What Happened?
Shares of sporting goods retailer Academy Sports & Outdoor (NASDAQ: ASO) jumped 3.1% in the morning session after a key competitor, Amer Sports, boosted its financial forecast for the third quarter of 2025.
The positive news from Amer Sports appeared to lift sentiment across the sporting goods sector. During its investor day, Amer Sports announced it expected its third-quarter revenue to grow in the high 20s percentage range, a significant jump from its previous forecast of around 20% growth. The company also signaled stronger profitability, predicting its adjusted operating margin would meet or beat the high end of its prior 12-13% guidance. When a major player like Amer Sports sees robust demand, investors often bet that the favorable market conditions will benefit peers like Academy Sports as well, fueling optimism for the industry's health.
After the initial pop the shares cooled down to $48.17, up 3.4% from previous close.
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What Is The Market Telling Us
Academy Sports’s shares are quite volatile and have had 18 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 9 days ago when the stock dropped 3.4% as the stock extended its negative momentum as the company reported second-quarter results that missed Wall Street's expectations for both revenue and earnings.
The negative market reaction came despite management's comments on improving sales momentum compared to prior quarters. The company also cited particular strength in its e-commerce division and noted that same-store sales were stabilizing. However, investors focused on the top- and bottom-line miss, sending shares lower during Tuesday's trading.
Academy Sports is down 14.8% since the beginning of the year, and at $48.17 per share, it is trading 23.2% below its 52-week high of $62.75 from September 2024. Investors who bought $1,000 worth of Academy Sports’s shares at the IPO in October 2020 would now be looking at an investment worth $3,707.
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