Academy Sports & Outdoors (ASO) Q4 2022 earnings summary

Executive summary

• FY2021 delivered record net sales of $6.77B, up 19.1% YoY, and record net income of $671.4M; comparable sales rose 18.9%.

• Growth spanned all four merchandise divisions and geographic regions, with double-digit full-year sales growth in each; comparable sales remained positive for 10 consecutive quarters through Q4.

• Q4 net sales were $1.808B, gross margin $584.1M, operating income $198.2M, and net income $141.8M.

Financial highlights

• FY2021 net sales rose 19.1% to $6.773B; gross margin increased 35.6% to $2.351B, and operating income climbed 116.0% to $907.9M.

• FY2021 net income was $671.4M, up 117.4% YoY; diluted EPS was $7.12, while Pro Forma Adjusted diluted EPS was $7.60.

• Q4 net sales were $1.808B vs. $1.597B in Q4 2020; operating income was $198.2M vs. $141.0M, and net income was $141.8M vs. $91.5M.

• Operating cash flow was $673.3M and Adjusted Free Cash Flow was $597.2M for FY2021, compared with $1.012B and $978.5M, respectively, in FY2020.

Outlook and guidance

• FY2022 plans called for at least eight new stores; the longer-term target was 80–100 openings over five years, resuming growth after a two-year pause.

• FY2022 capital expenditures were expected to be ~$140M: 50% for corporate, e-commerce and IT; 30% for new stores and relocations; 20% for existing stores and distribution centers.

• Growth priorities include omnichannel, customer experience, supply-chain efficiency, IT capability and talent development; management expected isolated recreation demand to support a lasting customer-base benefit.