Academy Sports and Outdoors (ASO) Q2 FY2026 Earnings Call: EPS Guidance Raised
Source Tradingkey
Key Takeaways
- Q2 fiscal 2026 net sales increased 3% year over year to $1.6 billion, while comparable sales declined 0.4%. E-commerce sales rose 12.8%.
- Gross margin expanded approximately 440 basis points to 40.4%, primarily reflecting tariff refunds. Management said this benefit is non-recurring and expects no additional net P&L impact from refunds for the rest of the year.
- Diluted EPS increased 17.3% to $2.17, while adjusted EPS rose 19.1% to $2.31. Tariff refunds, net of pricing, labor and marketing investments, added $0.06 to both measures.
- Consumer trends remained divided by income. Traffic from households earning under $50,000 fell by a high-single-digit percentage, while traffic from households earning more than $100,000 increased by a high-single-digit percentage.
- Academy Sports and Outdoors maintained its fiscal 2026 sales outlook and raised its gross margin and EPS guidance. Management expects full-year sales growth of 3% to 5% and comparable sales ranging from flat to up 2%.
- Q3 started with low-single-digit positive comparable sales through Labor Day. Management said shifted tax-free weekends boosted early Q3 results but that comps would still have been positive without the timing benefit.
Core Financial Data
| Metric | Q2 fiscal 2026 result | Year-over-year change or context |
|---|---|---|
| Net sales | $1.6 billion | Up 3% |
| Comparable sales | Down 0.4% | New stores in the comp base contributed about 50 basis points |
| E-commerce sales | — | Up 12.8% |
| Gross margin | 40.4% | Up approximately 440 basis points |
| SG&A as a percentage of sales | 25.5% | Up 20 basis points |
| Operating income | $246 million | Up 42.9%, including tariff refunds |
| Diluted EPS | $2.17 | Up 17.3% |
| Adjusted EPS | $2.31 | Up 19.1% |
| Total inventory | — | Up 4.4%; per-store inventory dollars down 2.3% and units down 5.6% |
| Cash | $298 million | Plus an untapped $1 billion revolver |
| First-half net sales | $3.1 billion | Up 4.7% |
| First-half comparable sales | Up 1.1% | Within the full-year guidance range |
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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