Academy Sports (ASO) Crushed Expectations for Q4

The roots of Academy Sports & Outdoors Inc (NASDAQ:ASO) can be traced back to 1938, when it commenced operations as a military surplus store in San Antonio, Texas. The company later added sports and outdoor equipment to its portfolio and gradually evolved into a leading sporting goods store chain. Today, ASO sells sporting equipment ranging from footwear and apparel to tents and bicycles. Despite being around for several decades, ASO made its public debut in October by pricing its shares at $13 apiece for total proceeds of $203 million.

Academy Sports recently announced strong financial results for the fourth quarter. It reported earnings of 97 cents per share for the three months ended January 30, significantly higher than 24 cents per share in the comparable quarter of 2019. On an adjusted basis, ASO earned $1.09 per share, crushing the consensus forecast of 50 cents per share.

Revenue for the quarter rose 16.6 percent on a year-over-year basis to $1.60 billion, above analysts’ average estimate of $1.58 billion. Comparable sales in the quarter jumped 16.1 percent, higher than the surge of 14.1 percent projected by analysts.

CEO Ken Hicks expressed his satisfaction over the results. Hicks said in a statement, “I am very proud of everything the Academy Sports + Outdoors team members achieved in 2020 as they faced substantial adversity and uncertainty due to the pandemic. Through collaboration, dedication, and innovation, the team produced remarkable results and delivered fun to millions of customers while laying the foundation for future success.”

Looking forward, ASO expects to report earnings in the range of $2.70 per share to $2.95 per share for fiscal 2021, as compared to the consensus forecast of $2.39 per share.

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