Academy Sports & Outdoors, Inc. (ASO) saw its stock surge 5% in Wednesday's intraday trading session, following the release of its mixed third-quarter 2024 financial results. Despite a decline in comparable sales and gross margin pressure, the company's overall revenue performance and recent strategic initiatives, including a new $700 million share buyback program, fueled investor optimism.

The sporting goods retailer reported third-quarter revenue of $1.34 billion, slightly exceeding expectations. However, comparable sales declined by 4.9%, impacted by unseasonably warm weather and the absence of a major sporting event like the previous year's Texas Rangers World Series run. Gross margin also contracted by 50 basis points to 34%, driven by higher supply chain costs and a shift towards outdoor merchandise.

Despite the challenges, Academy Sports & Outdoors provided encouraging updates on its holiday season performance and growth strategies. The company highlighted strong Black Friday and Cyber Week sales, with Black Friday being the largest selling day in its history. Additionally, the company plans to capitalize on growth opportunities through an expanding store footprint, with 16 new locations opened in 2024, taking the total to 298 stores. Strategic initiatives, such as enhancing e-commerce capabilities and leveraging customer data platforms, are expected to drive market share gains in the coming years.