Academy Sports and Outdoors, a Texas-based sporting goods and outdoor recreation retailer, posted a comparable sales decline of 7.3% for its first quarter ended April 29 as macro-economic pressures and other factors weighed on results.
Net sales dropped 5.7% to $1.38 billion and net income dropped 37.3% to $94 million compared to the prior-year period.
Gross margin decreased to 33.8%, compared to 35.5%.
“Our first quarter results were below our expectations for sales and profit as they were impacted by the ongoing macro-economic pressures on customers, unfavorable weather as well as strong comparisons in our hunting business last year,” said Ken Hicks, executive chairman, in a news release.
Academy lowered its guidance for 2023, expecting net sales for the year to range between $6.18 billion to $6.37 billion, compared to earlier guidance of $6.5 billion to $6.7 billion.
Adjusted earnings per diluted share are expected to be $6.80 to $7.50, compared to previous guidance of $7.00 to $7.75.
“Although our first quarter sales and earnings did not meet our expectations and we have macroeconomic challenges to manage through, our revised guidance reflects our anticipation that sales will improve in the back half of the year,” said Michael Mullican, president and acting chief financial officer. “This will be primarily driven by the contribution of new stores, the introduction of new brands, a strengthening outdoor business and the impact of enhanced customer data mining.”
Originally founded in 1938 as a family business in Texas, Academy has 269 stores in 18 states.
Academy opened a new store in Lafayette, Indiana this April, its first in 2023 and fourth in the state. The company plans to open 13 to 15 new stores this year and a total of 120 to 140 new stores by the end of 2027.
