Academy Sports and Outdoors has filed for an Initial Public Offering. In the filing document the company states that it plans to raise $100 million. However, this is just a placeholder. Renaissance Capital estimates that the company could raise up to $500 million.
Academy has its head office in Katy, TX. It was formed in San Antonio in 1938 when founder Max Gochman opened a tire store. The following year he started selling military surplus. The corporate office moved to Houston in 1978 and the company started selling sports and outdoor equipment in 1980. In 2011, the business was acquired by KKR, one of the largest PE firms.
The company now has 259 stores across 16 states. For the 12 months ending 1 August 2020, the business had revenues of $5.3 million. Adjusted EBITDA was $449 million. This number is before $17.6 million of costs related to the COVID-19 pandemic (primarily temporary wage premiums, cleaning supplies and accelerated freight costs).
For the 26 weeks ending Aug 2020, comparable sales are up 15.9% on the same period last year. Sales in the sports and recreation merchandise divisions are up 23%, while footwear and apparel are down 7% and 3% respectively. The company believes that the popularity of isolated recreation, outdoor and leisure activities has increased during the pandemic. Sales of firearms are also up.
The company has achieved four consecutive quarters with positive comparable sales.
Ken Hicks is the Chairman and CEO. He joined the company in May 2018 and was previously the CEO at Foot Locker. Michael Mullican has served as the CFO since January 2018. He joined Academy in February 2017 as its General Counsel. Prior to that, he was the Managing Director of Aureus Health Services, a specialty pharmacy.
No pricing terms were disclosed.