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ASO (43.23) reports strong Oct Q3 earnings - adj EPS of $1.75 crushed estimates for $1.11 -

briefing -

Academy Sports + Outdoors beats by $0.64, beats on revs; Q3 comps +17.9%; raises FY22 EPS, revenue, and comp guidance (43.23)

Reports Q3 (Oct) earnings of $1.75 per share, excluding non-recurring items, $0.64 better than the S&P Capital IQ Consensus of $1.11; revenues rose 14.5% year/year to $1.59 bln vs the $1.49 bln S&P Capital IQ Consensus.
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.
Co issues raised guidance for FY22, sees EPS of $7.21-7.31 from $5.45-5.80, excluding non-recurring items, vs. $6.43 S&P Capital IQ Consensus; sees FY22 revs of $6.675-6.74 bln from $6.47-6.62 bln vs. $6.6 bln S&P Capital IQ Consensus. Co sees FY22 comps of +17-18% versus +14-17% prior guidance.

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