16 unchanged sentences
We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.
−Removed: The following is a summary of the principal factors that make an investment in our securities speculative or risky (all of which are more fully described in the section entitled "Risk Factors" in the Annual Report):
+Added: The following is a summary of the principal factors that make an investment in our securities speculative or risky (all of which are more fully described in the section entitled "Risk Factors" in the Annual Report, as the same may be updated by subsequent Forms 10-Q):
Risks Related to Our Business and Industry
• overall decline in the health of the economy and consumer discretionary spending;
−Removed: • our ability to predict or effectively react to changes in consumer tastes and preferences, to acquire and sell brand name merchandise at competitive prices and/or to manage our inventory balances;
−Removed: • risks associated with our reliance on internationally manufactured merchandise;
−Removed: • our ability to safeguard sensitive or confidential data relating to us and our customers, team members and vendors;
+Added: • our ability to predict or effectively react to changes in consumer tastes and preferences, to acquire and sell brand name merchandise at competitive price s and/or to manage our inventory balances;
+Added: • risks associated with our reliance on internationally manufactured merchandise, including in China, which exposes us to various international risks, including potential tariffs, that could have a material adverse effect on our business and results of operations;
+Added: • our ability to safegua rd sensitive or confidential data relating to us and our customers, team members and vendors;
• intense competition in the sporting goods and outdoor recreation retail industries;
39 unchanged sentences
Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, our actual results may vary in material respects from those projected in these forward-looking statements.
−Removed: The following discussion and analysis of our financial condition and results of operations should be read together with our unaudited financial statements and related notes included elsewhere in this Quarterly Report for the thirteen and twenty-six weeks ended August 3, 2024 and our audited financial statements for the fiscal year ended February 3, 2024 and the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in the Annual Report.
+Added: The following discussion and analysis of our financial condition and results of operations should be read together with our unaudited financial statements and related notes included elsewhere in this Quarterly Report for the thirteen and thirty-nine weeks ended November 2, 2024 and our audited financial statements for the fiscal year ended February 3, 2024 and the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in the Annual Report.
All references to "Academy," "Academy Sports + Outdoors," "ASO, Inc.," "we," "us," "our" or the "Company" in this Quarterly Report refer to Academy Sports and Outdoors, Inc., a Delaware corporation and the current parent holding company of our operations, and its consolidated subsidiaries.
2 unchanged sentences
References to any year, quarter, or month mean our fiscal year, fiscal quarter, and fiscal month, respectively, unless the context requires otherwise.
−Removed: References to the "current quarter," "2024 second quarter," or similar reference refers to the thirteen week period ended August 3, 2024, and any reference to the "prior year quarter," "2023 second quarter" or similar reference refers to the thirteen week period ended July 29, 2023.
+Added: References to the "current quarter," "2024 third quarter," or similar reference refers to the thirteen week period ended November 2, 2024, and any reference to the "prior year quarter," "2023 third quarter" or similar reference refers to the thirteen week period ended October 28, 2023.
Unless otherwise specified, all comparisons regarding the current period of 2024 are made to the corresponding period of 2023.
1 unchanged sentence
Our mission is to provide “Fun for All”, and we fulfill this mission with a localized merchandising strategy and value proposition that deeply connect with a broad range of consumers.
−Removed: Our product assortment focuses on key categories of outdoor, sports and recreation, apparel, and footwear (representing 25%, 26%, 28%, and 20% of our 2024 second quarter net sales, respectively) through both leading national brands and a portfolio of private label brands, which go well beyond traditional sporting goods and apparel offerings.
+Added: Our product assortment focuses on key categories of outdoor, sports and recreation, apparel, and footwear (representing 32%, 21%, 26%, and 21% of our 2024 third quarter net sales, respectively) through both leading national brands and a portfolio of private label brands, which go well beyond traditional sporting goods and apparel offerings.
We sell a range of sporting and outdoor recreation products, including sporting equipment, apparel, footwear, camping gear, patio furniture, outdoor cooking equipment, and hunting and fishing gear, among many others.
2 unchanged sentences
We provide locally relevant offerings, such as crawfish boilers in Louisiana, licensed apparel for area sports fans, baits and lures for area fishing spots, and beach towels in coastal markets.
−Removed: As of August 3, 2024, we operated 285 stores that range in size from approximately 40,000 to 137,000 gross square feet, with an average size of approximately 70,000 gross square feet, throughout 19 contiguous states located primarily in the southern United States.
+Added: As of November 2, 2024, we operated 293 stores that range in size from approximately 40,000 to 137,000 gross square feet, with an average size of approximately 70,000 gross square feet, throughout 19 contiguous states located primarily in the southern United States.
Our stores are supported by approximately 23,000 team members, three distribution centers, and our e-commerce platform, which includes our website at www.academy.com and our mobile app.
1 unchanged sentence
The following table summarizes store activity for the periods indicated:
−Removed: Twenty-Six Weeks Ended
−Removed: August 3, 2024 July 29, 2023
+Added: Thirty-Nine Weeks Ended
+Added: November 2, 2024 October 28, 2023
Beginning stores 282 268
1 unchanged sentence
Q2 new stores 1 1
+Added: Q3 new stores 8 5
Ending stores 293 275
25 unchanged sentences
The Company's 2024 fiscal year is a 52-week year, whereas the 2023 fiscal year was a 53-week year, which created a o ne week shift.
−Removed: The comparable sales metric for the 2024 second quarter compares the thirteen and twenty-six weeks ended August 3, 2024 versus the thirteen and twenty-six weeks ended August 5, 2023.
−Removed: The prior year rate of decline in comparable store sales slowed in year-to-date 2024 compared to the two prior year periods, with a decrease of 6.4% compared to 7.4% and 6.7% in 2023 and 2022, respectively.
+Added: The comparable sales metric for the 2024 third quarter compares the thirteen and thirty-nine weeks ended November 2, 2024 versus the thirteen and thirty-nine weeks ended November 4, 2023.
+Added: The prior year rate of decline in comparable store sales slowed in year-to-date 2024 compared to the two prior year periods, with a decrease of 5.9% in 2024 compared to 7.6% and 6.9% in 2023 and 2022, respectively.
See the discussion on Net Sales below for factors contributing to these changes.
10 unchanged sentences
Net sales are derived from in-store and e-commerce merchandise sales, net of sales tax and an allowance for merchandise returns.
−Removed: Net sales fluctuations can be driven by new store openings, comparable sales increases or decreases including e-commerce sales, our ability to adjust inventory based on sales fluctuations, our management of vendor relations and meeting customer
−Removed: demand, allowances and logistics, seasonality, unseasonal or extreme weather, changes in consumer shopping preferences, consumer discretionary spending, and market and sales promotions.
+Added: Net sales fluctuations can be driven by new store openings, comparable sales increases or decreases including e-commerce sales, our ability to adjust inventory based on sales fluctuations, our management of vendor relations and meeting customer demand, allowances and logistics, seasonality, unseasonal or extreme weather, changes in consumer shopping preferences, consumer discretionary spending, and market and sales promotions.
We must maintain sufficient inventory levels of merchandise that our customers desire to successfully operate our business.
16 unchanged sentences
These platforms allow us to connect further with our customers for marketing and product education and assists us in introducing customers to the Academy brand by reaching customers outside of our current store footprint.
−Removed: During the 2024 year-to-date second quarter, stores facilitated approximately 95% of our total sales, including ship-from-store, BOPIS and in-store retail sales.
+Added: During the 2024 year-to-date third quarter, stores facilitated approximately 95% of our total sales, including ship-from-store, BOPIS and in-store retail sales.
We expect to continue to invest in expanding and enhancing our omnichannel capabilities, including our mobile app, optimizing the web site experience and upgrading our fulfillment capabilities, which will continue to require further investments by us.
7 unchanged sentences
Our gross margin depends on a number of factors, such as net sales increases or decreases, our promotional activities, product mix including private label merchandise sales, and our ability to control cost of goods sold, such as inventory and logistics cost management.
−Removed: Our gross margin is also impacted by variables including commodity costs, freight costs, shrinkage (discussed below), inventory processing costs and e-commerce shipping costs.
+Added: Our gross margin is also impacted by variables includi ng duties, c ommodity costs, freight costs, shrinkage (discussed below), inventory processing costs and e-commerce shipping costs.
We track and measure gross margin as a percentage of net sales in order to evaluate our performance against profitability targets.
5 unchanged sentences
These expenses are both variable and fixed in nature.
−Removed: SG&A expenses as a percentage of sales increased from 23.4% in the 2023 year-to-date second quarter to 24.8% in the 2024 year-to-date second quarter, which was primarily attributable to our store growth strategy as well as deleverage from decreased sales, partially offset by favorable reductions in equity compensation .
+Added: SG&A expenses as a percentage of sales increased from 23.8% in the 2023 year-to-date third quarter to 25.5% in the 2024 year-to-date third quarter, which was primarily attributable to our store growth strategy as well as deleverage from decreased sales, partially offset by favorable reductions in equity compensation .
We track and measure operating expenses as a percentage of net sales in order to evaluate our performance against profitability targets.
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The following table summarizes our pre-opening expense activity for the periods presented:
−Removed: Thirteen Weeks Ended Twenty-Six Weeks Ended
−Removed: August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023
+Added: Thirteen Weeks Ended Thirty-Nine Weeks Ended
+Added: November 2, 2024 October 28, 2023 November 2, 2024 October 28, 2023
Number of new stores opened 8 5 11 7
8 unchanged sentences
federal, state, and local income tax purposes and accordingly, a provision for income taxes has been recorded for the anticipated tax consequences of our reported results of operations for federal, state and local income taxes.
−Removed: Recent fluctuations in income tax expense have been primarily as a result of changes in income before income taxes.
+Added: Recent fluctuations in income tax expense have been primarily a result of changes in income before income taxes.
Results of Operations
−Removed: Thirteen Weeks Ended August 3, 2024 Compared to Thirteen Weeks Ended July 29, 2023
+Added: Thirteen Weeks Ended November 2, 2024 Compared to Thirteen Weeks Ended October 28, 2023
The following table sets forth amounts and information derived from our unaudited statements of income for the periods indicated as follows (dollar amounts in thousands):
Thirteen Weeks Ended Change
−Removed: August 3, 2024 July 29, 2023 Dollars Percent
+Added: November 2, 2024 October 28, 2023 Dollars Percent
Net sales $ 1,343,330 100.0 % $ 1,397,777 100.0 % $ (54,447) (3.9) %
9 unchanged sentences
*Percentages in table may not sum properly due to rounding.
−Removed: Net sales decreased $34.1 million, or 2.2%, in the 2024 second quarter from the prior year second quarter as a result of decreased comparable sales of 6.9% , partially offset by additional sales generated by new locations.
−Removed: As of the end of the 2024 second quarter, we operated 15 additional stores as compared to the end of the 2023 second quarter, and we had the full benefit of one store opened during the 2023 second quarter.
−Removed: Collectively, these stores accounted for a $41.7 million increase in net sales in the current quarter compared to the 2023 second quarter, not including e-commerce sales fulfilled from these locations.
−Removed: The decrease of 6.9% in comparable sales was driven by lower comparable sales across all merchandise divisions as a result of a 7.4% decrease in comparable transactions, partially offset by an increase in average ticket of 0.5%.
−Removed: The decrease of 2.2% in net sales was driven by decreased sales of 7.3% in the sports and recr eation merchandise division and 2.2% in the apparel merchandise division, partially offset by increased sales of 1.3% in the footwear merchandise division and 0.8% in the outdoors merchandise division.
−Removed: The decrease in net and comparable sales primarily reflected challenging macroeconomic conditions.
−Removed: Additionally, a temporary reduction in outbound shipments at our Georgia distribution center related to a new warehouse management information system resulted in a decrease of approximately 2% in both net and comparable sales and several regional severe weather events resulted in a decrease of approximately 1% in both net and comparable sales.
−Removed: E-commerce net sales represented 9.7% of merchandise sales for the 2024 second quarter compared to 9.4% for the prior year second quarter.
+Added: Net sales decreased $54.4 million, or 3.9%, in the 2024 third quarter from the prior year third quarter.
+Added: This is primarily a result of decreased comparable sales, which was partially offset by $34.6 million of net sales, including e-commerce, generated by 18 new stores opened since the end of the 2023 third quarter.
+Added: Since re-launching our new store program in 2022, we have opened 34 new stores, 16 of which have been open for at least twelve months.
+Added: Over the last twelve months, those 16 stores have averaged approximately $13 million in net sales per store, including e-commerce.
+Added: Performance of new stores in year one is highly dependent on which season the new store opens and the brand awareness in the region the new store opens.
+Added: Comparable sales decreased 4.9% driven by lower comparable sales across all merchandise divisions, except outdoor, as a result of a 7.1% decrease in comparable transactions, partially offset by an increase in average ticket of 2.4% .
+Added: The decrease of 3.9% in net sales was driven by decreased sales of 8.8% in the sports and recr eation merchandise division, 8.6% in the apparel merchandise division and 7.5% in the footwear merchandise division, partially offset by increased sales of 7.0% in the outdoor merchandise division.
+Added: Additionally, we experienced a challenging month in October 2024 with unseasonably warm temperatures across our footprint along with lapping the Rangers World Series run in the prior year, which collectively resulted in a decrease of 2.7% in net sales and 2.6% in comparable sales for the 2024 third quarter .
+Added: E-commerce net sales represented 8.8% of merchandise sales for the 2024 third quarter compared to 9.4% for the prior year third quarter.
Gross Margin.
−Removed: Gross margin decreased $4.7 million, or 0.8%, to $558.7 million in the 2024 second quarter from $563.4 million in the 2023 second quarter.
−Removed: As a percentage of net sales, gross margin increased 50 basis points from 35.6% in the 2023 second quarter to 36.1% in the 2024 second quarter.
−Removed: The increase in gross margin was primarily attributable to product cost management, including lower transportation costs.
−Removed: These improvements were partially offset by increased planned promotional activity compared to the 2023 second quarter.
+Added: Gross margin decreased $25.9 million, or 5.4%, to $456.7 million in the 2024 third quarter from $482.6 million in the 2023 third quarter.
+Added: As a percentage of net sales, gross margin decreased 50 basis points from 34.5% in the 2023 third quarter to 34.0% in the 2024 third quarter.
+Added: The decrease of 50 basis points in gross margin was primarily attributable to:
+Added: • 30 basis points of unfavorability in merchandise margin as a result of 40 basis points of margin deleverage due to increased penetration of our outdoor merchandise division from a 7.0% increase in outdoor net sales ;
+Added: • 20 basis points of unfavorability due to increased supply chain costs associated with our transition to a new warehouse management system at our Georgia distribution center and increased freight costs.
Selling, General and Administrative Expenses.
−Removed: SG&A expenses increased $16.2 million, or 4.6%, to $368.6 million in the 2024 second quarter as compared to $352.5 million in the 2023 second quarter.
−Removed: As a percentage of net sales, SG&A expenses increased 150 basis points to 23.8% in the 2024 second quarter compared to 22.3% in the 2023 second quarter.
−Removed: The increase in SG&A is partially attributable to deleverage from decreased sales.
−Removed: SG&A costs also increased $16.2 million primarily as a result of our increased strategic investments of $17.1 million in new stores and technology, which was partially offset by favorable reductions in equity compensation.
+Added: SG&A expenses increased $19.3 million, or 5.6%, to $365.2 million in the 2024 third quarter as compared to $345.9 million in the 2023 third quarter, primarily driven by our increased strategic investments of $17.5 million in new stores and technology as well as deleverage from decreased sales.
Interest Expense.
−Removed: Interest expense decreased $2.2 million, or 19.8%, in the 2024 second quarter when compared with the 2023 second quarter, resulting from a lower outstanding balance on our long-term debt driven by a voluntary prepayment of $100.0 million made on February 1, 2024, slightly offset by higher interest rates.
+Added: Interest expense decreased $1.8 million, or 16.3%, in the 2024 third quarter when compared with the 2023 third quarter, resulting from a lower outstanding balance on our long-term debt driven by a voluntary prepayment of $100.0 million made on February 1, 2024.
Other (Income), net.
−Removed: Other (income), net, increased $1.9 million in the 2024 second quarter when compared with the 2023 second quarter, primarily driven by higher interest rates on increased money market investments in the current year.
+Added: Other (income), net, increased $2.3 million in the 2024 third quarter when compared with the 2023 third quarter, primarily driven by increased money market investments in the current year.
Income Tax Expense.
−Removed: Income tax expense decreased $2.2 million to $44.0 million for the 2024 second quarter as compared to $46.2 million in the 2023 second quarter, resulting primarily from a decrease in pre-tax income.
−Removed: The Company's effective income tax rate was 23.6% in the second quarter of 2024 compared to 22.7% in the second quarter of 2023.
−Removed: The increase in effective tax rate is primarily the result of a reduction in excess tax benefits for share-based compensation in 2024 compared to 2023.
−Removed: Twenty-Six Weeks Ended August 3, 2024 Compared to Twenty-Six Weeks Ended July 29, 2023
+Added: Income tax expense decreased $7.0 million to $23.0 million for the 2024 third quarter as compared to $30.0 million in the 2023 third quarter, resulting primarily from a decrease in pre-tax income.
+Added: The Company's effective income tax rate was 25.9% for the third quarter of 2024 compared to 23.1% for the third quarter of 2023.
+Added: The increase in effective tax rate was primarily the result of a reduction in excess tax benefits for share-based compensation in 2024 compared to 2023.
+Added: Thirty-Nine Weeks Ended November 2, 2024 Compared to Thirty-Nine Weeks Ended October 28, 2023
The following table sets forth amounts and information derived from our unaudited statements of income for the periods indicated as follows (dollar amounts in thousands):
−Removed: Twenty-Six Weeks Ended Change
−Removed: August 3, 2024 July 29, 2023 Dollars Percent
+Added: Thirty-Nine Weeks Ended Change
+Added: November 2, 2024 October 28, 2023 Dollars Percent
Net sales $ 4,256,530 100.0 % $ 4,364,463 100.0 % $ (107,933) (2.5) %
10 unchanged sentences
*Percentages in table may not sum properly due to rounding.
−Removed: Net sales decreased $53.5 million, or 1.8%, for the year-to-date 2024 over the year-to-date 2023 as a result of decreased comparable sales of 6.4%, which were partially offset by additional net sales generated by new locations.
−Removed: As of the end of the 2024 second quarter, we operated 15 additional stores as compared to the end of the 2023 second quarter, and we had the full benefit of two stores opened during the year-to-date 2023 second quarter.
−Removed: Collectively, these stores accounted for a $76.9 million increase in net sales for the year-to-date 2024, not including e-commerce sales fulfilled from these locations.
−Removed: The decrease of 6.4% in comparable sales was driven by lower comparable sales across all merchandise divisions as a result of a 6.1% decrease in comparable transactions while the average ticket remained relatively flat.
−Removed: The decrease of 1.8% in net sales was driven by decreased sales of 5.9% in the sports and recreation merchandise division and 2.5% in the apparel division, partially offset by an increase of 1.6% in the outdoors merchandise division, while footwear sales remained relatively flat.
−Removed: The decrease in net and comparable sales primarily reflected challenging macroeconomic conditions.
−Removed: Additionally, a temporary reduction in outbound shipments at our Georgia distribution center related to a new warehouse management information system resulted in a decrease of approximately 1% in both net and comparable sales and several regional severe weather events resulted in a decrease of approximately 0.5% in both net and comparable sales.
−Removed: E-commerce net sales represented 9.4% of merchandise sales for the year-to-date 2024 compared to 8.8% for the year-to-date 2023.
+Added: Net sales decreased $107.9 million, or 2.5%, year-to-date 2024 compared to year-to-date 2023.
+Added: This is primarily a result of decreased comparable sales, which was partially offset by $89.0 million of net sales, including e-commerce, generated by 18 new stores opened since the end of the 2023 third quarter.
+Added: Since re-launching our new store program in 2022, we have opened 34 new stores, 16 of which have been open for at least twelve months.
+Added: Over the last twelve months, those 16 stores have averaged approximately $13 million in net sales per store, including e-commerce.
+Added: Performance of new stores in year one is highly dependent on which season the new store opens and the brand awareness in the region the new store opens.
+Added: Comparable sales decreased 5.9% driven by lower comparable sales across all merchandise divisions as a result of a 6.4% decrease in comparable transactions, partially offset by an increase in average ticket of 0.5% .
+Added: The decrease of 2.5% in net sales was driven by decreased sales of 6.7% in the sports and recreation merchandise division, 4.4% in the apparel division and 2.5% in the footwear division, partially offset by an increase of 3.4% in the outdoors merchandise division.
+Added: Additionally, we experienced a challenging month in October 2024 with unseasonably warm temperatures across our footprint along with lapping the Rangers World Series run in the prior year, which collectively resulted in a decrease of approximately 1% in both net and comparable sales for the year-to-date 2024 .
+Added: E-commerce net sales represented 9.2% of merchandise sales for year-to-date 2024 compared to 9.0% for year-to-date 2023.
Gross Margin.
Gross margin decreased $42.0 million, or 2.8%, to $1,471.2 million for the year-to-date 2024 from $1,513.2 million for the year-to-date 2023.
−Removed: As a percentage of net sales, gross margin increased 10 basis points from 34.7% for the year-to-date 2023 to 34.8% for the year-to-date 2024.
−Removed: The increase in gross margin was primarily attributable to product cost management, including lower transportation costs.
−Removed: These improvements were partially offset by increased planned promotional activity compared to year-to-date 2023.
+Added: As a percentage of net sales, gross margin decreased 10 basis points from 34.7% for the year-to-date 2023 to 34.6% for the year-to-date 2024.
+Added: The decrease of 10 basis points in gross margin was primarily attributable to:
+Added: • 40 basis points of unfavorability in merchandise margin as a result of margin deleverage due to increased penetration of our outdoor merchandise division compared to year-to-date 2023;
+Added: partially offset by
+Added: • 30 basis poin ts of favorability due to product cost management, including lower shipping costs compared to year-to-date 2023 due to increased fulfillment through our BOPIS program.
Selling, General and Administrative Expenses.
−Removed: SG&A expenses increased $28.6 million, or 4.1%, to $722.1 million for the year-to-date 2024 as compared to $693.4 million for the year-to-date 2023.
−Removed: As a percentage of net sales, SG&A expenses increased 140 basis points to 24.8% for the year-to-date 2024 compared to 23.4% for the year-to-date 2023.
−Removed: The increase in SG&A is partially attributable to deleverage from decreased sales.
−Removed: SG&A costs also increased $28.6 million primarily as a result of our increased strategic investments of $33.6 million in new stores and technology, which was partially offset by favorable reductions in equity compensation.
+Added: SG&A expenses increased $48.0 million, or 4.6%, to $1,087.3 million for the year-to-date 2024 as compared to $1,039.3 million for the year-to-date 2023, primarily as a result of our increased strategic investments of $51.1 million in new stores and technology as well as deleverage from decreased sales.
Interest Expense.
−Removed: Interest expense decreased $4.0 million, or 17.7%, for the year-to-date 2024 when compared with the year-to-date 2023, resulting from a lower outstanding balance on our long-term debt driven by a voluntary prepayment of $100.0 million made on February 1, 2024, slightly offset by higher interest rates.
+Added: Interest expense decreased $5.8 million, or 17.2%, for the year-to-date 2024 when compared with the year-to-date 2023, resulting from a lower outstanding balance on our long-term debt driven by a voluntary prepayment of $100.0 million made on February 1, 2024.
Other (Income), net.
40 unchanged sentences
The following table provides reconciliations of net income to Adjusted EBITDA and to Adjusted EBIT for the periods presented (amounts in thousands):
−Removed: Thirteen Weeks Ended Twenty-Six Weeks Ended
−Removed: August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023
+Added: Thirteen Weeks Ended Thirty-Nine Weeks Ended
+Added: November 2, 2024 October 28, 2023 November 2, 2024 October 28, 2023
Net income $ 65,763 $ 99,978 $ 284,816 $ 351,023
3 unchanged sentences
Equity compensation (a)
+Added: 6,296 6,245 20,389 26,128
Write off of deferred loan costs — — 449 —
5 unchanged sentences
The following table provides a reconciliation of net income to Adjusted Net Income and Adjusted Earnings per Share for the periods presented (amounts in thousands, except per share data):
−Removed: Thirteen Weeks Ended Twenty-Six Weeks Ended
−Removed: August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023
+Added: Thirteen Weeks Ended Thirty-Nine Weeks Ended
+Added: November 2, 2024 October 28, 2023 November 2, 2024 October 28, 2023
Net income $ 65,763 $ 99,978 $ 284,816 $ 351,023
13 unchanged sentences
Represents non-cash charges related to equity-based compensation, which vary from period to period depending on certain factors such as timing and valuation of awards, achievement of performance targets and equity award forfeitures.
−Removed: For the thirteen and twenty-six weeks ended August 3, 2024 and July 29, 2023, this represents the estimated tax effect (by using the projected full year tax rates for the respective years) of the total adjustments made to arrive at Adjusted Net Income.
+Added: For the thirteen and thirty-nine weeks ended November 2, 2024 and October 28, 2023, this represents the estimated tax effect (by using the projected full year tax rates for the respective years) of the total adjustments made to arrive at Adjusted Net Income.
Adjusted Free Cash Flow
The following table provides a reconciliation of net cash provided by operating activities to Adjusted Free Cash Flow for the periods presented (amounts in thousands):
−Removed: Thirteen Weeks Ended Twenty-Six Weeks Ended
−Removed: August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023
+Added: Thirteen Weeks Ended Thirty-Nine Weeks Ended
+Added: November 2, 2024 October 28, 2023 November 2, 2024 October 28, 2023
Net cash provided by operating activities $ 96,891 $ 57,476 $ 387,912 $ 301,042
6 unchanged sentences
We fund these liquidity requirements through cash and cash equivalents, cash generated from operating activities, issuances of debt (such as the Notes) and borrowings under our ABL Facility.
−Removed: On August 3, 2024, our cash and cash equivalents totaled $324.6 million.
+Added: On November 2, 2024, our cash and cash equivalents totaled $296.0 million.
We believe our cash and cash equivalents, as well as our availability under the ABL Facility, will be sufficient to fund our cash requirements for the next 12 months and the longer term foreseeable future.
Long-Term Debt
−Removed: As of August 3, 2024, the Company's long-term debt and interest rates consist of (see Note 4 to the accompanying financial statements):
+Added: As of November 2, 2024, the Company's long-term debt and interest rates consist of (see Note 4 to the accompanying financial statements):
• Notes - 6.00% fixed rate senior secured notes with $400 million in principal outstanding and full principal maturing November 15, 2027;
13 unchanged sentences
Liquidity information related to the ABL Facility is as follows for the periods shown (dollar amounts in thousands):
−Removed: Twenty-Six Weeks Ended
−Removed: August 3, 2024 July 29, 2023
+Added: Thirty-Nine Weeks Ended
+Added: November 2, 2024 October 28, 2023
Average funds drawn $ 43 $ —
3 unchanged sentences
Liquidity information related to the ABL Facility (amounts in thousands) as of:
−Removed: August 3, 2024 February 3, 2024 July 29, 2023
+Added: November 2, 2024 February 3, 2024 October 28, 2023
Outstanding borrowings $ — $ — $ —
2 unchanged sentences
We predominantly lease store locations, distribution centers, office space and certain equipment under operating leases expiring between fiscal years 2024 and 2044.
−Removed: Operating lease obligations include future minimum lease payments under all of our non-cancelable operating leases at August 3, 2024.
+Added: Operating lease obligations include future minimum lease payments under all of our non-cancelable operating leases at November 2, 2024.
The following table summarizes our remaining operating lease obligations by fiscal year (amounts in thousands):
3 unchanged sentences
(1) Minimum lease payments have not been reduced by sublease rentals of $2.0 million due in the future under non-cancelable sub-leases.
−Removed: (2) These balances include stores where we have an executed contract but have not taken possession of the location as of August 3, 2024.
+Added: (2) These balances include stores where we have an executed contract but have not taken possession of the location as of November 2, 2024.
Share Repurchases
−Removed: On June 2, 2022, the Board of Directors of the Company authorized a share repurchase program (the "2022 Share Repurchase Program") under which the Company may purchase up to $600 million of its outstanding shares during the three-year period ending June 2, 2025.
−Removed: On November 29, 2023, the Board of Directors authorized a new share repurchase program (the "2023 Share Repurchase Program") under which the Company may purchase up to $600 million of its outstanding shares during the three-year period ending November 29, 2026.
−Removed: The 2022 Share Repurchase Program and the 2023 Share Repurchase Program are collectively referred to as the "Share Repurchase Programs".
−Removed: The Share Repurchase Programs do not obligate the Company to acquire any particular number of common shares, and the programs may be suspended, extended, modified or discontinued at any time.
−Removed: As of August 3, 2024, the Company had $476.4 million remaining for share repurchases under the Share Repurchase Programs (see Note 2 to the accompanying financial statements).
−Removed: The following table summarizes our share repurchases for the 2024 first and second quarters (dollar amounts in thousands, except per share amounts):
+Added: On November 29, 2023, the Board of Directors approved a new share repurchase program (the "2023 Share Repurchase Program") under which the Company was authorized to purchase up to $600 million of its outstanding shares during the three-year period ending November 29, 2026.
+Added: The 2023 Share Repurchase Program did not obligate the Company to acquire any particular number of common shares, and the program may be suspended, extended, modified or discontinued at any time.
+Added: As of November 2, 2024, the Company had $423.0 million remaining for share repurchases under the 2023 Share Repurchase Program (see Note 2 to the accompanying financial statements).
+Added: The following table summarizes our share repurchases for the year-to-date 2024 third quarter (dollar amounts in thousands, except per share amounts):
Total Number of Shares Purchased Average Price Paid per Share (1)
2 unchanged sentences
Second Quarter (May 5, 2024 to August 3, 2024) 1,809,856 54.09 97,900
+Added: Third Quarter (August 4, 2024 to November 2, 2024) (2)
1,044,027 51.19 53,441
1 unchanged sentence
(1) Excludes the impact of unpaid excise taxes.
−Removed: (2) See Part II, Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds for further detail on the 2024 second quarter share repurchases.
−Removed: The following table summarizes our quarterly dividend payments for 2024 first and second quarters (amounts in thousands, except per share amounts):
+Added: (2) See Part II, Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds for further detail on the 2024 third quarter share repurchases.
+Added: On December 4 2024, the Board of Directors of the Company approved a new share repurchase program (the "2024 Share Repurcha se Program", which will replace the 2023 Share Repurchase Program) under which the Company is authorized to purchase up to $700 million of its outstanding shares during the three-year period ending December 4, 2027 (see Note 11 to the accompanying financial statements).
+Added: The following table summarizes our quarterly dividend payments for the year-to-date 2024 (amounts in thousands, except per share amounts):
Dividend per Share Total Dividends Paid Stockholder Date of Record
1 unchanged sentence
Second Quarter (May 5, 2024 to August 3, 2024) 0.11 7,921 June 20, 2024
+Added: Third Quarter (August 4, 2024 to November 2, 2024) (2) 0.11 7,739 September 19, 2024
Total Dividends Paid $ 23,842
−Removed: On September 5, 2024, the Company's Board of Directors declared a quarterly cash dividend with respect to the fiscal quarter ended August 3, 2024, of $0.11 per share of the Company's common stock, payable on October 17, 2024, to stockholders of record as of the close of business on September 19, 2024.
+Added: On December 4, 2024, the Company's Board of Directors declared 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, payable on January 15, 2025, to stockholders of record as of the close of business on December 18, 2024.
Capital Expenditures
−Removed: The following table summarizes our capital expenditures for the twenty-six weeks ended August 3, 2024 and July 29, 2023 (amounts in thousands):
−Removed: Twenty-Six Weeks Ended
−Removed: August 3, 2024 July 29, 2023
+Added: The following table summarizes our capital expenditures for the thirty-nine weeks ended November 2, 2024 and October 28, 2023 (amounts in thousands):
+Added: Thirty-Nine Weeks Ended
+Added: November 2, 2024 October 28, 2023
New stores $ 73,321 $ 75,156
8 unchanged sentences
We review forecasted capital expenditures throughout the year and will adjust or our capital expenditures based on business conditions at that time.
−Removed: Cash Flows for the Twenty-Six Weeks Ended August 3, 2024 and July 29, 2023
+Added: Cash Flows for the Thirty-Nine Weeks Ended November 2, 2024 and October 28, 2023
Our unaudited statements of cash flows are summarized as follows (in thousands):
−Removed: Twenty-Six Weeks Ended
−Removed: August 3, 2024 July 29, 2023
+Added: Thirty-Nine Weeks Ended
+Added: November 2, 2024 October 28, 2023
Net cash provided by operating activities $ 387,912 $ 301,042
7 unchanged sentences
This increase in cash was attributable to:
−Removed: • $2.6 million net increase in non-cash charges;
• $147.9 million net increase in cash flows provided by operating assets and liabilities;
+Added: • $5.2 million net increase in non-cash charges;
partially offset by
1 unchanged sentence
The increase in cash flows from operating assets and liabilities was primarily attributable to:
−Removed: • $22.4 million increase in cash flows from accrued expenses and other current liabilities, primarily driven by a $21.1 million increase in accrued personnel costs related to bonuses and timing of payments;
• $86.0 million increase in cash flows from accounts payable, due to timing of payments for increased merchandise inventories relative to the prior year period;
+Added: • $73.8 million increase in cash flows from prepaid expenses and other current assets, due to timing of payments relative to the prior year period;
+Added: • $54.0 million increase in cash flows from accrued expenses and other current liabilities, primarily driven by a $25.5 million increase in accrued personnel costs related to bonuses and timing of payments;
+Added: • $52.7 million increase in cash flows from income taxes payables, due to timing of payments relative to the prior year period;
partially offset by
4 unchanged sentences
• $16.1 million lower capital expenditures, primarily driven by decreased spending related to Corporate, e-commerce, and information technology programs in the year-to-date 2024 compared to the year-to-date 2023.
−Removed: partially offset by
−Removed: • $2.1 million decrease in proceeds from the sale of property and equipment.
Financing Activities .
7 unchanged sentences
This management's discussion and analysis of our financial condition and results of operations is based upon our unaudited financial statements, which have been prepared in accordance with GAAP.
−Removed: The preparation of financial statements in conformity with GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of
−Removed: revenues and expenses during the reporting period.
+Added: The preparation of financial statements in conformity with GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period.
Our management bases its estimates on historical experience and other assumptions it believes to be reasonable under the circumstances.
9 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.