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Academy Sports + Outdoors Announces Record Sales and Earnings for the Second Quarter and Raises 2021 Guidance September 9 , 2021 Net Sales Increased 11.5 % ; 44.8 % Growth over Two Years Pre - Tax Income Grew 42.8 % to $ 240.9 million Company Raises Full Year Diluted EPS Range to $ 5.45 to $ 5.80 from $ 4.15 to $ 4.50 Company Announces New $ 500 Million Share Repurchase Authorization KATY , Texas , Sept. 09 , 2021 ( GLOBE NEWSWIRE ) -- Academy Sports and Outdoors , Inc. ( Nasdaq : ASO ) ( " Academy " or the " Company " ) today announced its financial results for the second quarter ended July 31 , 2021. Unless otherwise indicated , comparisons are to the same period in the prior fiscal year . Second Quarter 2021 Results Net sales increased 11.5 % to an all - time quarterly high of $ 1.79 billion . When compared to the same quarter in 2019 , sales increased 44.8 % . Comparable sales grew 11.4 % on top of 27.0 % last year , making it the eighth consecutive quarter of positive comparable sales . The sales growth was driven by the sustained strength in the sporting goods and outdoor recreation market , improving in - stocks and strong consumer demand across all product categories . Sales were particularly strong in Apparel , Footwear , Field , Fitness and Team Sports . E - commerce sales declined slightly ( 0.9 % ) after growing 210.3 % in the prior year quarter . When compared to the second quarter of 2019 , E - commerce sales increased 207.2 % . Gross margin increased 29.4 % to $ 642.5 million , the highest quarterly gross profit in the Company's history . The gross margin rate improved by 500 basis points to 35.9 % . This growth was primarily driven by stronger merchandise margins from a favorable product mix shift , higher average unit retails and less promotional activity . Selling , general and administrative ( " SG & A " ) expenses were 21.7 % of sales , a 220 basis point increase . The change was a result of higher advertising and payroll expenses that had been pared back last year due to the pandemic as well as non - recurring stock compensation and payroll expenses associated with accelerated share vesting . Excluding the non - recurring expenses , SG & A expenses would have been 19.2 % of sales . Pre - tax income increased by 42.8 % to $ 240.9 million compared to $ 168.7 million . Net income was $ 190.5 million compared to $ 167.7 million . Diluted earnings per share were $ 1.99 compared to $ 2.25 per share . The decline in earnings per share was the result of an increase in the number of shares outstanding and higher federal income tax . Pro forma adjusted net income , which excludes the impact of certain non - cash and extraordinary items , increased 67.1 % to $ 224.6 million . Pro forma diluted earnings per share increased 29.3 % to $ 2.34 compared to $ 1.81 per share . " The Academy Sports + Outdoors team delivered the best quarterly financial results in the Company's history as we surpassed the very strong store comparables from last year , " said Ken Hicks , Chairman , President and Chief Executive Officer . " We plan to build on this continued success by further sharpening our focus on the fundamentals of the business and investing in our strategic initiatives with the goal of adding new customers , gaining market share and driving sales and profit growth . I am also excited to announce the authorization of our new share repurchase program . This program signifies the current strength of the Company and the confidence we have in the future of Academy . " Year - to - Date 2021 Results Net sales increased 22.9 % to $ 3.37 billion , while comparable sales increased 22.8 % . Year - to - date sales grew 45.7 % compared to 2019. E - commerce sales increased 241.9 % compared to 2019 and declined 10.8 % versus 2020 . Gross margin increased 51.8 % to $ 1.21 billion . The gross margin rate improved by 680 basis points to 35.8 % . The growth in gross profit , coupled with 70 basis points of selling , general & administrative expense leverage , resulted income to $ 465.8 million compared to $ 159.2 million . a 192.6 % increase in pre - tax Net income increased 133.6 % to $ 368.3 million compared to $ 157.7 million . Diluted earnings per share were $ 3.82 compared to $ 2.12 per share in the prior year to date . Pro forma adjusted net income , which excludes the impact of certain non - cash and extraordinary items , increased 201.9 % to $ 407.1 million . Pro forma diluted earnings per share were $ 4.22 compared to $ 1.81 per share in the prior year to date . Balance Sheet Update The company also took steps to enhance its balance sheet . As of the end of the second quarter , the Company's cash and cash equivalents totaled $ 553.8 million with no outstanding balance on its credit facility . Adjusted free cash flow was $ 169.5 million . Merchandise inventories were $ 1.1 billion , an increase of 24.0 % compared to the prior year quarter and 3.2 % compared to Q1 2021 . As previously reported , Academy's largest shareholder ( KKR ) completed two transactions , reducing their ownership to approximately 20 % of the Company as of the end of the quarter . As part of one of these events , Academy purchased and retired 3.2 million shares for approximately $ 100 million . In addition to the stock repurchase , the Company paid down $ 99 million of its outstanding term loan and refinanced the loan's interest rate from LIBOR + 5.0 % to LIBOR + 3.75 % . Based on these positive actions , S & P ( B + from B ) and Moody's ( Ba3 from B1 ) both upgraded the Company's debt rating . Capital Allocation On September 2 , 2021 , the Academy Board of Directors authorized a new share repurchase program under which the Company may purchase up to $ 500 million of its outstanding shares over the next three years . 2021 Outlook Michael Mullican , Executive Vice President and Chief Financial Officer , said , " Our second quarter performance set Company records across