Academy Sports + Outdoors reported second-quarter fiscal 2026 net sales of $1.647 billion, up 3% year over year, while diluted GAAP EPS increased 17.3% to $2.17 and adjusted EPS increased 19.1% to $2.31.
Comparable sales declined 0.4%, although e-commerce sales increased 12.8% and the company’s newer stores generated positive comparable sales in the mid-single-digit range.
Net income increased 10% to $137.9 million, while adjusted net income increased 11.6% to $146.5 million. Income before income taxes increased 8.3% to $178.4 million.
Academy’s quarterly gross margin increased to 40.4% from 36%, while operating income increased to $246.4 million from $172.4 million.
For the first 26 weeks of fiscal 2026, sales increased 4.7% to $3.09 billion and comparable sales increased 1.1%. Net income rose 11.1% to $190.6 million, while adjusted EPS increased 19% to $3.20.
Academy generated $237.6 million of adjusted free cash flow during the first half, compared with $128.1 million in the prior-year period. The company also repurchased $182.1 million of shares, an 82.3% increase, and paid $19 million in dividends.
The retailer opened three stores during the second quarter, bringing its footprint to 327 locations. Academy plans to open another 11 stores during the third quarter, with additional locations scheduled for the fourth quarter.
Academy maintained its fiscal 2026 sales forecast of $6.23 billion to $6.355 billion, representing growth of 3% to 5%, and continued to expect comparable sales ranging from flat to 2% growth.
However, the company raised expected gross margin to 35.5% to 36%, from 34.5% to 35%, and increased diluted GAAP EPS guidance to $6.05 to $6.45, from $5.95 to $6.35.
Adjusted EPS guidance increased to $6.50 to $6.90, compared with $6.40 to $6.80 previously.
Academy also raised adjusted free cash flow guidance to $300 million to $350 million, compared with $250 million to $300 million previously.
KEY QUOTES:
“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,” said Steve Lawrence, Chief Executive Officer. “We are reinvesting tariff-related benefits into value, expanding compelling new brands and categories, and accelerating initiatives across stores, omni-channel and loyalty. These actions are helping us gain market share, strengthen customer engagement and reinforce our confidence in achieving our fiscal 2026 sales and earnings objectives.”
Steve Lawrence, Chief Executive Officer of Academy Sports + Outdoors
“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. Importantly, we accomplished this while investing in strategic growth initiatives designed to support sustainable long-term growth,” said Carl Ford, Executive Vice President and Chief Financial Officer. “As we enter the second half of the year, our balance sheet remains strong, our growth drivers are performing well and we are well positioned to deliver within our fiscal 2026 outlook.”
Carl Ford, Executive Vice President and Chief Financial Officer of Academy Sports + Outdoors
