Academy Sports & Outdoors, Inc. (ASO): Results of Operations and Financial Condition
Academy Sports & Outdoors, Inc. (ASO) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Academy Sports + Outdoors Reports Second Quarter Fiscal 2026 Results Second Quarter Sales Growth of 3.0%; Comparable Sales of (0.4)% eCommerce Sales Increase of 12.8% New Stores Comp Positive Mid Single Digits Second Quarter Diluted GAAP EPS of $2.17; up 17.3%; Adjus
How this was made
The 30-second read
Why it matters
The company delivered double‑digit EPS growth, modest sales expansion, and raised its full‑year EPS outlook, indicating resilience in a pressured consumer environment.
Market read
The earnings beat and guidance raise are likely to drive short‑term buying interest in ASO and may influence sentiment toward the consumer discretionary sector.
What to watch
Higher inventory levels and modest comparable sales decline could pressure margins if consumer demand weakens.
Second-quarter net sales increased 3.0% to $1,647.3 million, diluted GAAP EPS rose 17.3% to $2.17, and adjusted diluted EPS increased 19.1% to $2.31.
Net sales and earnings increased, gross margin expanded to 40.4%, eCommerce sales increased 12.8%, and fiscal 2026 sales guidance was affirmed while diluted EPS and adjusted free cash flow guidance were raised. Comparable sales were (0.4)% and management cited pressure on consumer spending, particularly among lower-income households.
Actuals vs. the company’s prior outlook
from its previous release| Metric | Guided | Reported | Verdict |
|---|---|---|---|
| Fiscal 2026 net sales | $6,230 to $6,355 | $ 1,647.3 | n/a |
| Fiscal 2026 comparable sales | — % to 2.0 % | (0.4) % | n/a |
| Fiscal 2026 gross margin rate | 34.5 % to 35.0 % | 40.4 % | n/a |
| Fiscal 2026 GAAP net income | $390 to $415 | $ 137.9 | n/a |
| Fiscal 2026 adjusted net income | $420 to $445 | $ 146.5 | n/a |
| Fiscal 2026 GAAP earnings per common share, diluted | $5.95 to $6.35 | $ 2.17 | n/a |
| Fiscal 2026 adjusted earnings per common share, diluted | $6.40 to $6.80 | $ 2.31 | n/a |
| Fiscal 2026 diluted weighted average common shares | 66 | 63,551 | n/a |
| Fiscal 2026 capital expenditures | $200 to $240 | $ 111,258 | n/a |
| Fiscal 2026 adjusted free cash flow | $250 to $300 | $ 115,949 | n/a |
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $ 1,647.3 | – | 3.0% |
| Comparable salesother | (0.4) % | – | – |
| eCommerce sales increaseother | 12.8% | – | – |
| Income before income taxGAAP | $ 178.4 | – | 8.3% |
| Gross marginGAAP | $ 665,902 | – | – |
| Gross margin percentage of salesGAAP | 40.4 % | – | – |
| Cost of goods soldGAAP | $ 981,383 | – | – |
| Selling, general and administrative expensesGAAP | $ 419,539 | – | – |
| Selling, general and administrative expenses percentage of salesGAAP | 25.5 % | – | – |
| Operating incomeGAAP | $ 246,363 | – | – |
| Operating income percentage of salesGAAP | 15.0 % | – | – |
| Net incomeGAAP | $ 137.9 | – | 10.0% |
| Net income percentage of salesGAAP | 8.4 % | – | – |
| Adjusted net incomenon-GAAP | $ 146.5 | – | 11.6% |
| Diluted earnings per common shareGAAP | $ 2.17 | – | 17.3% |
| Adjusted diluted earnings per common sharenon-GAAP | $ 2.31 | – | 19.1% |
| Adjusted EBITnon-GAAP | $ 197,676 | – | – |
| Net sales, twenty-six weeksGAAP | $ 3,089.3 | – | 4.7% |
| Comparable sales, twenty-six weeksother | 1.1 % | – | – |
| Operating income, twenty-six weeksGAAP | $ 321,018 | – | – |
| Net income, twenty-six weeksGAAP | $ 190.6 | – | 11.1% |
| Adjusted net income, twenty-six weeksnon-GAAP | $ 207.7 | – | 13.6% |
| Diluted earnings per common share, twenty-six weeksGAAP | $ 2.94 | – | 16.7% |
| Adjusted diluted earnings per common share, twenty-six weeksnon-GAAP | $ 3.20 | – | 19.0% |
| Net cash provided by operating activities, twenty-six weeksGAAP | $ 349,022 | – | – |
| Adjusted Free Cash Flow, twenty-six weeksnon-GAAP | $ 237,558 | – | – |
| Adjusted Free Cash Flownon-GAAP | $ 115,949 | – | – |
Fiscal 2026 (year ending January 30, 2027) outlook
- Revenue$6,230 to $6,355
- Gross margin35.5 % to 36.0 %
- Tax rateapproximately 22.0%
- NoteSales Growth: 3.0 % to 5.0 %
- NoteComparable sales: — % to 2.0 %
- NoteGAAP net income: $390 to $415
- NoteAdjusted net income: $420 to $445
- NoteGAAP earnings per common share, diluted: $6.05 to $6.45
- NoteAdjusted earnings per common share, diluted: $6.50 to $6.90
- NoteDiluted weighted average common shares: 64.5
- NoteCapital Expenditures: $200 to $240
- NoteAdjusted free cash flow: $300 to $350
Capital returns
- Share repurchases: $ 182.1 for the twenty-six weeks ended August 1, 2026, including excise tax fees of $1.6 million.
- Dividends paid: $ 19.0 for the twenty-six weeks ended August 1, 2026.
- The Board of Directors declared a quarterly cash dividend of $0.15 per share of common stock on September 2, 2026.
- The dividend is payable on October 14, 2026 to stockholders of record as of the close of business on September 16, 2026.
What drove it
- Net sales increased 3.0%.
- eCommerce sales increased 12.8%.
- New stores comped positive mid single digits.
- Academy opened three new stores during the second quarter, bringing its total to 327 locations.
- Management cited reinvestment of tariff-related benefits into value, expansion of new brands and categories, and initiatives across stores, omni-channel and loyalty.
- Gross margin was 40.4 % of sales, compared with 36.0 % in the prior-year quarter.
Concerns
- Comparable sales were (0.4) % in the second quarter.
- Management said consumer spending remains pressured, particularly among lower-income households.
- Other expense (income), net was $ 58,006, compared with $ (1,480) in the prior-year quarter.
- The cash flow statement includes a loss on tariff refund monetization of $ 61,759 and remittance of tariff refund claims of $ 72,224.
What to watch
- Execution against fiscal 2026 comparable-sales guidance of — % to 2.0 %.
- Delivery of fiscal 2026 gross margin rate guidance of 35.5 % to 36.0 %.
- The planned opening of eleven stores during the third quarter, with remaining locations to be opened in the fourth quarter of fiscal 2026.
- Realization of fiscal 2026 adjusted free cash flow guidance of $300 to $350.
- Consumer demand and the competitive environment, inflation and other economic risks, and potential impacts from tariffs.
Balance sheet and cash flow
- Cash and cash equivalents: $ 298.2 as of August 1, 2026, versus $ 300.9 as of August 2, 2025.
- Merchandise inventories, net: $ 1,657.4 as of August 1, 2026, versus $ 1,587.6 as of August 2, 2025.
- Inventory per store was down 5.6% in units and down 2.3% in dollars as of August 1, 2026.
- Long-term debt, net: $ 494.2 as of August 1, 2026, versus $ 481.7 as of August 2, 2025.
- Net cash provided by operating activities: $ 349,022 for the twenty-six weeks ended August 1, 2026, versus $ 236,047 for the twenty-six weeks ended August 2, 2025.
- Capital expenditures: $ 111,258 for the twenty-six weeks ended August 1, 2026, versus $ 107,576 for the twenty-six weeks ended August 2, 2025.
- Net cash used in investing activities: $ 111,464 for the twenty-six weeks ended August 1, 2026, versus $ 107,899 for the twenty-six weeks ended August 2, 2025.
- Net cash used in financing activities: $ 269,665 for the twenty-six weeks ended August 1, 2026, versus $ 116,217 for the twenty-six weeks ended August 2, 2025.
Analysis
Academy reported second-quarter net sales of $ 1,647.3, up 3.0%, while comparable sales were (0.4) %. The release identifies eCommerce sales growth of 12.8% and positive mid-single-digit comps at new stores. Three new stores opened in the quarter, lifting the store count to 327. Management nonetheless said consumer spending remained pressured, particularly among lower-income households.
Profitability improved substantially. Gross margin was $ 665,902, or 40.4 % of sales, versus $ 576,733, or 36.0 %, in the prior-year quarter. Operating income was $ 246,363, or 15.0 % of sales, compared with $ 172,381, or 10.8 %. GAAP net income was $ 137.9, up 10.0%, and diluted GAAP EPS was $2.17, up 17.3%. Adjusted net income was $ 146.5 and adjusted diluted EPS was $2.31.
For the twenty-six weeks, net sales were $ 3,089.3, up 4.7%, and comparable sales were 1.1 %. Operating income was $ 321,018, compared with $ 241,646, while GAAP net income was $ 190.6 and adjusted net income was $ 207.7. The filing also reports other expense (income), net of $ 58,006 in the second quarter and a loss on tariff refund monetization of $ 61,759 for the twenty-six weeks.
Cash generation and capital allocation were notable. Net cash provided by operating activities was $ 349,022 for the twenty-six weeks, and adjusted free cash flow was $ 237,558. Academy repurchased $ 182.1 of shares and paid $ 19.0 in dividends over that period. Cash and cash equivalents were $ 298.2, while long-term debt, net was $ 494.2. Inventory per store was down 5.6% in units and down 2.3% in dollars.
The company affirmed fiscal 2026 net-sales guidance of $6,230 to $6,355 and comparable-sales guidance of — % to 2.0 %. It raised gross-margin-rate guidance to 35.5 % to 36.0 % from 34.5 % to 35.0 %, GAAP diluted EPS guidance to $6.05 to $6.45 from $5.95 to $6.35, adjusted diluted EPS guidance to $6.50 to $6.90 from $6.40 to $6.80, and adjusted free-cash-flow guidance to $300 to $350 from $250 to $300. Capital-expenditure guidance remained $200 to $240, and the company plans to open eleven stores in the third quarter, with remaining fiscal 2026 locations slated for the fourth quarter.
Management, verbatim
We delivered another quarter of profitable growth, with net sales increasing 3.0%. While consumer spending remains pressured, particularly among lower-income households, our team has continued to execute at a high level by focusing on the key events and categories that matter most to our customers.
Steve Lawrence, Chief Executive Officer
Our second quarter results demonstrate the strength of the business and the discipline of our operating model. We delivered double digit EPS growth, produced strong free cash flow and continued returning capital to shareholders through both share repurchases and dividends.
Carl Ford, Executive Vice President and Chief Financial Officer
Not in the filing
stated, not guessed- Reportable revenue segments and segment-level revenue were not provided.
- Prior-quarter comparisons were not provided for reported operating metrics.
- A reported second-quarter GAAP free cash flow measure was not provided.
- A reported second-quarter effective tax rate was not provided.
- Fiscal 2026 operating-expense guidance was not provided.
- Direct comparison of second-quarter actual results with full-year prior guidance is not period-comparable; all versus-prior-guidance verdicts are n/a.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Academy Sports & Outdoors (NASDAQ: ASO) filed an 8‑K reporting Q2 FY2026 results and updated FY2026 guidance.
Ticker impact
Academy Sports & Outdoors reported Q2 FY2026 results and raised FY2026 guidance, including higher EPS and net sales forecasts.
Potential short‑term price appreciation of 3‑5% on the back of stronger earnings and raised guidance.
GAAP EPS rose 17% YoY to $2.17 and adjusted EPS 19% YoY to $2.31; guidance now targets $6.40‑$6.80 EPS versus prior $5.95‑$6.35, indicating improved profitability.
Market effects
Strong results may lift the broader specialty retail sector and peers such as Dick's Sporting Goods.
Positive for U.S. consumer discretionary stocks amid mixed consumer spending data.
Limited to U.S. markets; no direct global macro impact.
Counterpoint
If the earnings beat is already priced in, the stock could face a pull‑back on profit‑taking.
Key entities
- ExecutiveSteve Lawrence
Chief Executive Officer of Academy Sports & Outdoors.
- ExecutiveCarl Ford
Executive Vice President and CFO, provided commentary on financial results.