Academy Sports + Outdoors Reports Third Quarter 2022 Results

Academy Sports + Outdoors Reports Third Quarter 2022 Results

There was a real air of confidence as management of Academy Sports + Outdoors spoke about the future of the company. Management had just completed an excellent Black Friday sale day and is confident that holiday sales will go well. In addition, the third quarter was in line with their expectations.

In the third quarter net sales decreased 6.2% from $1.59 billion to $1.49 billion. Comparable sales declined 7.2 percent. The decline was mainly due to a decline In hunting sales within the outdoor division.

In addition, e-commerce grew 10.5% over 2021 third quarter results, and 179 percent compared to 2019. GAAP net income decreased 18.3 percent to $131.7 million compared to $ 161.3 million. Diluted earnings per share were $1.62, a 5.8 percent decrease compared to $1.75 per share in the third quarter of 2021.

Management is very confident of a strong fourth quarter 2022, pointing to apparel classifications and sports classifications that are very much in demand. The company has opened 9 stores in the current fiscal year and now operates 268 stores in 18 states. New store openings for 2023 were not announced. It was indicated that in the first full year of operation, new stores generate a sales volume of about $16 million while more mature stores generate sales of about $25 million.


The company refined their projection for fiscal 2022. Sales are expected to be $6,43 million to $6,49 million, comparable sales -6.0% to -5.0%, Gross Margin rate 34.0 to 34.5, GAAP Net income $610.0 million to $620.0 million and GAAP earnings per share $7.25 to $7.40 per share.

A the ed of the third quarter Academy Sports + Outdoors cash and cash equivalents totaled $318.2 million, with no borrowing under the $1.0 billion credit facility. During the quarter. Net cash provided by operating activities was $50.8 million.

CEO Ken Hicks said: “The third quarter was challenging for Academy, however, we delivered a good profit performance that, while below last year, was in-line with our expectations. Our team continues to execute at a high level in an uncertain environment, delivering results well above pre-pandemic levels on all measures. Our focus is on our long-term growth opportunities in stores and on-line through consistent operational excellence, strong financial discipline and executing our stores and on-line channel expansion plans.”

POSTSCRIPT: The company plans 80 to 100 new stores by the end of 2026. Plans are carefully developed and controls are in place to ensure tight inventory controls and excellent merchandise management. I look for the high end of managements estimates.


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