Thread regarding Academy Sports & Outdoors layoffs

Academy Sports & Outdoors is looking at more layoffs due to decreasing performance

This was not a surprise, at least not to me. ASO is going to have more of these due to its decreasing performance. KKR has been carrying this company for a few years and that is going to stop in the next 18 to 24 months.

There is too much deadwood in the executive ranks such as IT, Inventory, Marketing and others. The fact the IT department had to have a custom consulting group put in place by JK to get the documentation of systems in one place shows that the IT exec's don't have their act together. Even with the documentation in place, in many cases that documentation was years old and far out of date which means it was useless but JK had smoke being blown up you know what, and told all is well... wink

Similar problems exist for retail store inventory management. For example, several store managers were clear that corporate did not provide inventory to the stores during the Super Bowl which could have made a significant difference in profits for the stores in the Houston, Tx area.

Bumped from @OrtfrYw-1pcwg for being on point.

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Post ID: @OP+PTo1A8w

6 replies (most recent on top)

This sounds like a disgruntled employee or ex-employee to me. My view (and I have no stake in ASO whatsoever) is that the company is top-heavy on management and that needs to change. In-house IT departments everywhere blow smoke up the boss's rear-end – they do that to hide the fact that they are incompetent. I've seen this over and over in the business world. All that said, ASO is much better than Walmart in many ways, not the least of which is their clothing selection. Tell me another sporting goods chain that is performing better than ASO. In Texas markets, ASO rules. Not D–k's, not Cabela's, not some smaller chain. When KKR sells Academy, expect it to be bought by a publicly traded company. Then we will know more about their financial situation.

Post ID: @d6jtv+PTo1A8w

From a store prospective, ASO is and was top heavy. Corporate office expansion was a sign of too much wage spent at the top. Cooperate staff was ballooning while stores were forced to cut back on floor coverage, training, merchandising, etc.

When new programs rolled out, there seemed to be one cooperate staff person for ever three store person in training. Questions from end users go unanswered. Very hard to appreciate all the effort and expense put into projects. Countless ambitious never realized projects and expectations.

Stores get overloaded with inventory that is not needed, while out of stock of what the customer is asking for. This spring, we are receiving product that was asked for last year. Product exist in the stores that has no place to be merchandised, just stored value in inventory merchandised somewhere else, where the customer will never find it.

Only now has ASO decided to invest in store efficiency. Great move!

The issues started under David then Rodney. JK is a scape goat.

Post ID: @2fegw+PTo1A8w

I walked into an ASO store near my home and saw no reason for its existence or why I would need to buy from the store. Right next to ASO is a Walmart and down the street is Target. They carry much better merchandise and a better shopping experience than ASO. It is not hard to see ASO's days are numbered. ASO provides no value or differentiation on anything it carries compared to its

Post ID: @2dhhh+PTo1A8w

I walked into an Academy store to browse and I could not see any big reason why someone needs to shop there as opposed to going to Walmart for many things. I wondered if the corporate regional district management teams have even thought to ask themselves why would a customer go to buy an Academy store when it does not give them a reason why. In fact, the Walmart near this Academy store looked better inside. At Walmart, the merchandise was stored neatly, the store was better kept and brighter inside. Academy did not have the feeling of a chain store that is growing but one that is declining. It had the same vibe as a Sears store.

Post ID: @aafh+PTo1A8w

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