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Academy Sports and Outdoors narrowed its fiscal 2024 guidance after experiencing some challenges in the month of October.
The Katy, Texas-based retailer reported that net sales decreased 3.9 percent in the third quarter to $1.343 billion, down from $1.397 billion the same time last year. Net income in the period was $65.8 million, a 34.2 percent decline from $100 million in Q3 2023.
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Academy said that it opened eight new locations during the third quarter and another five new stores early in the fourth quarter, bringing the company’s total store count to 298. To date in fiscal 2024, the company has opened a total of 16 new stores, equating to approximately 6 percent annual unit growth, in line with its stated plans for the year.
The company added that it plans to open an additional 20 to 25 stores in 2025, representing approximately 7.5 percent annual unit growth at the midpoint.
Steve Lawrence, chief executive officer of Academy Sports, told analysts on the company’s earnings call on Tuesday that the declines seen in Q3 were due to some unseasonably warm temperatures, which persisted throughout the entire month of October across its footprint, negatively impacting the company’s seasonal businesses and having roughly 140 basis point drag comps. In addition, Academy noted that it lapped the Rangers World Series run from last year, which also negatively impacted its comp in Q3 by roughly 120 basis points.
“We also saw a continued very active storm season during Q3 with Hurricane Helene and Milton hitting in October,” Lawrence added. “I’m incredibly impressed by the resilience of our team members and commend them on their tireless efforts navigating these challenging circumstances.”
Looking at the results by division, the CEO noted that its outdoor business was Academy’s best-performing category, posting total sales growth of 4 percent versus last year, led by continued strength in its camping and hunting businesses. Footwear was its second-best performing category in the period, which was down 2 percent in Q3.
According to Matt McCabe, executive vice president and chief merchandising officer at Academy, newness across footwear continues to do well for the company. “Koolaburra by Ugg has been a strong performer for us,” McCabe told FN in a call on Tuesday. “We continue to perform well with Nike, and probably our shining star has been Brooks in terms of how much volume we’ve added throughout the year.”