Net Sales Decline (1.4)%; Comparable Sales Decline (5.7)% GAAP Diluted EPS of $1.01, or $1.08 Adjusted Diluted EPS Opened Two New Stores During the First Quarter Returned $132 Million to Shareholders Through Share Repurchases and Dividends KATY, Texas, June 11, 2024 (GLOBE NEWSWIRE) -- Academy Sports and Outdoors, Inc. (NASDAQ:ASO) ("Academy" or the "Company") today announced its financial results for the first quarter ended May 4, 2024. Steve Lawrence, Chief Executive Officer, commented, "As expected, our first quarter results reflect that our customers remain under pressure in the current economic environment. We will navigate through the remainder of the year by continuing to lean into our position as the value leader in our space, while also inspiring customers to shop through introductions and expansions of new and innovative products. We will also continue making strategic investments in our long-range growth initiatives. We are pleased that we drove a positive comp in our new stores and omnichannel business. Academy has the right elements in place to achieve our long-range goals: a well-established business model, an experienced leadership team and a strong balance sheet." First Quarter Operating Results($ in millions, except per share data) Thirteen Weeks Ended Change May 4, 2024 April 29, 2023 % Net sales $ 1,364.2     $ 1,383.6     (1.4 ) % Comparable sales(1)   (5.7 ) %   (7.3 ) %   Income before income tax $ 97.7     $ 118.7     (17.7 ) % Net income $ 76.5     $ 94.0     (18.6 ) % Adjusted net income(2) $ 81.6     $ 103.0     (20.8 ) % Earnings per common share, diluted $ 1.01     $ 1.19     (15.1 ) % Adjusted earnings per common share, diluted(1) $ 1.08     $ 1.30     (16.9 ) % (1) Fiscal 2023 had a 53rd week, so the Company is using a shifted comp sales calculation which compares weeks 1-13 in Q1 2024 to weeks 2-14 in fiscal 2023.(2) Adjusted net income and adjusted earnings per common share, diluted are non-GAAP measures. See "Non-GAAP Measures" and "Reconciliations of GAAP to Non-GAAP Financial Measures" below for reconciliations of non-GAAP financial measures to their most directly comparable GAAP financial measures.     Thirteen Weeks Ended Change Balance Sheet($ in millions) May 4, 2024 April 29, 2023 % Cash and cash equivalents $ 378.1     $ 295.5     28.0   % Merchandise inventories, net $ 1,356.8     $ 1,386.5     (2.1 ) % Long-term debt, net $ 484.1     $ 584.1     (17.1 ) %   Thirteen Weeks Ended Change Capital Allocation($ in millions) May 4, 2024 April 29, 2023 % Share repurchases $ 123.5     $ 50.3     145.5   % Dividends paid $ 8.2     $ 6.9     18.8   % Subsequent to the end of the first quarter, on June 6, 2024, Academy's Board of Directors declared a quarterly cash dividend of $0.11 per share of common stock. The dividend is payable on July 18, 2024, to stockholders of record as of the close of business on June 20, 2024. Carl Ford, Chief Financial Officer, said, "Academy generated $200 million in cash from operations during the quarter. We believe that investing this cash into the pillars of our long-range plan will result in long-term, sustainable sales and profit growth for Academy and our shareholders. To that end, in the first quarter, we invested $32 million of capital back into the Company, repurchased $124 million in stock, and paid $8 million in dividends. We are focused on driving traffic, managing our inventory to maintain margins, and controlling expenses as we invest in our growth initiatives." New Store OpeningsAcademy opened two new stores during the first quarter. The Company plans to open 15 to 17 stores in 2024. 2024 OutlookAcademy is reiterating its previous sales and net income guidance for fiscal 2024, while updating its earnings per share forecast to reflect the share repurchase activity completed in the first quarter.   Updated Guidance   Previous Guidance (in millions, except per share data) Low end   High end   Low end   High end Net sales   no change       no change     $ 6,070.0       $ 6,350.0   Sales growth   no change       no change       (1.5 ) %     +3.0 %                         Comparable sales   no change       no change       (4.0 ) %     1.0 %                         Gross margin rate   no change       no change       34.3 %       34.7 %                         GAAP net income   no change       no change     $ 455       $ 530                           GAAP earnings per common share, diluted $ 6.05     $ 7.05     $ 5.90       $ 6.90                           Diluted weighted average common shares   ~75       ~75       ~77         ~77                           Capital expenditures   no change       no change     $ 225       $ 275                           Adjusted free cash flow(1)   no change       no change     $ 290       $ 375                           (1) Adjusted free cash flow is a non-GAAP measure. We have not reconciled it to the most comparable GAAP measure because it is not possible to do so without unreasonable efforts given the uncertainty and potential variability of reconciling items , which are dependent on future events and often outside of management's control and could be significant. Because such items cannot be predicted with the level of precision required, we are unable to provide an estimate of the most closely comparable GAAP measure at this time. Note: Fiscal year 2023 included 53 weeks compared to 52 weeks in fiscal 2024. The earnings per common share guidance reflects a tax rate of approximately 22.0% and does not include any potential future share repurchases. Conference Call InfoAcademy will host a conference call today at 10:00 a.m. Eastern Time to discuss its financial results. The call will be webcast at investors.academy.com. The following information is provided for those who would like to participate in the conference call: U.S. callers  1-877-407-3982 International callers 1-201-493-6780 Passcode 13746678     A replay of the conference call will be available for approximately 30 days on the Company's website. About Academy Sports + OutdoorsAcademy 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 284 stores across 18 states as of the end of the quarter. 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 private label brands. Non-GAAP MeasuresAdjusted EBITDA, Adjusted EBIT, Adjusted Net Income, Adjusted Earnings per Common Share, and Adjusted Free Cash Flow have been presented in this press release as supplemental measures of financial performance that are not required by, or presented in accordance with, generally accepted accounting principles ("GAAP"). The Company believes that the presentation of these non-GAAP measures is useful to investors as it provides additional information on comparisons between periods by excluding certain items that affect overall comparability. The Company uses these non-GAAP financial measures for business planning purposes, to consider underlying trends of its business, and in measuring its performance relative to others in the market, and believes presenting these measures also provides information to investors and others for understanding and evaluating trends in the Company's operating results or measuring performance in the same manner as the Company's management. Non-GAAP financial measures should be considered in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP. The calculation of these non-GAAP financial measures may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures. For additional information on these non-GAAP financial measures, please see our Annual Report for the fiscal year ended February 3, 2024 (the "Annual Report"), and our Quarterly Report for the thirteen weeks ended May 4, 2024 (the "Quarterly Report"), which may be updated from time to time in our periodic filings with the Securities and Exchange Commission (the "SEC"), which are accessible on the SEC's website at www.sec.gov. See "Reconciliations of GAAP to Non-GAAP Financial Measures" below for reconciliations of non-GAAP financial measures used in this press release to their most directly comparable GAAP financial measures. Forward Looking StatementsThis press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on Academy's current expectations and are not guarantees of future performance. Forward-looking statements may incorporate words such as "believe," "expect," "forward," "ahead," "opportunities," "plans," "priorities," "goals," "future," "short/long term," "will," "should," or the negative version of these words or other comparable words. The forward-looking statements include, among other things, statements regarding the Company's fiscal 2024 outlook, the Company's strategic plans and financial objectives, growth of the Company's business and operations, the Company's payment of dividends and declaration of future dividends, including the timing and amount thereof, share repurchases by the Company, the Company's expectations regarding its future performance, and future financial condition, and other such matters, and are subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. Actual results may differ materially from these expectations due to changes in global, regional, or local economic, business, competitive, market, regulatory and other factors that could affect overall consumer spending or our industry, including the possible effects of ongoing macroeconomic challenges, inflation and increases in interest rates, or changes to the financial health of our customers, many of which are beyond Academy's control. These and other important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in Academy's filings with the SEC, including the Annual Report and the Quarterly Report, under the caption "Risk Factors," as may be updated from time to time in our periodic filings with the SEC. Any forward-looking statement in this press release speaks only as of the date of this release. Academy undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws. Investor Contact Media Contact Matt Hodges Allan Rojas VP, Investor Relations Director, Communications 281-646-5362 281-944-6048 ACADEMY SPORTS AND OUTDOORS, INC.CONSOLIDATED STATEMENTS OF INCOME(Unaudited)(Amounts in thousands, except per share data)     Thirteen Weeks Ended   May 4, 2024   Percentage of Sales(1)   April 29, 2023   Percentage of Sales(1) Net sales $ 1,364,220     100.0   %   $ 1,383,609     100.0   % Cost of goods sold