Academy Sports Could Face Impact From Weak Outdoor Product Demand In Q2, Analyst Warns of Margin Pressure
Portfolio Pulse from Nabaparna Bhattacharya
Telsey Advisory Group analyst Cristina Fernández reiterated an Outperform rating on Academy Sports And Outdoors, Inc. (NASDAQ:ASO) with a price target of $72. The analyst is cautious about Academy's Q2 results due to weak outdoor product demand, as indicated by Dick's Sporting Goods Inc (NYSE:DKS). Fernández expects Academy's Q2 same-store sales to slump 9% Y/Y and forecasts operating margin compression. However, she views Academy Sports as a unit and sales growth story driven by market share gains.
August 29, 2023 | 5:19 pm
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NEGATIVE IMPACT
Academy Sports And Outdoors, Inc. (NASDAQ:ASO) could face margin pressure due to weak outdoor product demand. The company's Q2 same-store sales are expected to slump 9% Y/Y.
The analyst's warning of margin pressure due to weak outdoor product demand could negatively impact Academy Sports' stock price in the short term. The expected slump in Q2 same-store sales further supports this negative outlook.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Dick's Sporting Goods Inc (NYSE:DKS) has commented on lower demand for outdoor products, which has led to industry markdowns.
Dick's Sporting Goods' commentary on lower demand for outdoor products could indicate a broader industry trend, which may negatively impact the company's stock price in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50