Dive Brief:
- Academy Sports and Outdoors, Inc. saw its third-quarter net sales dip 3.9% year over year to $1.34 billion, according to the company’s Q3 earnings report released Tuesday.
- The retailer’s comparable sales also dropped by 4.9% from last year. Its net income fell by 34.2% year over year to $65.8 million, according to an earnings release.
- The company lowered its fiscal year 2024 guidance slightly as a result and now expects for its net sales to reach between $5.9 billion and $5.94 billion, a decline of up to 4.3%. It also narrowed its comparable sales guidance to be down between 5% and 6% for the year.
Dive Insight:
As Academy Sports and Outdoors faces declining sales, the retailer is expanding its product assortment with a key brand.
In an earnings call with analysts, CEO Steve Lawrence said the company is expanding its Nike offerings in more than 140 stores in Q1 2025. The company will integrate “full assortments” of Nike men’s, women’s and kids footwear, apparel, accessories and sporting goods into its lineup in April, he said, calling it “one of the most meaningful launches in Academy’s history.”
The sporting goods retailer also said it plans to open between 20 and 25 stores in fiscal year 2025. This year, the company opened eight new locations in Q3, and another five early in Q4, the release said. Earlier this year, the company said it wants to operate more than 800 stores over the long term, with 180 openings over the next five years.
In addition to building out its physical store footprint, the retailer has been trying to reach shoppers seeking fast deliveries. In June, Academy Sports and Outdoors tapped into DoorDash’s on-demand delivery service to transport clothing, shoes, sporting goods, outdoor recreational equipment and other items from its stores.
Also in Q3, the board of Academy Sports and Outdoors approved a replacement stock repurchase program, which allows the company to buy back up to $700 million of its outstanding common stock over the next three years. Lawrence said in a statement that the move “reflects our strong sustainable cash flow generation” and confidence in the business.
