Here's Why Academy Sports Stock Jumped Higher on Thursday
Shares of athletic retailer Academy Sports and Outdoors (NASDAQ: ASO) jumped higher on Thursday, ironically after the company reported that its business slowed down during its fiscal second quarter, which ended in July. The company's net sales were down 6.2% year over year, leading to a 17% drop in net income.
However, investors seem willing to forgive the slowdown because it's happening with companies across the sector -- this isn't unique to Academy Sports. Moreover, in certain metrics, the company's results and guidance were stronger than some of its competitors. And that's why the stock was up a hearty 15% as of 10:30 a.m. ET on Thursday.
Second-quarter net income of $157 million was down year over year, but analysts actually expected worse from Academy Sports. These low expectations could be related to its larger rival Dick's Sporting Goods, whose gross profit margin has fallen due to higher theft in its stores. However, Academy Sports' gross margin improved in the second quarter to 35.6% compared to a gross margin of 35.3% in the prior-year quarter.
Source Fool.com
