Academy Sports + Outdoors, Inc. (Nasdaq: ASO) is a prominent full-line sporting goods and outdoor recreation retailer in the United States. As of February 1, 2025, it operates 302 stores across 21 states, offering a wide range of products including outdoor gear, apparel, and footwear. Academy’s financial results for the fourth quarter of fiscal 2024 reveal a decline in sales amidst market challenges.

In the fourth quarter, net sales totaled $1.68 billion, a decrease of 6.6% compared to $1.79 billion in the same period last year. When adjusted for the comparative time frame due to an extra week in the previous year, sales were essentially flat. Comparable sales fell by 3% during the quarter. Fourth quarter net income reached $133.6 million, down 20.6% from $168.2 million year-over-year, while diluted earnings per share stood at $1.89, a decline of 14.5% from $2.21 in the prior year.

Adjusted net income, excluding stock-based compensation of $6 million, was approximately $139 million or $1.96 in adjusted diluted earnings per share, compared to $2.21 a year earlier. Gross margin for the fourth quarter was 32.2%, which represented a decrease of 110 basis points year-over-year. The decline was attributed to higher freight and distribution costs, as well as markdown actions taken to transition apparel inventory for the upcoming season. Selling, general and administrative (SG&A) expenses decreased $7.5 million year-over-year, yet increased 110 basis points as a percentage of sales due to strategic investment initiatives.

For the fiscal year 2024, total net sales amounted to $5.93 billion, down 3.7% from $6.16 billion in 2023. Comparable sales for the full year fell 5.1%. Net income for the year was $418.4 million, also down 19.4% from $519.2 million in the previous year. The company reported a diluted earnings per share of $5.73, down 14.5% compared to the previous year’s $6.70.

Looking ahead, Academy Sports outlined its guidance for fiscal 2025, anticipating net sales in the range of $6.1 billion to $6.3 billion. This reflects a potential increase of approximately 4.2% from fiscal 2024. The company expects comparable sales to range from minus 2% to plus 1%. The anticipated gross margin rate is forecasted to be between 34.0% and 34.5%, indicating a potential improvement over the previous year.

Capital expenditures are anticipated to be between $220 million and $250 million as the company plans to open 20 to 25 new stores during the year. Academy’s adjusted net income for 2025 is projected to be between $400 million and $435 million, with adjusted diluted earnings per share expected to be in the range of $5.75 to $6.20. Additionally, the company plans to continue its share repurchase program, with approximately $566 million remaining on the authorization.

Despite experiencing decreases in sales and profits during 2024, Academy Sports is leveraging various initiatives, such as the anticipated launch of the Jordan brand in stores, new technology rollouts, and expansion of its private brand offerings, to drive growth and improve its operational performance as it moves forward into 2025.