Academy Sports and Outdoors (NASDAQ: ASO) reported second-quarter fiscal 2026 earnings on September 9, 2026, with adjusted earnings per share (EPS) of $2.31—beating Wall Street’s estimate of $2.09 by 10.5%—and a 19.1% year-over-year increase. GAAP EPS came in at $2.17, up 17.3% from the prior year. Revenue of $1.65 billion was slightly below the $1.66 billion consensus, though net sales reached $1.6 billion, reflecting a 3.0% year-over-year growth. Comparable sales declined by 0.4%, contrasting with strong performance across higher-income households, where traffic rose in the high-single-digit range. The company’s gross margin expanded by 440 basis points to 40.4%, a result of $83.7 million in tariff refunds that added 510 bps to margins after reinvestments in pricing strategies offset $10.9 million. This net benefit contributed $0.06 per share to earnings. The stock surged 7.6% premarket to $48.08, trading at a forward P/E of approximately 8.6 based on fiscal 2026 guidance. The 52-week range spans $41.29 to $62.45.
The company’s long-term growth strategy remains robust, with 63 new stores opened since fiscal 2022 generating $1.1 billion in sales. Planned expansions aim to add 125 more stores, targeting $1.9 billion in annual sales. Capital expenditures for fiscal 2026 are projected between $200 million and $240 million, while full-year guidance for net sales ranges from $6.23 billion to $6.36 billion, implying 3% to 5% growth. Adjusted EPS guidance was raised to $6.50 to $6.90, reflecting a midpoint growth of 15.9% from fiscal 2025. Gross margin guidance lifted to 35.5% to 36.0%, up 70 to 120 bps from the prior year’s 34.8%.
Academy’s brand portfolio includes national brands at 78% and private/exclusive brands at 22%, with a loyalty program offering 5% back on Academy purchases for credit card holders and 2% for co-branded users. The company has returned approximately $1.8 billion to shareholders since its IPO in October 2020, including $1.7 billion in share repurchases and $0.1 billion in dividends. Total shareholder returns as of January 31, 2026, stood at 320%.
CEO Steve Lawrence highlighted the company’s assortment diversity as a competitive advantage, while CFO Carl Ford noted that tariff refunds, now substantially realized, will not impact earnings further this year. The company aims to expand to 450+ stores, achieve a 7% net income margin, and raise e-commerce penetration to 15%+ from around 12%, with long-range sales targets of $8 billion. Store expansion efforts include opening 22 to 24 stores in fiscal 2026, with an estimated $2.5 million to $3.5 million invested per new location.
