Academy says numbers remain near record
Sales and profit at Katy-based Academy Sports and Outdoors declined slightly in fiscal year 2022, but the retailer says its bottom line continues to reflect pandemic-era success.
In the company’s fiscal year ended Jan. 28, sales decreased by more than 5 percent to just under $6.4 billion from just under $6.8 billion a year earlier, driven by more than an 8 percent decline in the number of transactions. Profit also decreased, by more than 6 percent, to $628 million, compared with $671.4 million in fiscal year 2021.
Still, Academy’s numbers remain near record numbers as more consumers sought out fitness and outdoor gear. Some thought those numbers would drop dramatically as pandemic restrictions eased and more people returned to the pre-pandemic routines, according to CEO Ken Hicks.
“What we’ve seen now, two plus years later, is that that was not the case.” Hicks told the Houston Chronicle. “We’ve proven we’re a solid story now and should be for the future.”
Compared with 2019, net sales were up more than 30 percent, and e-commerce sales have nearly tripled, according to the company. In 2022, Academy also opened its first new stores since 2019, with nine opening across the U.S.
An expanded footprint was “significant” in helping Academy maintain low costs during its fiscal year, Hicks said. During the pandemic, shipping prices rose dramatically as the cost of labor and gasoline increased. But at Academy, more than 75 percent of online orders are handled by stores — 50 percent are bought online and picked up in a store, and 25 percent are orders shipped from stores.
But the company offered a warning for its current fiscal year, saying it expects lower margins heading into 2023.
“We anticipate that consumers will remain pressured and mindful of their spending due to the current economy. With this as the backdrop, our market position as a value leader is more important than ever,” Hicks told investors.
To maintain that position, the retailer plans to cut into margins. There are some price points that customers know to look for and that the company must maintain to stay competitive — such as $99 bicycles and $5.99 folding chairs, Hicks told the Chronicle.