Academy Sports & Outdoors Posts Strong Q4 Results Amid Challenging Holiday Season
Academy Sports & Outdoors, a leading sports retailer in the United States, reported a solid fourth quarter (Q4) 2024, with net sales declining by just 6.6% to $1.68 billion. The company's CEO, Steve Lawrence, attributed this performance to strategic planning and execution despite navigating a compressed holiday calendar and constrained consumer spending power.
Lawrence noted that the first two weeks in November were soft, but the company saw a strong rebound later in the month with its largest Black Friday sales event in history. This momentum continued throughout the remainder of the holiday season and into January, with every division running a positive comp sales gain in December. However, sales did soften in the last two weeks of the quarter due to winter storms across the company's footprint.
The company's Outdoor category posted total net sales growth of 2% versus last year, driven by solid increases across hunting, fishing, and camping businesses. Key national brands such as YETI and Stanley drove giftable business, while private brands like Monarch and Redfield saw strong value messaging. Apparel was the second-best performing category, with net sales down 1% to last year, rebounding from a weaker Q3 performance due to warmer temperatures.
Sports & Recreation net sales also improved versus prior-year-to-date trends, with Q4 finishing down 1%. The company had a well-planned promotional cadence in key giftable categories like kids' bikes and grills. Fitness business improved based on focus on lower AUR (average unit retail) giftable items, and footwear business saw improvement, driven by strong performance from ASICS, New Balance, and Crocs.
Lawrence expressed confidence in the company's strategy and execution, stating that Q4 results exceeded midpoint guidance for both net sales and adjusted earnings per share. He also highlighted the importance of being in stock and at the right price on key items and categories that over-index during holidays.
The company's CEO emphasized the need to stay focused on executing strategies that drive growth and profitability, despite market challenges. With a solid Q4 performance under its belt, Academy Sports & Outdoors is poised for continued success in 2025.
