Academy Sports and Outdoors Inc Q3 2024 Earnings Call Transcript

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

Question: Emily Ghosh - Goldman Sachs & Co. LLC - Analyst : This is Emily Ghosh on for Kate. We were wondering on consumer trends, were there any behavioral differences in the third quarter versus the first half of the year that you would call out? And then also, you had mentioned an increase in credit card and buy now pay later usage earlier this year, is that something that you saw in the third quarter as well? Thank you.

Question: Emily Ghosh - Goldman Sachs & Co. LLC - Analyst : Thank you.

Question: Robert Ohmes - Bank of America - Analyst : Oh, hey, good morning guys. My first question is, can you give us a little more color on the Nike product that's going to be coming in, in April? Is it a lot more $100-plus sneakers? Is it a lot more premium apparel? Any more color you can give on what's happening there? That would be my first question.

Question: Robert Ohmes - Bank of America - Analyst : Got you. And then just in terms of what you've seen playing out versus last year, how would you say the competitive pressures versus Walmart or DICK'S are this year compared to last year as you go into holiday here? And also be curious how digital is playing out versus in-store compared to last year? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 10, 2024 / 3:00PM, ASO.OQ - Q3 2024 Academy Sports and Outdoors Inc Earnings Call

Question: Robert Ohmes - Bank of America - Analyst : And then just digital versus in-store versus your expectations?

Question: Robert Ohmes - Bank of America - Analyst : Got you. Thanks. Good luck for the rest of the holidays.

Question: Michael Lasser - UBS - Analyst : Good morning. Thank you so much for taking my questions. If you start to see your sales inflect -- your same-store sales inflect. How is your SG&A going to flex as well? Will you have to add back some labor expenses in order to sustain the customer experience. So if you were to comp up two to three next year, what was your SG&A leverage look?

Question: Michael Lasser - UBS - Analyst : And understanding your current guidance is for 20 to 25 new stores next year, if we play out the other scenario where your same-store sales do not inflect, how would that influence your willingness and ability to continue to open stores at this current pace, not only in next year, but over the next few years?

Question: Anthony Chukumba - Loop Capital Markets - Analyst : Good morning. Thanks for taking my question. So just wanted to kind of circle back on Nike. It sounds like there's a lot of excitement around this launch. I understand there's somewhat limited in terms of what you can say. But I guess my question is, are you envisioning that product would just be in line? Or are you planning on doing any sort of like incremental special kind of Nike fixturing or displays for that product?

Question: Anthony Chukumba - Loop Capital Markets - Analyst : Got it. Okay. So my follow-up question, it's sort of an oblique question. So I guess I always ask about companies that rhyme with [non and ROCA] and I guess my question is, do you think that in any way you perform getting this incremental Nike product could help to get other brands that are currently not in your stores that might rhyme with [non and ROCA].

Question: Anthony Chukumba - Loop Capital Markets - Analyst : Got it. Thanks so much.

Question: Simeon Gutman - Morgan Stanley - Analyst : Good morning, everyone. My first question is a follow-up on the quarter-to-date commentary. You talked about being pleased and then the shape of the holiday season. Can I ask just how you set the guide for the fourth quarter where you're pleased or do you have enough sort of runway or pleased enough where even accounting for the calendar you can end up hitting either middle or better than the range or certain events have to take place? I know there's a lot of important weeks left. But just curious how you set it up, whether you said, Hey, first -- good first start, but then we still have to account for the fewer days in order to get back to that guidance.

Question: Simeon Gutman - Morgan Stanley - Analyst : Thanks for that. And then following up on stores and new stores. You may have mentioned this in the prepared and I missed it. you gave us some commentary on prior quarters on the stores that are just entering into comp base. And then I think the two-year-old like -- the stores that are now two years into the comp base, can you talk about their spread relative to the rest of the chain, where they should be? Are they ebbing and flowing with the comp? Or are they saying, they're keeping the spread that they had, I think, over the last couple of quarters?

Question: Simeon Gutman - Morgan Stanley - Analyst : Thanks guys. Good luck. Happy holidays. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 10, 2024 / 3:00PM, ASO.OQ - Q3 2024 Academy Sports and Outdoors Inc Earnings Call

Question: Anna Glaessgen - B. Riley Securities - Analyst : Hi, good morning guys. Thank you for my questions. I'd like to start with another follow-up on the quarter debate trend, taking a little bit of a different stab at it. Apparel was impacted during the most recent quarter. Notably by the unseasonable weather. As you've moved into this quarter and the weather turned a bit. Have you seen an improvement in apparel?

Question: Anna Glaessgen - B. Riley Securities - Analyst : Great. And then shifting gears, the negative comps you guys have been running has gotten a lot of attention as people comp it to the larger public peer. But I think missed in conversation is smaller specialty players that are likely running below the comps that you guys have been putting up as we've seen a little bit of consolidation in the space. How do you -- what's your outlook for the potential share opportunity as you look to '25 and beyond?

Question: Anna Glaessgen - B. Riley Securities - Analyst : Great, thanks and good luck with the rest of the holiday.