Academy Sports + Outdoors — Second Quarter Fiscal 2026 Earnings Summary

Financial Performance

• Net sales for the second quarter ended August 1, 2026, were $1,647.3 million, a 3.0% increase from $1,599.8 million in the prior year period.
• Year-to-date net sales for the twenty-six weeks ended August 1, 2026, were $3,089.3 million, a 4.7% increase from $2,951.2 million in the prior year period.
• Comparable sales decreased 0.4% in the second quarter, compared to an increase of 0.2% in the prior year; year-to-date comparable sales increased 1.1% compared to a decrease of 1.7% in the prior year.
• eCommerce sales increased 12.8% in the second quarter.
• Diluted GAAP earnings per share (EPS) were $2.17 for the quarter, up 17.3% from $1.85; year-to-date diluted GAAP EPS were $2.94, up 16.7% from $2.52.
• Adjusted diluted EPS were $2.31 for the quarter, up 19.1% from $1.94; year-to-date adjusted diluted EPS were $3.20, up 19.0% from $2.69.
• Net income was $137.9 million for the quarter (up 10.0%) and $190.6 million year-to-date (up 11.1%).
• Adjusted net income was $146.5 million for the quarter (up 11.6%) and $207.7 million year-to-date (up 13.6%).
• Gross margin rate was 40.4% for the quarter and 37.1% year-to-date.
• Operating income was $246.4 million for the quarter (15.0% of sales) and $321.0 million year-to-date (10.4% of sales).
• Cash and cash equivalents were $298.2 million as of August 1, 2026.
• Merchandise inventories, net, were $1,657.4 million as of August 1, 2026 (up 4.4% from $1,587.6 million in the prior year); inventory per store was down 5.6% in units and 2.3% in dollars.
• Long-term debt, net, was $494.2 million as of August 1, 2026 (up 2.6% from $481.7 million in the prior year).
• Net cash provided by operating activities was $349.0 million for the twenty-six weeks ended August 1, 2026, compared to $236.0 million in the prior year.
• Adjusted free cash flow was $237.6 million for the twenty-six weeks ended August 1, 2026, compared to $128.1 million in the prior year.

Guidance and Future Outlook

• Academy affirmed its fiscal 2026 sales guidance of $6,230 million to $6,355 million (midpoint up 4.0% vs. 2025 actuals).
• Sales growth guidance remains 3.0% to 5.0%.
• Comparable sales guidance remains 0% to 2.0%.
• Gross margin rate guidance was raised to 35.5% to 36.0% (previously 34.5% to 35.0%).
• GAAP net income guidance remains $390 million to $415 million.
• Adjusted net income guidance remains $420 million to $445 million.
• GAAP diluted EPS guidance was raised to $6.05 to $6.45 (previously $5.95 to $6.35).
• Adjusted diluted EPS guidance was raised to $6.50 to $6.90 (previously $6.40 to $6.80).
• Capital expenditures guidance remains $200 million to $240 million.
• Adjusted free cash flow guidance was raised to $300 million to $350 million (previously $250 million to $300 million).
• Diluted weighted average common shares guidance remains 64.5 million.
• The updated guidance assumes a tax rate of approximately 22.0% and does not include potential future share repurchases.

Business Segments and Product Lines

• The company opened three new stores during the second quarter in Pennsylvania and Tennessee, bringing the total store count to 327 locations.
• The company plans to open eleven stores during the third quarter, with remaining locations to open in the fourth quarter of fiscal 2026.
• Total gross square feet increased to 22,191,000 at the end of the second quarter.
• Management noted reinvestment of tariff-related benefits into value, expansion of compelling new brands and categories, and acceleration of initiatives across stores, omni-channel, and loyalty.

Market and Competitive Landscape

• Consumer spending remains pressured, particularly among lower-income households.
• The company is gaining market share and strengthening customer engagement through its execution on key events and categories.
• The competitive environment is a factor considered in the updated guidance.

Risks and Challenges

• Risks include macroeconomic challenges, inflation, higher interest rates, trade policy changes, additional tariffs, geopolitical tensions, and changes to the financial health of customers.
• Actual results may differ materially from expectations due to these factors.

Management Commentary and Tone

• CEO Steve Lawrence stated the company delivered "another quarter of profitable growth" and executed at a high level despite consumer spending pressures.
• CFO Carl Ford noted the results demonstrate the strength of the business and the discipline of the operating model, citing double-digit EPS growth and strong free cash flow.
• Management expressed confidence in achieving fiscal 2026 sales and earnings objectives.

Other Key Points

• The Board of Directors declared a quarterly cash dividend of $0.15 per share for the quarter ended August 1, 2026, payable on October 14, 2026, to stockholders of record as of September 16, 2026.
• Share repurchases totaled $182.1 million for the twenty-six weeks ended August 1, 2026, compared to $99.9 million in the prior year.
• Dividends paid were $19.0 million for the twenty-six weeks ended August 1, 2026, compared to $17.4 million in the prior year.
• The company recognized a loss on tariff refund monetization of $61.8 million for the twenty-six weeks ended August 1, 2026.
• A net tariff refund impact of $0.06 per share was included in the second quarter diluted GAAP EPS.
• The company refinanced debt, including proceeds from Senior Notes of $500 million and repayment of Senior Notes of $400 million, resulting in debt refinancing fees of $9.4 million.
• Remittance of tariff refund claims totaled $72.2 million for the twenty-six weeks ended August 1, 2026.