KATY, Texas – Academy Sports and Outdoors, Inc. (NASDAQ:ASO) reported second quarter earnings that slightly beat expectations, but revenue fell short of estimates as the sporting goods retailer faced a challenging economic environment. The company also lowered its full-year guidance.
ASO shares were trading 1% higher in Tuesday’s premarket session following the report.
Academy Sports posted adjusted earnings per share of $2.03, edging past the analyst consensus of $2.02. However, revenue declined 2.2% year-over-year to $1.55 billion, missing estimates of $1.58 billion. Comparable sales fell 6.9% in the quarter.
“Sales for the second quarter were more challenging than expected, impacted by a tough economy, a temporary distribution center backlog related to going live with a new warehouse management system and by a very active storm season across key portions of our footprint,” said CFO Carl Ford (NYSE:F).
The company lowered its full-year revenue guidance to a range of $5.90-$6.08 billion, down from its previous outlook of $6.07-$6.35 billion. Academy now expects comparable sales to decline 3-6% for the year, compared to its prior forecast of -4% to +1%.
Despite the revenue miss and lowered outlook, Academy reaffirmed its full-year gross margin guidance of 34.3-34.7%.
CEO Steve Lawrence noted the company is making progress on strategic initiatives, including opening new stores and enhancing its omnichannel capabilities. Academy opened one new store in Q2 and plans to open 15-17 total locations in fiscal 2024.
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