Academy Sports and Outdoors (NASDAQ:ASO) reported lower-than-anticipated numbers for the fourth quarter.
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In response, the sporting goods and outdoor recreation retailer’s share price has dropped by around 12% today. In Q4, ASO’s revenue increased by 2.8% year-over-year to $1.79 billion, falling $10 million short of expectations. The EPS of $2.21 missed estimates by $0.10. Additionally, the company’s comparable sales contracted by 3.6% due to challenging macroeconomic conditions.
In Q4, ASO’s top line ticked up by 2.8% year-over-year to $1.79 billion. However, the figure fell short of expectations by $10 million. EPS of $2.21 missed the cut by $0.10. Additionally, the company’s comparable sales contracted by 3.6% amid challenging macroeconomic conditions.
Expansion Plans
ASO is focused on expanding its footprint by opening seven new outlets in Q4, and 15 to 17 new locations in Fiscal Year 2024. Carl Ford, the EVP and CFO of Academy Sports, noted that the company is focusing on store growth, boosting omnichannel sales, and optimizing the supply chain this year. Omnichannel sales combine online and in-store shopping, which helps enhance customer experience. For instance, customers can order online and pick up in-store or preview items on a mobile app before going to a physical store.
For the full year, the company expects net sales in the range of $6.07 billion to $6.35 billion. EPS is seen landing between $5.90 and $6.90.
Earlier this month, ASO hiked its quarterly dividend by 22% to $0.11 per share. The ASO dividend is payable on April 18, to investors of record on March 26.
What Is the Target Price for ASO?
Despite today’s price decline, shares of the company still remain nearly 35% higher over the past six months. Overall, the Street has a Strong Buy consensus rating on Academy Sports alongside an average ASO price target of $81.63. However, analysts’ views on the stock could see changes following today’s earnings report.
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