ASO, BRCC and FSLR have been added to the Zacks Rank #5 (Strong Sell) List on May 23, 2025.
ASO hits the 300 stores milestone with new store openings, including two debut markets. Dive in to get a clear picture.
I am downgrading Academy Sports and Outdoors (ASO) to a hold rating due to a weakened macro backdrop and potential margin pressure. ASO's 4Q24 results showed concerning signs: gross margin declined 110 bps, and EBIT margin dropped to 9.6%, despite a decrease in SG&A dollars. Consumer spending has slowed, impacting ASO's discretionary product sales, and management's aggressive store expansion could further pressure margins.
ASO's fiscal fourth-quarter margins are affected by higher freight and distribution costs and lower merchandise margins.
On Friday, JPMorgan analyst Christopher Horvers reiterated the Neutral rating on Academy Sports and Outdoors, Inc. ASO, raising the price forecast to $54 from $52.
While the top- and bottom-line numbers for Academy Sports and Outdoors (ASO) give a sense of how the business performed in the quarter ended January 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Academy Sports and Outdoors, Inc. (NASDAQ:ASO ) Q4 2024 Earnings Conference Call March 20, 2025 10:00 AM ET Company Participants Dan Aldridge - Vice President, Investor Relations Steve Lawrence - Chief Executive Officer Carl Ford - Chief Financial Officer Conference Call Participants Anthony Chukumba - Loop Capital Christopher Horvers - JPMorgan Brian Nagel - Oppenheimer Kate McShane - Goldman Sachs Greg Melich - Evercore Michael Lasser - UBS Simeon Gutman - Morgan Stanley Operator Good morning, and welcome to the Academy Sports and Outdoors Fourth Quarter Fiscal 2024 Results Conference Call. The call is being recorded and all participants are in a listen-only mode.
Academy Sports and Outdoors, Inc. (ASO) came out with quarterly earnings of $1.96 per share, beating the Zacks Consensus Estimate of $1.82 per share. This compares to earnings of $2.21 per share a year ago.
Academy Sports and Outdoors' fiscal fourth-quarter 2024 results are likely to indicate dismal comparable sales performance.
ASO stock is set to benefit from rewarding shareholders by hiking quarterly dividend payments. Know more about the recent hike.
Academy Sports and Outdoors is expanding aggressively, planning to open 160-180 new stores over five years, leveraging favorable demographics in high-growth markets. Despite 11 quarters of negative same-store sales, ASO has consistently generated positive free cash flow, highlighting operational efficiency. TTM FCF yield is 11%. For fiscal year 2025, I expect ASO to deliver same-store sales growth in the low-single digits. This coupled with new store openings should push the overall sales growth to mid-single digits.
Academy Sports and Outdoors is a small-cap retailer with a wide economic moat and excellent value offering to customers. The company operates 290 stores across 18 states, offering a broad range of sports and outdoor products which outpaces the comparative offerings of rivals. Despite a tough Q3, Academy maintains strong financials with impressive margins, robust cash flow, and a conservative balance sheet.