Revisiting Academy Sports and Outdoors ($ASO): the Thesis Remains Intact

• Despite 1Q23 disappointing results, ASO is doing everything right to thrive in the long run: ramping up its store growth, deploying a meaningful capital allocation, working on operational efficiencies, increasing e-commerce and private brands penetration…

• The Company is outperforming its peers and presents structural characteristics that confer with a resilient business model in case of a downturn.

• There are some negative aspects that deserve to be highlighted (CEO transition, potential margins compression and consumer discretionary nature) but not enough to derail ASO’s outperformance.

• Within my base case scenario the upside might be 140%+ within a five years horizon, but if ASO were able to achieve the ambitious goals stated in its last Investors Day, they could multiply by many times.

Revisiting Academy Sports and Outdoors

A year ago I wrote an article about Academy Sports and Outdoors (ASO) where I detailed why I liked this company so much. At that time the company was trading at $38 a…