Academy Sports and Outdoors reported Q2 adjusted EPS of $1.94, missing the analyst consensus estimate of $2.16. Quarterly sales of $1.599 billion (+3.3% YoY) also missed the Street view of $1.614 billion. The company raised its fiscal 2025 adjusted EPS guidance to $5.60-$6.30 and lifted its fiscal 2025 sales outlook to $6.00-$6.265 billion. Shares fell 7.6% to close at $49.50.
Academy Sports and Outdoors, Inc. (ASO) reported its second-quarter (Q2) fiscal 2025 results, revealing a decline in earnings per share (EPS) and revenue, while also updating its full-year guidance. The company's adjusted EPS came in at $1.94 per share, missing the analyst consensus estimate of $2.16 [1]. Quarterly sales totaled $1.599 billion, up 3.3% year-over-year (YoY), but fell short of the Street view of $1.614 billion [2].
Academy Sports and Outdoors' adjusted net income for Q2 was $125.4 million, a decrease of 12.1% from the same period last year. The company attributed this decline to increased selling, general, and administrative (SG&A) expenses, which rose to 25.3% of sales compared to 23.8% last year. The company also opened three new stores in Florida, Virginia, and West Virginia, bringing its total to 306 locations across 21 states [2].
Looking ahead, Academy Sports and Outdoors has revised its fiscal 2025 guidance. The company now expects adjusted EPS of $5.60 to $6.30, up from its previous outlook of $5.45 to $6.25. Additionally, the company has lifted its fiscal 2025 sales outlook to $6.00 to $6.265 billion, compared to its earlier guidance of $5.970 to $6.265 billion [1].
Despite the mixed results, shares of Academy Sports and Outdoors fell 7.6% to close at $49.50 in the pre-market trade on the Nasdaq. The company's focus on value and strategic initiatives, such as eCommerce growth and new store openings, appears to be gaining traction, but profitability remains a concern.
References:
[1] https://www.nasdaq.com/articles/academy-sports-and-outdoors-inc-q2-profit-decreases-misses-estimates
[2] https://www.stocktitan.net/news/ASO/academy-sports-outdoors-reports-second-quarter-fiscal-2025-results-7xxv9n94o6bw.html
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