Academy Sports & Outdoors (ASO) 2021 Q1 Earnings Report

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 (see best fitness stocks to buy). 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.

The Texas-based sporting goods store chain recently announced solid financial results for the first quarter amid strong apparel and footwear sales. Academy Sports reported earnings of $1.84 per share for the three months ended May 1, versus a loss of 14 cents per share in the comparable period of 2020. On an adjusted basis, the company earned $1.89 per share, crushing the consensus forecast of 83 cents per share.

Revenue came in at $1.58 billion, compared to $1.14 billion in the year-ago quarter. Analysts, on average, were expecting Academy Sports to report revenue of $1.58 billion. Comparable sales in the quarter jumped 39 percent on a year-over-year basis.

Speaking on the results, CEO Ken Hicks said, “The Academy Sports + Outdoors team again generated record-breaking sales and profits, while delivering fun to our customers. The strategic initiatives implemented over the last few years, a shift in consumer spending into sports and outdoor categories, government-issued stimulus checks, the addition of new customers and more frequent shopping by existing customers are driving consistent growth. We believe our broad, value-based assortment, available through a true omnichannel experience, positions us to continue to capitalize on these market trends.”

Academy Sports also raised its earnings outlook for fiscal 2021. It expects to report earnings in the range of $4.15 per share to $4.50 per share for the full year, up from its previous forecast between $2.70 per share to $2.95 per share.