Academy Sports + Outdoors Increases Quarterly Cash Dividend

Rhea-AI Summary

Academy Sports and Outdoors, Inc. (ASO) increases quarterly dividend by 22% to $0.11 per share for the fiscal quarter ended February 3, 2024.

Insights

Financial Analyst

The announcement of Academy Sports and Outdoors, Inc.'s increased quarterly cash dividend is a positive signal for investors, indicative of the company's financial health and management's confidence in its cash flow stability and future earnings. The 22% increase in dividend payout is substantial, surpassing the more common single-digit percentage increases seen in stable dividend-paying companies. It is crucial to assess the payout ratio to ensure that the dividend is sustainable and not at the expense of necessary capital reinvestment or debt reduction.

Furthermore, an increased dividend can attract income-focused investors, potentially leading to a more stable shareholder base. However, investors should also consider the overall yield in the context of the current share price to determine the attractiveness of the investment relative to other opportunities.

Market Research Analyst

The retail sector, particularly sporting goods, is highly competitive and Academy Sports and Outdoors' ability to increase its dividend may reflect a competitive advantage or a strong market position. It is important to analyze the company's recent earnings reports, sales growth and market share trends to understand the underlying drivers of this financial decision.

Additionally, the timing of the dividend increase could be strategic, aligning with broader economic conditions or consumer spending trends. Understanding the macroeconomic environment and consumer behavior can provide insights into the potential long-term sustainability of the company's growth and its ability to maintain or increase dividends in the future.

Economist

Dividend policy changes, such as the one announced by Academy Sports and Outdoors, can be influenced by broader economic factors. In a low-interest-rate environment, an increase in dividends can make a company's stock more attractive compared to fixed-income alternatives. Conversely, if interest rates are rising, the relative appeal of dividend stocks might diminish.

Investors should also consider the potential impact of inflation on disposable income and consumer spending, as these factors could affect the company's future revenue and profitability. An understanding of fiscal and monetary policies, as well as consumer confidence indices, can provide a more comprehensive view of the potential risks and opportunities for the company in the current economic climate.

KATY, Texas, March 7, 2024 /PRNewswire/ -- Academy Sports and Outdoors, Inc. (the "Company" or "Academy") (Nasdaq: ASO) announced today that its Board of Directors declared a quarterly cash dividend with respect to the fiscal quarter ended February 3, 2024 of $0.11 per share of the Company's common stock, a 22% increase from the previous quarterly dividend payment. The dividend is payable on April 18, 2024, to stockholders of record as of the close of business on March 26, 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 282 stores across 18 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 Academy'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, the Company's expectations regarding its future performance, and the Company's future financial condition to support future dividend 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. Academy undertakes no obligation to publicly update or review any forward-looking statement, except as may be required by any applicable securities laws.

Media inquiries:
Elise Hasbrook, Vice President Communications
281.253.8200
elise.hasbrook@academy.com

Investor inquiries:
Matt Hodges, Vice President Investor Relations
281.646.5362
matt.hodges@academy.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/academy-sports--outdoors-increases-quarterly-cash-dividend-302083535.html

SOURCE Academy Sports + Outdoors

FAQ

What is the new quarterly dividend per share declared by Academy Sports and Outdoors, Inc. (ASO)?

The new quarterly dividend per share declared by Academy Sports and Outdoors, Inc. (ASO) is $0.11.

What was the percentage increase in the quarterly dividend payment by Academy Sports and Outdoors, Inc. (ASO)?

The quarterly dividend payment by Academy Sports and Outdoors, Inc. (ASO) increased by 22%.

When will the dividend be payable to stockholders of Academy Sports and Outdoors, Inc. (ASO)?

The dividend will be payable on April 18, 2024, to stockholders of Academy Sports and Outdoors, Inc. (ASO) of record as of March 26, 2024.