Academy Sports + Outdoors Announces New $700 Million Share Repurchase Program and Quarterly Cash Dividend

Rhea-AI Summary

Academy Sports and Outdoors (ASO) has announced two significant shareholder initiatives. First, the Board of Directors approved a new $700 million share repurchase program, replacing the previous program which had $423 million remaining. The new program will be effective from December 4, 2024, for three years. Second, the company declared a quarterly cash dividend of $0.11 per share for the fiscal quarter ended November 2, 2024, payable on January 15, 2025, to stockholders of record as of December 18, 2024.

Positive

• Authorization of larger $700 million share repurchase program
• Continuation of quarterly dividend payments showing financial stability
• Long-term commitment with 3-year buyback timeframe

Negative

• Early termination of previous buyback program with $423 million still unused

Insights

Financial Analyst

This significant $700 million share repurchase program represents approximately 20% of Academy's current market capitalization, demonstrating strong confidence in the company's financial position and future prospects. The new program is notably larger than the remaining $423 million from the previous authorization, indicating an aggressive capital return strategy.

The quarterly dividend of $0.11 per share, while modest, maintains the company's commitment to returning capital to shareholders through multiple channels. The combined approach of share buybacks and dividends provides flexibility in capital allocation while potentially supporting stock price stability. The three-year timeframe for the buyback program allows for strategic execution based on market conditions and company valuation.

Market Research Analyst

This capital return initiative comes at a strategic time when retail stocks face market pressures. The substantial buyback program could provide significant support for the stock price, especially during market volatility. The replacement of the existing program with a larger authorization signals management's view that the stock may be undervalued at current levels.

The timing of the dividend payment in January 2025 and the extended buyback period demonstrate a balanced approach to long-term shareholder returns. This comprehensive capital return strategy positions Academy competitively among retail peers, potentially attracting value-oriented investors seeking companies with strong cash flow management and shareholder-friendly policies.

KATY, Texas, Dec. 04, 2024 (GLOBE NEWSWIRE) -- Academy Sports and Outdoors, Inc. (the “Company” or “Academy”) (Nasdaq: ASO) announced today that its Board of Directors approved a new share repurchase program authorizing the Company to repurchase up to $700 million of its outstanding common stock. This new share repurchase program replaces the preceding share repurchase program, of which $423 million remained at the time this new program was approved, and is effective as of December 4, 2024, for a period of three years.

The Company also announced today that its Board of Directors approved the declaration of a quarterly cash dividend with respect to the fiscal quarter ended November 2, 2024, of $0.11 per share of the Company's common stock. The dividend is payable on January 15, 2025, to stockholders of record as of the close of business on December 18, 2024.

About Academy Sports + Outdoors
Academy is a leading full-line sporting goods and outdoor recreation retailer in the United States. Originally founded in 1938 as a family business in Texas, Academy has grown to 298 stores across 19 states. Academy’s mission is to provide “Fun for All” and Academy fulfills this mission with a localized merchandising strategy and value proposition that strongly connects with a broad range of consumers. Academy’s product assortment focuses on key categories of outdoor, apparel, sports & recreation and footwear through both leading national brands and a portfolio of private label brands. For more information, visit www.academy.com.   

Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on the Company's current expectations and are not guarantees of future performance. The forward-looking statements include, among other things, statements regarding the payment of the dividend, including the timing and amount thereof, share repurchases by the Company, the Company's expectations regarding its future performance, and the Company's future financial condition to support future dividend and share repurchase program growth, and are subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. Actual results may differ materially from these expectations due to factors that are set forth in Academy's filings with the U.S. Securities and Exchange Commission. Any forward-looking statement in this press release speaks only as of the date of this release. The Company undertakes no obligation to publicly update or review any forward-looking statement, except as may be required by any applicable securities laws.

Investor Contact	Media Contact
Brad Morris	Meredith Klein
Director of Strategic Initiatives	Vice President of Communications
832-739-4373	346-823-6615
brad.morris@academy.com	meredith.klein@academy.com

FAQ

What is the size of Academy Sports (ASO) new share repurchase program?

Academy Sports (ASO) announced a new $700 million share repurchase program effective December 4, 2024.

When will ASO pay its latest quarterly dividend?

ASO will pay a quarterly dividend of $0.11 per share on January 15, 2025, to stockholders of record as of December 18, 2024.

How long will ASO's new share repurchase program last?

The new share repurchase program will be effective for a period of three years from December 4, 2024.

How much remained in ASO's previous share repurchase program?

ASO's previous share repurchase program had $423 million remaining when it was replaced by the new program.