Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Academy Sports (NASDAQ:ASO) and the best and worst performers in the sports & outdoor equipment retailer industry.
Some of us spend our leisure time vegging out, but many others take to the courts, fields, beaches, and campsites; sports equipment retailers cater to the avid sportsman as well as the weekend warrior. Shoppers can find everything from tents to lawn games to baseball bats to satisfy their athletic and leisure needs along with competitive prices and helpful store associates that can talk through brands, sizing, and product quality. This is a category that has moved rapidly online over the last few decades, so these sports and outdoor equipment retailers have needed to be nimble and aggressive with their e-commerce and omnichannel presences.
The 4 sports & outdoor equipment retailer stocks we track reported a slower Q1. As a group, revenues were in line with analysts’ consensus estimates.
Stocks--especially those trading at higher multiples--had a strong end of 2023, but this year has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and sports & outdoor equipment retailer stocks have had a rough stretch. On average, share prices are down 7.3% since the latest earnings results.
Academy Sports (NASDAQ:ASO) Founded in 1938 as a tire shop before expanding into fishing equipment, Academy Sports & Outdoor (NASDAQ:ASO) sells a broad selection of sporting goods but is still known for its outdoor activity merchandise.
Academy Sports reported revenues of $1.36 billion, down 1.4% year on year. This print was in line with analysts’ expectations, but overall, it was a weak quarter for the company with a miss of analysts’ gross margin and earnings estimates.
Steve Lawrence, Chief Executive Officer, commented, "As expected, our first quarter results reflect that our customers remain under pressure in the current economic environment. We will navigate through the remainder of the year by continuing to lean into our position as the value leader in our space, while also inspiring customers to shop through introductions and expansions of new and innovative products. We will also continue making strategic investments in our long-range growth initiatives. We are pleased that we drove a positive comp in our new stores and omnichannel business. Academy has the right elements in place to achieve our long-range goals: a well-established business model, an experienced leadership team and a strong balance sheet."
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $53.86.
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Best Q1: Dick's (NYSE:DKS) Started as a hunting supply store, Dick’s Sporting Goods (NYSE:DKS) is a retailer that sells merchandise for traditional sports as well as for fitness and outdoor activities.
Dick's reported revenues of $3.02 billion, up 6.2% year on year, outperforming analysts’ expectations by 2.7%. It was a strong quarter for the company with optimistic earnings guidance for the full year and a decent beat of analysts’ earnings estimates.
Dick's delivered the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 15.6% since reporting. It currently trades at $225.38.
Weakest Q1: Sportsman's Warehouse (NASDAQ:SPWH) A go-to destination for individuals passionate about hunting, fishing, camping, hiking, shooting sports, and more, Sportsman's Warehouse (NASDAQ:SPWH) is an American specialty retailer offering a diverse range of active gear, equipment, and apparel.
Sportsman's Warehouse reported revenues of $244.2 million, down 8.7% year on year, falling short of analysts’ expectations by 1.6%. It was a weak quarter for the company with a miss of analysts’ earnings and gross margin estimates.
Sportsman's Warehouse had the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update in the group. As expected, the stock is down 47.1% since the results and currently trades at $2.01.
Hibbett (NASDAQ:HIBB) With a focus on small and mid-sized markets, Hibbett (NASDAQ:HIBB) is a specialty retailer that sells athletic apparel and footwear as well as select sports equipment.
Hibbett reported revenues of $447.2 million, down 1.8% year on year, falling short of analysts’ expectations by 1.5%. Revenue aside, it was a decent quarter for the company with an impressive beat of analysts’ gross margin estimates.
The stock is up 1.4% since reporting and currently trades at $87.48.
This content was originally published on Stock Story
