Academy Sports and Outdoors Inc
Q2 2027 Earnings
Includes $0.06 net EPS benefit from IEEPA tariff refunds (after reinvestments) and a $1.9 million loss on early retirement of debt; equity compensation add-back of $9.3 million (pre-tax) in the adjusted figure
Market Reaction
Did ASO Beat Earnings? Q2 2027 Results
Academy Sports & Outdoors posted a stronger-than-expected second quarter for fiscal 2026, with adjusted diluted EPS of $2.31 beating the $2.08 consensus estimate by 10.82%, even as net sales of $1.65 billion came in fractionally below expectations, missing by 0.30% despite rising 3.0% year over year. The standout driver behind the earnings beat was a significant gross margin expansion of 440 basis points to 40.4% of sales, amplified by a net $5.30 million benefit from IEEPA tariff refunds that contributed roughly $0.06 to adjusted EPS after the company reinvested a portion into strategic pricing and customer experience initiatives. Three new store openings and a 12.8% surge in eCommerce sales helped offset a modest 0.40% comparable sales decline, while disciplined cost management kept operating income robust at $246.36 million. With UBS and other analysts flagging softness in discretionary spending as a near-term headwind, Academy's decision to raise its adjusted EPS guidance to $6.50 to $6.90 for fiscal 2026 signals management's confidence that its value-focused strategy and store expansion plan can sustain momentum through year-end.
- Gross margin expansion of 440 bps to 40.4%, driven by IEEPA tariff refund recognition
- eCommerce sales increase of 12.8%
- New stores comping positive mid-single digits
- 3 new store openings bringing total to 327 locations
- Inventory per store down 5.6% in units and 2.3% in dollars
- Share count reduction from aggressive buyback program
“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.”
Academy Sports & Outdoors CEO, on the earnings call
Forward Guidance & Outlook
Academy affirmed its fiscal 2026 (year ending January 30, 2027) net sales guidance of $6.230B to $6.355B (sales growth of 3.0% to 5.0%) and comparable sales of flat to +2.0%. The company raised its adjusted EPS guidance to $6.50–$6.90 from the prior $6.40–$6.80 range. GAAP EPS guidance is $6.05–$6.45. Gross margin rate is expected at 35.5%–36.0%. Adjusted net income is guided at $420M–$445M, capital expenditures at $200M–$240M, and adjusted free cash flow at $300M–$350M. The outlook assumes a tax rate of approximately 22.0% and does not include potential future share repurchases. The company plans to open eleven stores during Q3 with remaining stores in Q4.
ASO YoY Financials
Figures from SEC filings and company reports. Not investment advice.