Academy Sports + Outdoors said its profits and sales declined in the second quarter, following record 2021 levels caused by surges in outdoor activity during the pandemic.
The Katy-based sports and leisure retailer reported earnings of $188.8 million for the quarter ended July 30 — down less than one percent from earnings of $190.5 million in the second quarter of the previous year. Net sales fell 6.4 percent year-over-year, although the $3.15 billion still represents growth of 36.3 percent compared to pre-pandemic sales in 2019, the company reported.
AT THE SAME TIME LAST YEAR: Academy Sports and Outdoors reports another record sales
Academy profits skyrocketed during the pandemic as more consumers sought outdoor and fitness gear to get outside and stay healthy. Last year was the most profitable year in the company’s history, with the second quarter of the previous year being the best quarterly financial results in the company’s history.
In the second quarter of this year, Academy opened a new store in Panama City, Fla. and has since opened new locations in Atlanta, Georgia and Richmond, Virginia, as part of a nationwide expansion effort. According to CEO Ken Hicks, sales at the new stores have exceeded the company’s initial expectations. Online sales also grew 12.1 percent year-on-year – nearly 2.5 times higher than the same time in 2019.
Overall results were in line with the company’s expectations for the quarter, Hicks said. Sales declined in each of the four product areas — sports and leisure, footwear, apparel and outdoor — compared to the second quarter of 2021.
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As inflation rises and a potential recession looms, Hicks says more consumers are switching to its own-brand products. But the company has also seen returning customers upgrade their equipment, such as B. Kids buying new baseball gloves as they get older.
“We sometimes talk about what’s discretionary and what’s not,” Hicks said on a conference call. “Even in difficult times, the kids still play baseball or soccer. The person who is interested in the outdoors still goes camping or fishing, and families still go for barbecues.”