Academy Sports And Outdoors Inc ( ASO ) shares are trading lower after the company reported worse-than-expected first-quarter FY24 earnings.

The sports goods retailer reported a first-quarter sales decline of 1.4% year-on-year to $1.36 billion, missing the analyst consensus estimate of $1.38 billion.

Comparable sales declined 5.7%. Adjusted EPS of $1.08 missed the analyst consensus estimate of $1.24.

Gross margin contracted 40 basis points Y/Y to 33.4%, and gross profit declined 2.4% to $455.8 million.

Operating margin was 7.5%, and operating income for the quarter decreased 18.9% to $102.4 million. Adjusted EBITDA for the quarter totaled $142.6 million.

The company held $378.1 million in cash and equivalents as of May 4. The operating cash flow for the year totaled $199.7 million.

“As expected, our first quarter results reflect that our customers remain under pressure in the current economic environment,” said CEO Steve Lawrence.

On June 7, Academy’s Board of Directors declared a quarterly cash dividend of $0.11 per share of common stock, payable on July 18 to stockholders of record as of the close of business on June 20.

Outlook: Academy reiterated its previous sales and net income guidance for fiscal 2024, while updating its EPS forecast to reflect the share repurchase activity completed in the first quarter.

Academy expects FY24 sales of $6.070 billion – $6.350 billion versus the consensus estimate of $6.24 billion.

ASO raised FY24 EPS outlook from $5.90 – $6.90 to $6.05 – $7.05, against the estimate of $6.82. It sees comparable sales of (4)% to 1%. In 2024, the company plans to open 15-17 new stores.

Related: Academy Sports Teams Up With DoorDash To Simplify Back-To-School Shopping

Price Action: ASO shares traded lower by 3.04% at $51.80 at the last check Tuesday.