10:38 AM EDT, 06/11/2024 (MT Newswires) -- Academy Sports & Outdoors' (ASO) fiscal first-quarter results declined annually and missed market expectations, but the sporting goods retailer lifted its full-year profit outlook reflecting its share repurchase activity in the prior three-month period.

Adjusted earnings came in at $1.08 a share for the quarter ended May 4, down from $1.30 the year before, the company said Tuesday, while the consensus on Capital IQ was for $1.22. Sales edged 1.4% lower to $1.36 billion, falling short of the Street's view for about $1.38 billion.

Comparable sales dropped 5.7% versus the 3.7% decline modeled by analysts. Shares of the company fell 2% in early Tuesday trading.

"As expected, our first-quarter results reflect that our customers remain under pressure in the current economic environment," Chief Executive Steve Lawrence said in a statement. "We are pleased that we drove a positive comp in our new stores and omnichannel business."

Gross margin as a percentage of sales was 33.4% for the quarter, compared with 33.8% last year. Selling, general and administrative expenses widened to $353.4 million from $340.9 million. The company opened two new stores in the period and reaffirmed its plans to launch 15 to 17 new branches in fiscal 2024.

Academy now anticipates GAAP EPS to come in between $6.05 and $7.05 for the full year, up from its prior projections of $5.90 to $6.90. The Street is looking for GAAP EPS of $6.65. The company invested $32 million of capital back into the business and repurchased $123.5 million in stock in the first quarter, Chief Financial Officer Carl Ford said.

"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," according to Ford. "We are focused on driving traffic, managing our inventory to maintain margins, and controlling expenses as we invest in our growth initiatives."

Academy continues to expect sales of $6.07 billion to $6.35 billion for fiscal 2024, while the market's forecast is for $6.25 billion. The company also reiterated its comparable sales guidance range of a 4% decline to a 1% increase. Analysts are currently estimating a same-store sales decrease of 0.9%.

Price: 52.95, Change: -0.47, Percent Change: -0.88