Shares of Academy Sports & Outdoors Inc. rose in pre-market trading after the sports retailer posted a second quarter earnings report that gains in both profits and sales.
For the second quarter ended Aug. 1, net income was up 10 percent to $137.9 million, or $2.17 a diluted share, from $125.4 million, or $1.85, in the same year-ago quarter. On an adjusted basis, earnings per share (EPS) was $1.94. Net sales were up 3.0 percent to $1.65 billion from $1.6 billion. Comparable sales slipped 0.4 percent in the quarter.
Wall Street was expecting adjusted diluted EPS of $2.08 on net sales of $1.65 billion.
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For the six months, net income rose 11.1 percent to $190.6 million, or $2.94 a diluted share, from $171.5 million, or $2.52, in the prior year period. Net sales rose 4.7 percent to $3.09 billion from $2.95 billion. Comparable sales rose 1.1 percent.
“We delivered another quarter of profitable growth,” Academy’s chief executive Steve Lawrence said in a statement. “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.”
The company disclosed that it received a tariff refund that increased its EPS by 6 cents during the reporting period.
“We are reinvesting tariff-related benefits into value, expanding compelling new brands and categories, and accelerating initiatives across stores, omni-channel and loyalty,” Lawrence said. “These actions are helping us gain market share, strengthen customer engagement and reinforce our confidence in achieving our fiscal 2026 sales and earnings objectives.”
The outdoor retailer opened three new stores in the quarter, bringing the total store network to 327 doors. Academy plans to open 11 stores in the third quarter of fiscal 2026.
Given second-quarter results, Academy raised EPS guidance for fiscal 2026, now expecting a range of $6.05 to $6.45, up from prior forecasts of $5.95 to $6.35. The company did not change other projections. Net income is still expected in the range of $390 million to $415 million, on net sales between $6.23 billion and $6.36 billion.
Academy was expected to do better than its outdoor retail counterparts, such as Dick’s Sporting Goods and JD Sports. that’s primarily because it has less exposure to footwear than its sports retailer peers. And what Academy does sell in its footwear line is skewed toward performance, such as running and cleats.
Academy continues to change up how it showcases its assortment mix. This fall, the retailer will launch 200 Ariat in-store shops. Ariat has been a vendor partner to Academy for 20 years.
