Sep. 30 at 3:49 PM
Barclays initiated coverage of Academy Sports and Outdoors with a Equal Weight rating and
$51 price target, citing the retailer’s expansion plans and strong private-label portfolio, offset by inventory challenges and a tough competitive environment. The company plans ~160 new store openings over the next four years, with private brands representing nearly a quarter of sales. Fiscal 2024 sales fell to
$5.9B from
$6.8B in 2021, with Q2 2025 comps rising 0.2% after nine consecutive declines. Margins have also declined due to tariffs and higher investments, with gross margin at 33.9% and adjusted EBIT margin at 9.5%. Barclays noted sustained sales growth, margin improvement, and operational leverage will be key to achieving long-term profitability targets.
$ASO