Publication of results for the first quarter of fiscal year 2023
On June 7, 2022, Academy released its fiscal first quarter 2023 results for the quarter ending April 2022. The company reported earnings per share (EPS) of $1.73 versus $1.41 consensus estimate. analysts, beating estimates by $0.32. Revenue fell (-7.1%) year-over-year (YoY) to $1.47 billion, beating analyst estimates of $1.45 billion. Comparable sales fell (-7.5%). Gross margins were 35.5%. The Company ended the quarter with $472.4 million in cash with no borrowings under the $1 billion credit facility. Academy CEO Ken Hicks commented, “We are pleased with our first quarter results as the company continued to position itself for long-term growth and expansion, as we executed effectively in a very dynamic environment and compared to a very good quarter of the previous year.
Academy posted full-year 2023 EPS of $6.55 to $7.25 versus analyst consensus estimate of $6.93, up from $6.70 to $7.25. Revenue for fiscal year 2023 is expected to be between $6.43 billion and $6.63 billion versus $6.66 billion. Comparable sales should be between (-6%) and (-3%).
Takeaways from the conference call
CEO Hicks detailed the first new store opening on April 24, 2022 since 2019, bringing the total number of stores to 260 stores in 16 states. It plans to open 80 to 100 new stores in the next five years. The regional chain plans to open stores in Virginia and West Virginia later this year. They plan to expand beyond the 16 states that have stores. Academy is emerging from the pandemic environment and navigating macroeconomic headwinds led by CEO Hicks, who was a former CEO of Footlocker from 2009 to 2014. Each new store costs around $3.5 million. Existing stores are profitable and generating EBITDA of $3.91 million in 2021. He noted that the pandemic has influenced consumer trends that support a more active lifestyle supporting sports and recreation. E-commerce grew 19% as the company continued to invest in the omnichannel experience for its customers.
While its four main merchandise divisions, including sports and recreation, outdoor, apparel and footwear, saw sales decline, they were still 20% above 2019 levels. exceeded 2019 levels by more than 50%. The drop in sales (-7.5%) year-over-year illustrates the natural return from peak levels of stimulus spending. CEO Hicks is confident in the positive trends in the sports and outdoor market despite growing macroeconomic challenges that have prompted the company to revise its guidance.
ASO Opportunistic Withdrawal Levels
Using the rifle charts on the weekly and daily time frames provides an accurate view of the landscape for the ASO stock. Rifles Weekly Chart Hit Or Break After Peaking Three Times From $38.49 Fibonacci level (fib). The weekly 5-period moving average (MA) is steady at $36.08 with the 15-period MA at $36.58. The weekly 50-period MA straddles the $38.49 fib resistance. The weekly lower Bollinger Bands (BB) sit at $29.13 as the stochastic attempts to form a mini pup. The weekly weak market structure (MSL) buy triggers on a breakout at $35.82. The Daily Rifles chart is decisive with a 5-period MA at $35.76, a 15-period MA at $35.88 and a 50-period MA at $36.59. with daily BB lowers at $31.94 and BB uppers at $40.37. The daily Stochastic falls below the 50 band. The daily 200-period MA stands at $39.04. Cautious investors can look for opportunistic pullback levels at the $33.97, $32.94, $31.14, $29.88, $28.13, $26.70 and $25.78 level. The upward trajectories range from the $39.97 fib to the $47.81 fib level. Competitors and peers include Big Five Sports (NASDAQ: BGFV) and Hibbett Sports (NASDAQ: HIBB).
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