KATY, Texas - Academy Sports and Outdoors Inc. (NASDAQ:ASO) reported third-quarter results that fell short of analyst expectations and lowered its full-year guidance, sending shares down 4% in premarket trading Tuesday.
The sporting goods retailer posted adjusted earnings per share of $0.98, missing the consensus estimate of $1.30. Revenue declined 3.9% YoY to $1.34 billion, below analysts' projections of $1.39 billion. Comparable sales fell 4.9% in the quarter.
Academy Sports cut its fiscal 2024 outlook, now expecting earnings per share of $5.80-$6.10, down from its previous forecast of $5.75-$6.50 and below the $6.18 consensus. The company narrowed its full-year revenue guidance to $5.89-$5.94 billion, compared to its prior range of $5.895-$6.075 billion and the $6 billion analyst estimate.
"We delivered third quarter sales in line with expectations and were encouraged to see an improvement in comp sales trends versus the first half of the year," said CEO Steve Lawrence. He noted the company's Outdoor division saw a 7% sales increase in Q3.
Despite the disappointing results, Academy Sports highlighted strong cash flow generation, with year-to-date adjusted free cash flow up 67% to $252 million. The company also announced a new $700 million share repurchase program.
The retailer opened 16 new stores so far in fiscal 2024 and plans to open 20-25 locations in fiscal 2025, representing about 7.5% annual unit growth.
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