ASO - Here's Why Academy Sports Stock Jumped Higher on Thursday
2023-08-31 11:23:53 ET
Shares of athletic retailer Academy Sports and Outdoors (NASDAQ: ASO) jumped higher on Thursday, ironically after the company reported that its business slowed down during its fiscal second quarter, which ended in July. The company's net sales were down 6.2% year over year, leading to a 17% drop in net income.
However, investors seem willing to forgive the slowdown because it's happening with companies across the sector -- this isn't unique to Academy Sports. Moreover, in certain metrics, the company's results and guidance were stronger than some of its competitors. And that's why the stock was up a hearty 15% as of 10:30 a.m. ET on Thursday.
Second-quarter net income of $157 million was down year over year, but analysts actually expected worse from Academy Sports. These low expectations could be related to its larger rival Dick's Sporting Goods , whose gross profit margin has fallen due to higher theft in its stores. However, Academy Sports' gross margin improved in the second quarter to 35.6% compared to a gross margin of 35.3% in the prior-year quarter.
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Here's Why Academy Sports Stock Jumped Higher on Thursday