Academy Sports & Outdoors (ASO) Q4 2023 earnings summary

Executive summary

• FY22 net sales fell 5.6% to $6.395B as comparable sales declined 6.4%; profitability remained strong, with gross margin of 34.6% and net income of $628.0M.

• Strategic priorities include expanding the store base, strengthening omnichannel, improving existing-store productivity, scaling the supply chain, and investing in the retail team.

Financial highlights

• Net sales were $6.395B, down 5.6% YoY; gross margin was $2.213B, down 5.9%, and operating income was $846.5M, down 6.8%.

• Net income was $628.0M, down 6.5% YoY; diluted EPS was $7.49 versus $7.12.

• Adjusted EBITDA was $994.7M versus $1.074B; Pro Forma Adjusted diluted EPS was $7.70 versus $7.60.

• Adjusted free cash flow was $443.2M versus $597.2M; operating cash flow was $552.0M, down from $673.3M.

Outlook and guidance

• FY23 plans call for 13–15 new stores and capital expenditures of $200M–$250M, allocated 55% to new stores, 25% to corporate/e-commerce/IT, and 20% to existing stores and distribution centers.

• Long-range plan through 2027 targets a 50% larger store base across existing and new markets, alongside omnichannel growth and improved productivity of existing stores.

• Cash, internally generated funds, and ABL availability are expected to cover anticipated requirements for at least the next 12 months.