Academy Sports and Outdoors Inc Q2 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Brian Nagel - Oppenheimer - Analyst : The first question I want to ask, it's a bit of a maintenance question, so I apologize. But just to understand better the sales trajectory in the business, and I want to make sure I understood this correctly. So in the prepared comments, you talked about I mean, it's essentially 300 basis points of comp impact from either the weather or the distribution center issues. And then I think you gave us a comp for August of a down five something. So I guess the question I'm asking is, how do we bridge that? Has the

Question: Brian Nagel - Oppenheimer - Analyst : Got it. That's very helpful. So just to reemphasize, the comp and in August was positive.

Question: Brian Nagel - Oppenheimer - Analyst : Okay. And the second question I have as a follow-up to that. I mean what you're saying today and we're hearing from a lot of other companies, is that consumers are showing up for events. It's just that there's incremental weakness and the lulls between those events. So I guess the question I want to ask, you've done a great job of maintaining gross margins, and you're looking at your guidance, you expect that to persist for the balance of the year. But is there any thought, given the state of the consumer, given how the consumer is behaving, to get more selectively promotional here to drive better sales?

Question: Anthony Chukumba - Loop Capital Markets - Analyst : What are you seeing in terms of the competitive landscape? I mean particularly, given the fact that as you mentioned, consumers are really kind of in a pressure right now. Is it just getting any more promotional out there? I mean, anything notable that you would point out there?

Question: Simeon Gutman - Morgan Stanley - Analyst : Following up on the prior question. Steve, if you look at the holistic spread between the comps of new stores and mature stores, however way you can segment them, is that spread roughly holding? Did it narrow, did it widen if you look first to second quarter?

Question: Simeon Gutman - Morgan Stanley - Analyst : Okay. And then a quick follow-up. The gross margin performance and guidance looks good in light of what's happening in the backdrop. Does any of this year's gross margin gains preclude how it flows in '25? How much you can improve next year? I don't know if on DC side or inventory. Is there anything that you're kind of I don't know if you pull forward in any way, but how to think about that?

Question: Justin Kleber - Baird - Analyst : First, just on gross margin. Steve and Carl, you mentioned inventory cost management. Can you comment just on how merchandise margins performed during 2Q and what your guidance assumes for merch margins across the back half of the year? .

Question: Justin Kleber - Baird - Analyst : Got it. Okay. Very helpful. And then just given last year's extra week and the fact each quarter this year starts one week later, what was the sales and EPS benefit here in 2Q? And can you provide just any color on what that calendar shift headwind will look like as it reverses across the back half of the year, just so we have our models calibrated appropriately? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2024 / 2:00PM, ASO.OQ - Q2 2024 Academy Sports and Outdoors Inc Earnings Call

Question: Cristina Fernandez - Telsey Advisory Group - Analyst : I wanted to ask about the improvement you saw in August. Were there specific categories that had more of a benefit? And can you talk about what the improvement mostly in traffic or conversion, just to understand what led to the better trend?

Question: Cristina Fernandez - Telsey Advisory Group - Analyst : And then my second question is on the private brands. Can you talk in more detail around the performance in are you seeing the consumer gravitate to those brands? Are you seeing trade down within categories? Just wanted to see the how is the consumer responding to your value offering? Are you seeing kind of like a shift from bigger ticket items to lower ticket within categories?

Question: Christopher Horvers - JPMorgan - Analyst : So just wanted to follow up on the August comment. Can you maybe, back into like maybe a slightly positive comp. Like to what degree was August

Question: Christopher Horvers - JPMorgan - Analyst : Got it. Makes sense. And then just broadly, you mentioned the calendar shift as to the impact of sales. Any other cadence items just to think about in the balance of the year, whether it's timing of opens, maybe how gross margin, those gross margin drivers perhaps play out in the back half?

Question: Christopher Horvers - JPMorgan - Analyst : Meaning that would affect the comp for 3Q because your report shifted?

Question: Robby Ohmes - Bank of America - Analyst : As you guys look to the back half year and especially the holiday, can you talk a little bit about how you feel about the merchandising setup for the back half? Are you looking for better allocations from some of the key brands? Are you feeling like the YETI, the Stanley drinkware, et cetera? I mean, is that do you think you're going to have even a better setup for the back half than you did for the first half from Nike? Are there any other footwear brands that might be coming in for the back half that weren't there in the front half? Any kind of thoughts on that would be great.

Question: Robby Ohmes - Bank of America - Analyst : Got you. That's helpful. And then a quick follow-up. Did you guys give the digital percent of sales for the quarter? And also related to that, is Door Dash expected to drive up digital penetration, the trajectory there for the back half?