Page 1

Academy Sports + Outdoors Reports Record Third Quarter 2021 Results and Raises FY 2021 Guidance December 10 , 2021 Net Sales Increased 18.1 % ; 39.1 % Growth over Two Years Pre - Tax Income Grew 251.6 % to $ 205.3 million Company Raises Full Year Diluted GAAP EPS Range to $ 6.75 to $ 6.85 from $ 5.45 to $ 5.80 KATY , Texas , Dec. 10 , 2021 ( GLOBE NEWSWIRE ) Academy Sports and Outdoors , Inc. ( Nasdaq : ASO ) ( " Academy " or the " Company " ) today announced its financial results for the third quarte ended October 30 , 2021. Unless otherwise indicated , mparisons are to the same period in the prior fiscal year . Third Quarter 2021 Results . For the third quarter , net sales increased 18.1 % to a third quarter record of $ 1.59 billion . When compared to the third quarter of 2019 , sales increased 39.1 % . Comparable sales were 17.9 % on top of 16.5 % last year , making it the 9th consecutive quarter of positive comparable sales . The Company continued to benefit from the strategic initiatives implemented to improve merchandise planning and allocation , operations , customer service and supply chain . As a result of these actions and the continued strong consumer demand for sports and outdoors products , all four product divisions saw significant growth . E - commerce sales grew 25.9 % compared to the prior year quarter and 146.6 % compared to the third quarter of 2019 . Gross margin increased 27.3 % to $ 560.8 million . The gross margin rate improved by 250 basis points to 35.2 % . This growth was primarily driven by higher merchandise margins resulting from effective pricing and promotions management , a favorable product mix shift and fewer clearance sales . Selling , general and administrative ( " SG & A " ) expenses were 21.6 % of sales , a 500 basis point decrease . Compared to the third quarter of 2020 adjusted SG & A , which excludes certain initial public offering costs , SG & A leveraged 230 basis points , primarily attributable to workforce management , marketing cost efficiencies and leveraging expenses from the growth of comparable sales . Pre - tax income increased 251.6 % to $ 205.3 million compared to $ 58.4 million . GAAP net income was $ 161.3 million compared to $ 59.6 million . Diluted earnings per share increased 132.4 % to $ 1.72 compared to $ 0.74 per share last year . Pro forma adjusted net income , which excludes the impact of certain non - cash and extraordinary items , increased 122.6 % to $ 164.1 million . Pro forma diluted earnings per share increased 92.3 % to $ 1.75 compared to $ 0.91 per share . " The Academy Sports + Outdoors team did a great job again delivering our 9th consecutive quarterly sales and profit increase , " said Ken Hicks , Chairman , President and Chief Executive Officer . " We are confident that our strong assortment and value offering , coupled with our great store service , enhanced omnichannel capabilities , and resilient supply chain will enable Academy to continue to achieve excellent results through this holiday season and beyond . " Year - to - Date 2021 Results Year - to - date , net sales increased 21.3 % to $ 4.96 billion , while comparable sales increased 21.2 % . Year - to - date sales grew 43.5 % compared to 2019 . E - commerce sales declined 1.5 % versus 2020 and increased 203.9 % compared to 2019 . Gross margin increased 43.1 % to $ 1.77 billion . The gross margin rate improved by 540 basis points to 35.6 % . This growth was primarily driven by higher merchandise margins resulting from effective pricing and promotions management , strong inventory productivity , greater product localization , fewer clearance sales and a favorable product mix shift . The growth in gross profit and 210 basis points of expense leverage , resulted in a 208.5 % increase in pre - tax income to $ 671.1 million compared to $ 217.6 million . GAAP net income increased 143.8 % to $ 529.6 million compared to $ 217.2 million . Diluted earnings per share were $ 5.55 compared to $ 2.82 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 173.8 % to $ 571.2 million . Pro forma diluted earnings per share were $ 5.98 compared to $ 2.70 per share in the prior year to date . Balance Sheet Update As of the end of the third quarter , the Company's cash and cash equivalents totaled $ 401.3 million and the credit facility had no outstanding balance . Adjusted free cash flow was $ 84.4 million . Merchandise inventories were $ 1.3 billion , an increase of 22.4 % compared to the prior year quarter and 18.9 % higher than the second quarter of 2021 . As previously reported , on September 14 , 2021 , Academy's largest shareholder ( " KKR " ) sold its remaining ownership of the Company . As part of this event , Academy purchased 4.5 million shares for approximately $ 200 million . Additionally , during the quarter , the Company made open market purchases of 1.2 million shares for $ 50 million . Year - to - date , the Company has repurchased and retired 8.9 million shares of its common stock for approximately $ 350 million . As of October 31 , 2021 , the Company had approximately $ 254 million remaining under its share repurchase program . 2021 Outlook Michael Mullican , Executive Vice President and Chief Financial Officer said , " The ongoing successful execution of our strategic priorities has allowed us to achieve yet another period of record - setting sales and profitability . In addition , the strength of the entire Academy team was apparent as we were able to grow our inventory position in a challenging environment . As our initiatives continue to mature , we believe the best days at Academy are still to come . In light of these exceptional results and expectations , we are raising our annual guidance . " The Company is raising its fiscal 2021 guidance based on the strong third quarter performance , dynamic consumer trends and current visibility . The new guidance is as follows :