Academy Sports and Outdoors Inc., driven by changes in consumer spending, government stimulus measures and its vast assortment in sports and outdoors categories, became profitable in the first quarter of 2021 with a sales increase of 39 , 1% and raised its outlook for this year.
The Katy, Texas-based retailer on Tuesday reported net income of $ 177.8 million for the quarter ended May 1, compared to a loss of $ 10 million during the period last year.
More from WWD
Diluted earnings per share were $ 1.84 compared to a loss of $ 0.14 in the prior year quarter. Pro forma adjusted net income, which excludes the impact of certain non-cash and extraordinary items, increased from $ 0.4 million to $ 182.5 million. Diluted pro forma EPS was $ 1.89, compared to $ 0.01 per share in the prior year quarter.
Net sales of $ 1.58 billion were a record first quarter for the company. Comparable sales increased 38.9%. Sales increased 46.8% compared to the first quarter of 2019.
“The Academy Sports and Outdoors team once again generated record sales and profits, while providing fun for our customers,” said Ken Hicks, President, President and CEO. “The strategic initiatives implemented in recent years, a shift in consumer spending to sports and outdoor categories, government-issued stimulus checks, the addition of new customers and more frequent purchases by existing customers stimulate constant growth.
“We believe that our broad, value-based assortment, available through a true omnichannel experience, positions us to continue to capitalize on these market trends,” said Hicks.
The company said the growth was driven by continued strong, double-digit consumer demand across product categories, including apparel, footwear, and team sports, as well as across the board. geographic footprint of the retailer.
E-commerce sales fell 21% as the website celebrated triple-digit growth in the first quarter of 2020 as consumers switched to online ordering at the start of the pandemic last year. In the past two years, e-commerce sales grew 300% in the first quarter.
Gross margin increased 89.2% to $ 563.7 million, the highest quarterly gross profit in company history. The gross margin rate increased 950 basis points to 35.7% mainly due to improved margins on merchandise through a favorable mix shift, higher average unit sales, fewer promotions and fewer promotions. ‘customs clearance activities, the company said.
The growth in gross margin, combined with 450 basis points of the leverage of selling, general and administrative expenses, generated pre-tax profit of $ 224.9 million compared to a loss of $ 9.5 million. dollars in the first quarter of 2020.
Academy has raised its outlook for 2021, estimating a comparable store sales increase of 6-9% from the previous forecast of minus -2 to 2%.
Net income is now estimated to be between $ 400 million and $ 435 million for 2021, versus a previous forecast of $ 265 to $ 290 million, and diluted earnings per share is estimated between $ 4.15 and $ 4.50, versus a previous forecast. from 2.70 to 2.95 dollars.
Founded in 1938 as a family business in Texas, Academy now has 259 stores in 16 contiguous states.