Academy Sports & Outdoors, Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 9 September 2026: press release. Guidance figures: 3 raised, 1 lowered, 1 new, 2 kept. The quarter’s numbers.

Key takeaways

• Second quarter sales growth moderates to 3.0%: Net sales increased $47.5 million or 3.0% to $1,647.3 million in Q2, compared to 6.7% growth in Q1, as management noted consumer spending remains pressured, particularly among lower-income households. Source
• Comparable sales turned negative in quarter: Comparable store sales declined 0.4% in Q2, a reversal from the prior year gain of 0.2% and representing a deterioration from Q1's positive 2.9% comparable sales growth. Source
• Gross margin expanded 440 basis points: Gross margin rate was 40.4% in Q2 versus 36.0% in the prior year, an expansion of 440 basis points driven by tariff refunds and operational improvements in cost of goods sold. Source
• Diluted EPS grew 17.3% in quarter: Diluted GAAP EPS was $2.17 in Q2 versus $1.85 in prior year, an increase of $0.32 or 17.3%, while adjusted diluted EPS increased 19.1% to $2.31 from $1.94. Source
• Share repurchases accelerated 82% year-to-date: The company repurchased $182.1 million of common stock through 26 weeks, up 82.3% from $99.9 million in prior year, reducing diluted share count to 64.5 million from guidance of 66 million. Source
• Operating cash flow up 48% to $349 million: Operating cash flow for 26 weeks was $349.0 million, up 47.8% from $236.0 million in prior year, providing substantial capacity to fund capital investments and shareholder returns. Source
• Consumer spending pressured, lower-income households hurting: Management noted that while consumer spending remains pressured, particularly among lower-income households, the company executed at a high level by focusing on key events and categories most important to customers. Source

“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.”

Steve Lawrence, Chief Executive Officer

Guidance

What changed from last quarter

• Guidance raised: Gross margin rate guidance raised 100 basis points to 35.5%-36.0% from 34.5%-35.0%. Source
• Guidance raised: GAAP diluted EPS guidance raised $0.10 at midpoint to $6.05-$6.45 from $5.95-$6.35. Source
• Guidance kept: Net sales guidance affirmed at $6,230-$6,355 million for fiscal 2026. Source

Sales and Comparable Store Trends

• Second quarter sales growth moderates to 3.0%: Net sales increased $47.5 million or 3.0% to $1,647.3 million in Q2, compared to 6.7% growth in Q1, as management noted consumer spending remains pressured, particularly among lower-income households. Source
• Comparable sales turned negative in quarter: Comparable store sales declined 0.4% in Q2, a reversal from the prior year gain of 0.2% and representing a deterioration from Q1's positive 2.9% comparable sales growth. Source
• ECommerce growth slowed from 17.4% to 12.8%: eCommerce sales increased 12.8% in Q2, decelerating from the 17.4% growth recorded in Q1, as the company continues to shift toward digital channels. Source

Gross Margin and Operating Profitability

• Gross margin expanded 440 basis points: Gross margin rate was 40.4% in Q2 versus 36.0% in the prior year, an expansion of 440 basis points driven by tariff refunds and operational improvements in cost of goods sold. Source
• Operating income up 43% to $246 million: Operating income increased $74.0 million or 42.8% to $246.4 million in Q2 from $172.4 million in prior year, with operating margin expanding to 15.0% from 10.8%. Source
• Tariff refunds reinvested into value strategy: The company received tariff refunds of $0.06 per share in Q2, including benefits from International Emergency Economic Powers Act tariff refunds, and is reinvesting these into value, new brands and categories rather than flowing through earnings. Source
• Year-to-date gross margin at 37.1%: Gross margin rate for 26 weeks was 37.1% compared to 35.1% in prior year, a 200 basis point expansion reflecting consistent margin improvement throughout H1. Source

“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

Earnings Per Share and EPS Guidance

• Diluted EPS grew 17.3% in quarter: Diluted GAAP EPS was $2.17 in Q2 versus $1.85 in prior year, an increase of $0.32 or 17.3%, while adjusted diluted EPS increased 19.1% to $2.31 from $1.94. Source
• Year-to-date GAAP EPS at $2.94: Through 26 weeks, diluted GAAP EPS was $2.94 compared to $2.52 in prior year, up 16.7%, while adjusted EPS was $3.20 versus $2.69, up 19.0%. Source

Capital Allocation and Shareholder Returns

• Share repurchases accelerated 82% year-to-date: The company repurchased $182.1 million of common stock through 26 weeks, up 82.3% from $99.9 million in prior year, reducing diluted share count to 64.5 million from guidance of 66 million. Source
• Quarterly dividend declared at $0.15 per share: The Board declared a quarterly cash dividend of $0.15 per share on September 2, 2026, payable October 14, 2026 to shareholders of record September 16, 2026. Source
• Year-to-date dividends up 9.2% to $19 million: The company paid dividends of $19.0 million through 26 weeks, up 9.2% from $17.4 million in prior year, maintaining dividend growth while accelerating share repurchases. Source

“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.”

Carl Ford, Executive Vice President and Chief Financial Officer

Cash Flow and Capital Expenditure

• Operating cash flow up 48% to $349 million: Operating cash flow for 26 weeks was $349.0 million, up 47.8% from $236.0 million in prior year, providing substantial capacity to fund capital investments and shareholder returns. Source

Consumer Environment and Strategy

• Consumer spending pressured, lower-income households hurting: Management noted that while consumer spending remains pressured, particularly among lower-income households, the company executed at a high level by focusing on key events and categories most important to customers. Source
• Company targeting market share gains through value: Management stated that reinvesting tariff-related benefits into value, expanding new brands and categories, and accelerating store, omni-channel and loyalty initiatives are helping the company gain market share and strengthen customer engagement. Source
• Omni-channel and loyalty being accelerated for growth: The company is accelerating initiatives across stores, omni-channel and loyalty programs as part of strategic growth efforts designed to support sustainable long-term growth while navigating current consumer pressures. Source

Store Expansion and Inventory Management

• Three new stores opened, total reaches 327 locations: Academy opened three new stores in Q2 across Pennsylvania and Tennessee, bringing total store count to 327 locations from 324 at start of quarter. Source
• New stores generating positive mid-single-digit comp sales: The company reported that new stores being opened are delivering comparable sales performance in the positive mid-single-digit range, indicating the expansion strategy is resonating with customers. Source
• Inventory per store down 5.6% units, 2.3% dollars: Merchandise inventory on a per-store basis was down 5.6% in units and down 2.3% in dollars as of August 1, 2026, reflecting improved inventory management efficiency. Source
• Eleven stores planned for Q3, rest in Q4: The company plans to open 11 stores during Q3 with remaining locations to be opened in Q4, continuing 2026 expansion strategy to reach approximately 340+ locations by year-end. Source

Coming up, per management

• Eleven stores opening in third quarter: The company plans to open 11 new stores during Q3, with remaining locations to open in Q4 of fiscal 2026. Source
• Quarterly dividend of $0.15 payable October 14: Dividend of $0.15 per share declared September 2, 2026 is payable October 14, 2026 to holders of record as of September 16, 2026. Source

Risks management discussed

• Demand: Consumer spending remains pressured, particularly among lower-income households, which management identified as the primary headwind to comparable sales performance in the current operating environment. Source
• Financial: Inflation and other economic risks could impact consumer spending patterns and the company's ability to maintain margin improvements in the second half of fiscal 2026. Source

Earlier plans management reported on

• On track: Management expressed confidence in achieving fiscal 2026 sales and earnings objectives despite consumer pressures, supporting the affirmed sales guidance and raised EPS guidance. Source

Summarised with AI from the documents the company filed with the SEC. Every point carries a quote that is checked word for word against the filing; a point whose quote is not found is left out. Source opens the filing at that line.