ASO) on Thursday reported that net income for the second quarter declined to $157.1 million or $2.01 per share from $188.8 million or $2.22 per share in the prior-year quarter.

Excluding items, adjusted net income for the quarter were $2.09 per share, compared to $2.28 per share in the prior-year quarter.

Net sales for the quarter declined 6.2 percent to $1.58 billion from $1.69 billion in the same quarter last year. Comparable sales declined 7.5 percent.

On average, analysts polled by Thomson Reuters expected the company to report earnings of $1.99 per share on revenues of $1.58 billion for the quarter. Analysts' estimates typically exclude special items.

Looking ahead to fiscal 2023, the company now projects earnings in a range of $6.65 to $7.35 per share and adjusted earnings in a range of $6.95 to $7.65 per share. Previously, the company expected earnings in the range of $6.50 to $7.20 per share and adjusted earnings in a range of $6.80 to $7.50 per share.

However, the company reiterated its outlook for sales between $6.175 billion and $6.365 billion, comparable sales decline of 7.5 to 4.5 percent.

The Street is looking for earnings of $6.92 per share on revenues of $6.23 billion for the year.

The Company also expects to open six stores in the third quarter and five to six in the fourth quarter and a total of 120 to 140 stores over the five fiscal year period ending with fiscal 2027.

On Wednesday, Academy announced that its Board of Directors declared a quarterly cash dividend of $0.09 per share of common stock, payable on October 11, 2023 to stockholders of record as of the close of business on September 13, 2023.

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