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Posted by
Two Blokes June 14, 2025 -
Filed in
Stock
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4 views
I rate ASO a buy due to gross margin expansion, store growth, adoption by higher-earners, supporting free cash flow growth, and maintaining capital returns through repurchases. ASO's valuation is attractive at 11.4x TTM P/FCF, with reported cash flow depressed by growth investments and strategic inventory build, making shares look cheap. Brand expansion, especially the Jordan launch, and increasing penetration among $100k+ earners, position ASO for comp sales improvement and new store success when the macrocycle turns.
