Earnings Beat Estimates
Academy Sports Raises Fiscal Year Guidance After Second-Quarter Profit And Sales Increase
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Key Points
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The quarter ended August 1, 2026, and adjusted earnings of $2.31 per share exceeded the FactSet analyst consensus of $2.07; comparable sales declined less than the 0.2% decrease analysts had expected.
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For the first 26 weeks of fiscal 2026, Academy reported net sales of $3.09 billion, up 4.7% year over year, and net income of $190.6 million.
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The three new stores opened during the quarter were located in Pennsylvania and Tennessee, bringing Academy’s store count to 327.
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Academy said inventory per store was down both in units and in dollar value as of August 1, 2026, an indication that merchandise levels were being managed despite the company’s sales growth.
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CEO Steve Lawrence said the company is using tariff-related benefits to expand new brands and categories and accelerate initiatives across stores, omnichannel operations and loyalty, rather than simply retaining those benefits as profit.
Academy Sports and Outdoors beat profit expectations in the second quarter and raised its full-year earnings forecast, sending shares up as much as 11%. The retailer reported adjusted earnings of $2.31 per share, topping analyst estimates of $2.07, while total sales climbed 3% to $1.65 billion Yahoo Finance.
The company raised its fiscal 2026 earnings guidance to $6.05–$6.45 per share, up from prior expectations. CEO Steve Lawrence said Academy is reinvesting tariff-related savings into new brands, stores, and digital operations instead of pocketing the gains, as consumer spending remains weak among lower-income shoppers GuruFocus.
How Academy Beat Wall Street's Profit Forecast
Academy's adjusted earnings of $2.31 per share exceeded the FactSet consensus of $2.07, a solid outperformance. Net income rose to $137.9 million from $125.4 million in the year-ago quarter WWD. Comparable sales, a key retail metric measuring same-store performance, declined just 0.4%—better than the 0.2% drop analysts had expected.
The quarter's strength came despite overall retail pressure. Sales grew 3% to $1.65 billion, while e-commerce sales jumped 12.8%, showing consumers are shifting online. Academy's inventory per store fell in both units and dollar value, proving the company can grow sales without bloating stockrooms Yahoo Finance.
Academy Lifts Full-Year Profit Outlook
Academy raised its adjusted earnings guidance for fiscal 2026 to $6.50–$6.90 per share, up from prior levels. The company also boosted its GAAP earnings outlook to $6.05–$6.45 per share Yahoo Finance. These hikes signal management confidence in sustaining momentum through year-end despite softer consumer spending.
The retailer kept its full-year sales forecast flat at $6.23–$6.36 billion and predicted comparable sales growth of zero to 2%. Academy opened three new stores during Q2—all in Pennsylvania and Tennessee—bringing its total store count to 327. The company also approved a quarterly dividend of $0.15 per share WWD.
Tariff Savings Fund Expansion, Not Buybacks
Academy benefited from tariff refunds under the IEEPA, but CEO Lawrence said the company is spending those gains, not hoarding them. The retailer is investing in expanding brand selection, new store locations, digital capabilities, and loyalty programs to grab market share GuruFocus. This reinvestment strategy differs from simply recording higher profits.
Lawrence acknowledged that consumer spending is strained, particularly for lower-income households who make up a core Academy customer base. By targeting growth and market share rather than just profit margins, Academy is positioning itself for long-term strength even if economic headwinds persist Yahoo Finance.
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