Academy Sports reports ‘most profitable year’ in company history as pandemic drives people out

0

Retailer Katy reported a profit of $141.8 million in the quarter ended Jan. 29, compared with a profit of $91.5 million in the same period last year. Revenue jumped 13% to $1.8 billion from $1.6 billion in the year-ago quarter as the pandemic continued to drive demand for outdoor-related products.

For the year ended Jan. 29, the company posted a profit of $671.4 million, compared to $308.8 million a year earlier. Revenue jumped 19% to $6.8 billion from $5.7 billion.

“2021 has been an amazing year for Academy Sports + Outdoors. The team has achieved the highest sales and profits in company history while overcoming many challenges facing the company and the retail industry. retail are facing,” said Ken Hicks, president, president and CEO of the Academy. . “We are proud of what our business has accomplished over the past three years, but even more excited about our prospects for future growth.”

Demand for fitness and outdoor equipment was already on the rise before the pandemic, the company said, but the pandemic has heightened those interests as people slow down, get outside more and focus on health.

The company’s margins jumped 36% last year to a record $2.4 billion, driven by higher retail prices and a favorable product mix, which offset rising transportation costs , did he declare. A cancellation of promotions also helped boost margins.

“Looking at the current supply situation, there just aren’t as many properties to be promoted as there used to be,” Hicks told investors on a call Tuesday.

A push to boost online sales performance helped Academy’s fourth-quarter e-commerce sales jump 23% from a year earlier and 97% from the same quarter in 2019. The company adds simultaneously locations, changes layouts and emphasizes localized products.

Hicks said he expects demand for the Academy’s sporting goods to increase as people follow the outdoor activities such as camping and rock climbing they’ve been doing during the season. pandemic.

“The good news is we’re seeing the benefits of the things we’re doing,” he said. “The best news is there’s even more to come.”

Academy’s stock price has tripled since the company went public in October 2020 at a price of $13. Shares were trading around $39 on Tuesday morning.

[email protected]

Featured Business Stories


Read more related stories here


Share.

Comments are closed.