Academy Sports & Outdoors, Inc.ASO

Academy Sports & Outdoors, Inc. Earnings Per Share Disclosure

10-KFiled Mar 20, 20252 min read
Earnings per Common Share
Basic earnings per common share is calculated based on net income divided by the basic weighted average common shares outstanding during the period, and diluted earnings per common share is calculated based on net income divided by the diluted weighted average common shares outstanding. Diluted weighted average common shares outstanding is based on the basic weighted average common shares outstanding plus any potential dilutive effect of stock-based awards outstanding during the period using the treasury stock method, which assumes the potential proceeds received from the dilutive stock options are used to purchase treasury stock. Anti-dilutive stock-based awards do not include awards which have a performance or liquidity event target which has yet to be achieved.
Basic and dilutive weighted average common shares outstanding and basic and diluted earnings per common share are calculated as follows (amounts in thousands except per share amounts):
Fiscal Year Ended
February 1, 2025February 3, 2024January 28, 2023
Net income$418,447 $519,190 $628,001 
Weighted average common shares outstanding - basic71,343 75,389 81,590 
Dilutive effect of Service Restricted Units and Service Restricted Stock Units316 327 165
Dilutive effect of Performance Restricted Stock Units and Liquidity Event Restricted Units85 165 207 
Dilutive effect of Service Options1,153 1,439 1,678 
Dilutive effect of Performance Unit Options86 112 202 
     Dilutive effect of ESPP Shares65 37 53 
Weighted average common shares outstanding - diluted73,048 77,469 83,895 
Earnings per common share - basic$5.87 $6.89 $7.70 
Earnings per common share - diluted$5.73 $6.70 $7.49 
Anti-dilutive stock-based awards excluded from diluted calculation126 128 24 

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

Income TaxesRevenueFair ValuePP&ELeasesSegmentsDebtCommitmentsStock CompensationNew StandardsPay vs Performance