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Academy Sports and Outdoors (ASO)

Academy is a leading full-line sporting goods and outdoor recreation retailer in the United States. Originally founded in 1938 as a family business in Texas, Academy has grown to 259 stores across 16 contiguous states. Academy's mission is to provide 'Fun for All' and Academy fulfills this mission with a localized merchandising strategy and value proposition that strongly connects with a broad range of consumers. Academy's product assortment focuses on key categories of outdoor, apparel, footwear and sports & recreation through both leading national brands and a portfolio of 17 private label brands, which go well beyond traditional sporting goods and apparel offerings.

Company profile

Ticker
ASO
Exchange
Website
Employees
Incorporated
Location
Fiscal year end
SEC CIK
Subsidiaries
New Academy Holding Company, LLC • Academy Managing Co., LLC • Associated Investors, LLC • Academy, Ltd. • Academy International Limited ...
IRS number
851800912

ASO stock data

Calendar

7 Sep 22
30 Sep 22
28 Jan 23
Quarter (USD) Jul 22 Apr 22 Jan 22 Oct 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Jan 22 Jan 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 399.86M 399.86M 399.86M 399.86M 399.86M 399.86M
Cash burn (monthly) 24.18M 12.83M (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) 48.9M 25.95M n/a n/a n/a n/a
Cash remaining 350.96M 373.91M n/a n/a n/a n/a
Runway (months of cash) 14.5 29.1 n/a n/a n/a n/a

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Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
13 Sep 22 Samuel J Johnson Common Stock Sell Dispose S No No 48.46 112,000 5.43M 132,539
13 Sep 22 Samuel J Johnson Common Stock Option exercise Acquire M No No 16.7 6,625 110.64K 244,539
13 Sep 22 Samuel J Johnson Common Stock Option exercise Acquire M No No 16.57 18,998 314.8K 237,914
13 Sep 22 Samuel J Johnson Common Stock Option exercise Acquire M No No 16.57 38,572 639.14K 218,916
13 Sep 22 Samuel J Johnson Common Stock Option exercise Acquire M No No 17.3 47,805 827.03K 180,344
13 Sep 22 Samuel J Johnson Stock Options Common Stock Option exercise Dispose M No No 16.7 6,625 110.64K 5,103
13 Sep 22 Samuel J Johnson Stock Options Common Stock Option exercise Dispose M No No 16.57 18,998 314.8K 0
13 Sep 22 Samuel J Johnson Stock Options Common Stock Option exercise Dispose M No No 16.57 38,572 639.14K 0
13 Sep 22 Samuel J Johnson Stock Options Common Stock Option exercise Dispose M No No 17.3 47,805 827.03K 1,952
31 Aug 22 Hicks Ken C Common Stock Payment of exercise Dispose F No No 44 632 27.81K 455,687
13F holders Current Prev Q Change
Total holders 287 311 -7.7%
Opened positions 46 79 -41.8%
Closed positions 70 60 +16.7%
Increased positions 94 112 -16.1%
Reduced positions 114 87 +31.0%
13F shares Current Prev Q Change
Total value 2.94B 3.43B -14.2%
Total shares 82.81M 87.14M -5.0%
Total puts 2.16M 2.1M +3.0%
Total calls 4.55M 7.35M -38.2%
Total put/call ratio 0.5 0.3 +66.6%
Largest owners Shares Value Change
BLK Blackrock 13.58M $482.56M +0.1%
FMR 12.76M $453.65M -4.6%
Vanguard 9.49M $337.39M +0.3%
STT State Street 2.97M $105.66M +4.7%
Dimensional Fund Advisors 2.05M $72.73M +89.5%
Fuller & Thaler Asset Management 1.88M $66.94M NEW
GS Goldman Sachs 1.86M $66.22M +53.2%
Geode Capital Management 1.74M $61.88M +10.8%
BAC Bank Of America 1.73M $61.59M +24.3%
Alliancebernstein 1.66M $59.17M +42.8%
Largest transactions Shares Bought/sold Change
Fuller & Thaler Asset Management 1.88M +1.88M NEW
Hood River Capital Management 0 -1.63M EXIT
Samlyn Capital 0 -1.21M EXIT
Dimensional Fund Advisors 2.05M +966.66K +89.5%
Point72 Asset Management 266.14K -798.2K -75.0%
JPM JPMorgan Chase & Co. 1.03M +770.65K +296.6%
Citadel Advisors 0 -735.85K EXIT
Voloridge Investment Management 0 -731.94K EXIT
King Luther Capital Management 863.06K +685.01K +384.7%
GS Goldman Sachs 1.86M +647.28K +53.2%

Financial report summary

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Risks
  • Our results of operations are highly dependent on the U.S. economy and U.S. consumer discretionary spending and an economic and financial downturn may cause a decline in U.S. consumer discretionary spending and may adversely affect our business, operations, liquidity, capital resources and financial results.
  • If we are unable to predict or effectively react to changes in consumer tastes and preferences, or if we fail to acquire and sell brand name merchandise at competitive prices, or if we are not successful in managing our inventory balances, then we may lose customers and our sales may decline and our results of operations may be negatively affected.
  • The impact of COVID-19 has, and may continue to, impact our business and financial results.
  • Intense competition in the sporting goods and outdoor recreation retail industries could limit our growth and reduce our profitability.
  • Any failure to protect the integrity, security and use of sensitive or confidential data that we hold relating to us and our customers, team members and vendors, whether as a result of unauthorized disclosure, data loss or a breach of our information technology systems, could result in lost sales, fines and/or lawsuits, a loss of confidence in us, and harm to our reputation, business, results of operations and financial condition.
  • A significant portion of the merchandise that we sell is manufactured in foreign countries, including China, which exposes us to various international risks that could have a material adverse effect on our business and results of operations.
  • We depend on approximately 1,200 suppliers to supply us with the merchandise we purchase for resale and our significant dependence on these suppliers exposes us to risks associated with disruption in supply and losses of merchandise purchasing incentives that could have a material adverse effect on our business and results of operations.
  • A failure of our third-party vendors of outsourced business services and solutions to meet our performance standards and expectations could adversely affect our operations.
  • We may not be able to continue our store growth plans successfully or continue to manage our growth effectively, and our new stores may not generate sales levels necessary to achieve store-level sales or profitability comparable to that of our existing stores, which could materially and adversely affect our business, financial condition and results of operations.
  • Our e-commerce activities expose us to various risks that could have a material adverse impact on our overall results of operations.
  • Our owned brand merchandise exposes us to various risks generally encountered by companies that source, manufacture, market and retail exclusive owned brand merchandise.
  • A disruption in the operation of our distribution centers would affect our ability to deliver merchandise to either our stores or customers, which could adversely impact our revenues and harm our business and financial results.
  • Our quarterly operating results and comparable sales may fluctuate due to seasonality and other factors outside of our control.
  • The occurrence of severe weather events, catastrophic health events, natural or man-made disasters, social and political conditions or civil unrest could significantly damage or destroy our retail locations, could prohibit consumers from traveling to our retail locations or could prevent us from resupplying or staffing our stores or distribution centers or fulfilling out e-commerce orders, especially during peak shopping seasons.
  • Our business is significantly dependent on our ability to meet our labor needs.
  • We depend on key personnel in order to support our existing business and future initiatives and may not be able to retain or replace these team members recruit additional qualified personnel or effectively manage succession.
  • Our stores are located primarily in the southern United States which could subject us to regional risks.
  • Fluctuations in merchandise costs and availability due to fuel price uncertainty, demand changes, increases in commodity prices, labor shortages and other factors could negatively impact our consolidated and combined results of operations.
  • We are subject to payment-related risks.
  • We may pursue strategic acquisitions, which could have an adverse impact on our business, as could assimilation of companies following acquisition.
  • Our success depends on the effectiveness of our marketing and advertising programs.
  • We are subject to costs and risks associated with laws and regulations affecting our business, including those relating to the sale, manufacture and import of consumer products and other matters, and the substance or enforcement of such laws may change or become more stringent.
  • We are, and may in the future, be subject to claims, demands and lawsuits, and our insurance or indemnities may not be sufficient to cover damages related to those claims and lawsuits.
  • Our failure to protect our intellectual property or avoid the infringement of third-party intellectual property rights could be costly and have a negative impact on our results of operations.
  • We are subject to costs and risks associated with the requirements of being a public company, and our management is required to devote substantial time to compliance, adding complexity to running our business.
  • Failure to comply with requirements to design, implement and maintain effective internal controls could have a material adverse effect on our business and stock price, and any failure to maintain financial controls could result in our financial statements becoming unreliable.
  • Our level of indebtedness requires that we dedicate a portion of our cash flows to debt service payments and reduces the funds that would otherwise be available for other general corporate purposes and other business opportunities, which could adversely affect our operating performance, growth, profitability and financial condition, which in turn could make it more difficult for us to generate cash flow sufficient to satisfy all of our obligations under our indebtedness.
  • Despite our level of indebtedness, we may still be able to incur substantially more debt, which could further increase the risks to our financial condition described above.
  • If we are unable to generate sufficient cash to service all of our indebtedness, we may be forced to take other actions to fund the satisfaction of our obligations under our indebtedness, which may not be successful.
  • The terms of our outstanding indebtedness may restrict our current and future operations, particularly our ability to respond to changes or to take certain actions.
  • Our variable rate indebtedness subjects us to interest rate risk, which could cause our debt service obligations to increase significantly.
  • If the financial institutions that are lenders under the ABL Facility fail to extend credit under the facility or reduce the borrowing base, our liquidity and results of operations may be adversely affected.
  • Our level of indebtedness may hinder our ability to negotiate favorable terms with our landlords, vendors and suppliers, which could negatively impact our operating performance and, thus, could make it more difficult for us to generate cash flow sufficient to satisfy all of our obligations under our indebtedness.
  • You may be diluted by the future issuance of additional common stock in connection with our incentive plans, acquisitions or otherwise.
  • Our stock price may be highly volatile or may decline regardless of our operating performance, and you may not be able to resell shares of our common stock at or above the price you paid or at all, and you could lose all or part of your investment as a result.
  • Our ability to raise capital in the future may be limited.
  • If securities analysts do not publish research or reports about our business or if they downgrade our stock or our sector, our stock price and trading volume could decline.
  • Anti-takeover provisions in our organizational documents could delay or prevent a change of control.
  • Our board of directors is authorized to issue and designate shares of our preferred stock in additional series without stockholder approval.
  • Our amended and restated certificate of incorporation provides, subject to limited exceptions, that the Court of Chancery of the State of Delaware will be the exclusive forum for substantially all disputes between us and our stockholders and the federal district courts will be the exclusive forum for Securities Act claims, which could limit our stockholders’ ability to bring a suit in a different judicial forum than they may otherwise choose for disputes with us or our directors, officers, team members or stockholders.
Management Discussion
  • *Percentages in table may not sum properly due to rounding.
  • Net Sales. Net sales decreased $104.6 million, or 5.8%, in the 2022 second quarter over the prior year second quarter as a result of decreased comparable sales of 6.0%, which were partially offset by increased sales from the addition of one new store during the period.
  • The decrease of 6.0% in comparable sales was driven by lower sales across all merchandise divisions as a result of fewer transactions partially offset by an increase in average ticket. The outdoor merchandise division had declines in shooting sports and fishing, partially offset by an increase in the camping category. The apparel division experienced declining sales largely due to athletic apparel. The footwear division decreased due to lower sales in athletic footwear, casual and seasonal footwear, and work footwear, partially offset by increases in youth footwear. The sports and recreation division sales were lower, primarily driven by fitness and recreation as these divisions were particularly impacted by increased prior year isolated recreation demands brought on by the COVID-19 pandemic, especially in categories such as fitness equipment, outdoor cooking, bikes and outdoor games. These decreases in the current year were partially offset by increased sales in team sports, including football, golf and basketball.

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