Shares of Academy Sports and Outdoors slipped after the sporting-goods retailer cut its full-year sales forecast as consumers tighten their spending ahead of the holidays.
Academy Sports and Outdoors, the Katy, Texas-based retailer, has revised its full-year sales forecast downwards due to a decrease in consumer spending ahead of the holiday season. The company now expects sales to range between $6.11 billion and $6.17 billion for the year, down from its previous forecast of $6.18 billion to $6.37 billion.
The revised outlook reflects a more cautious approach as Academy Sports and Outdoors anticipates a decline in comparable sales by 6.5% to 7.5% for the year. This adjustment comes after earlier guidance for a decline of 4.5% to 7.5%. The company is also revising its full-year adjusted profit outlook to a range of $7.05 to $7.20 per share, compared to the previous forecast range of $6.95 to $7.65 per share.
Chief Executive Steve Lawrence acknowledged the shift in customer behavior over the past year, with consumers consolidating their shopping trips into key moments on the calendar. Academy Sports and Outdoors plans to focus on promoting its value offerings in marketing materials to address this changing trend.
In the third quarter, the company experienced a comparable sales decline of 8%, falling short of analysts’ expectations of a 5.9% decrease, according to FactSet.