Academy Sports + Outdoors, Inc. (NASDAQ: ASO) reported its financial results for the fourth quarter and fiscal year ended February 3, 2024. The company's fourth quarter comparable sales saw a decline of (3.6)%, representing a +440 basis point increase compared to the (8.0)% decline in the third quarter of 2023. The fourth quarter diluted GAAP EPS stood at $2.21, showing a growth of 12.2% over the previous year. Academy opened seven new stores in the fourth quarter, totaling 14 new stores in 2023. The company also announced a 22% increase in its quarterly dividend, which is payable on April 18, 2024.
In terms of operating results, net sales for the fourth quarter were $1,794.8 million, showing a 2.8% increase over the same period last year. The net income for the quarter was $168.2 million, marking a 6.7% increase compared to the previous year. For the fiscal year 2023, net sales were $6,159.3 million, representing a (3.7)% change from the previous year. The net income for the fiscal year 2023 was $519.2 million, a decrease of 17.3% compared to the previous year.
Looking at the balance sheet, Academy's cash and cash equivalents increased by 3.2% to $347.9 million, while merchandise inventories showed a decrease of (7.0)% to $1,194.2 million. Long-term debt, net decreased by (17.1)% to $484.6 million.
In terms of capital allocation for the fiscal year ended February 3, 2024, the company repurchased $204.2 million of stock, paid $27.2 million in dividends, and reduced its debt by $103 million. Additionally, the company announced plans to open 15-17 new stores in 2024.
Looking ahead to fiscal 2024, Academy provided initial guidance, anticipating net sales between $6,070 million and $6,350 million, with a sales growth ranging from (1.5)% to +3.0%. Comparable sales are estimated to be between (4.0)% and 1.0 %, representing a +500 basis point change from fiscal 2023. The company also expects a gross margin rate between 34.3% and 34.7%, and diluted earnings per common share between $5.90 and $6.90.
Academy Sports + Outdoors, Inc. is a leading full-line sporting goods and outdoor recreation retailer in the United States, with 282 stores across 18 states. The company's mission is to provide "fun for all" through a localized merchandising strategy and a value proposition that strongly connects with a broad range of consumers. Today the company's shares have moved -8.4% to a price of $65.23. For more information, read the company's full 8-K submission here.
