Academy Sports + Outdoors Reports 2023 Fiscal Results

Academy Sports + Outdoors just reported full year fiscal 2023 sales and earnings. Many customers were reluctant to spend a lot of money since inflation and economic uncertainty caused a heavy headwind that negatively impacted sales. The company reported sales of $6,159 million compared to last year’s $6, 395 million. That is a -3.7% decrease. Earnings per share also declined, from $7.49 to $6.70, a -10.5 % decrease.

During the year, the company opened 14 new stores and plans to add 15 to 17 new units in fiscal 2024. Management indicated that customers were very interested in the private brands the company carried, which often offer quality merchandise at a lower price.

The company is planning to have a new loyalty program by the end of the year. It will connect the credit card with the program and should encourage more customer spending at the store.

The company reminded investors that the fourth quarter and full year 2023 included 14 and 53 weeks respectively, compared to the traditional 13 and 52 weeks in the fourth quarter and fiscal 2022.

“In 2023, topline sales did not meet our expectations, but we were pleased with the Q4 trajectory change. For the third consecutive year, we achieved double digit operating margins and a gross margin rate above 34 percent, underscoring the structural changes Academy has made to improve margins. The company also delivered stakeholder value by purchasing $204 million of stock, paying $27 million in dividends and reducing the debt by $103 million” stated Carl Fold, EVP and CFO
CFO
. He went on to say, “In 2024, we are focused on our long-range strategy of growing the Company by opening new stores, growing omnichannel sales, customer data acquisition and utilization, and improving our supply chain. Utilizing our strong balance sheet, we will invest in each of these strategic areas while we navigate the current consumer landscape because we believe that these initiatives will drive our long-term success.”

Management then shared a guidance for fiscal 2024. Sales will be between $6,070 million and $6,350 million, and net earnings per diluted share are projected to range between $5.90 and $6.90.

POSTSCRIPT: Academy Sports + Outdoors is growing fast. It has grown to 282 stores in 18 states. Expansion with the addition of 15 or more stores requires more logistics coordination, supply chain enhancements, and careful management supervision. The management is new, having recently taken over from Ken Hicks. The first full year will be 2024 for the new management team.