Academy Sports + Outdoors Reports Robust Q1 2026 Results, Raises Guidance
Summary
- Q1 Net Sales: \$1.44 billion, up 6.7% year-over-year
- Comparable Sales: Up 2.9%
- eCommerce Sales: Up 17.4%
- EPS (GAAP, Diluted): \$0.80, up 17.6%
- Adjusted EPS (Diluted): \$0.93, up 22.4%
- Net Income: \$52.7 million, up 14.3%
- Adjusted Net Income: \$61.2 million, up 18.6%
- Cash and Equivalents: \$337.8 million, up 18.5%
- Inventory Per Store: Down 6.8% in units, down 0.8% in dollars
- Dividend: \$0.15/share, payable July 16, 2026
- New Store Openings: 2 new stores in Q1, total footprint now 324 stores
- Guidance Raised: Low end of full-year guidance increased
Detailed Financial Performance
Academy Sports + Outdoors, Inc. delivered strong first quarter results for fiscal 2026, with total net sales reaching \$1.44 billion, a 6.7% increase compared to Q1 2025. The growth was driven by both higher store traffic and increased average ticket value. Comparable sales rose 2.9%, reversing a decline from the prior year. Notably, eCommerce sales surged 17.4%, reflecting continued digital momentum.
Profitability Highlights
- Income before tax: \$68.9 million (up 9.4%)
- Net income: \$52.7 million (up 14.3%)
- Adjusted net income: \$61.2 million (up 18.6%)
- GAAP diluted EPS: \$0.80 (up 17.6%)
- Adjusted diluted EPS: \$0.93 (up 22.4%)
Gross margin was 33.2% (down from 34% in Q1 2025). Selling, general and administrative expenses were 28.1% of sales, slightly lower than last year.
Capital Allocation and Balance Sheet
- Share Repurchases: \$99.3 million in Q1 (comparable to prior year)
- Dividends Paid: \$9.6 million (up 10.3%)
- Cash and Equivalents: \$337.8 million
- Long-Term Debt: \$480.3 million
- Inventory: \$1.65 billion, with per store inventory down in units and dollars
The company continues to return capital to shareholders through both share repurchases and dividends. The Board declared a quarterly dividend of \$0.15/share, payable July 16, 2026, to shareholders of record as of June 18, 2026.
Store Expansion
- Opened 2 new stores in Ohio and Oklahoma in Q1
- Store count now at 324 locations
- Plans to open 3 stores in Q2 and 15-20 more in the second half of fiscal 2026
- Total gross square footage now 22.04 million sq. ft.
Updated Fiscal 2026 Guidance: Positive Outlook
Based on Q1 performance, Academy raised the low end of its full-year guidance:
- Net Sales: \$6.23B–\$6.36B (previously \$6.18B–\$6.35B)
- Sales Growth: 3%–5% (previously 2%–5%)
- Comparable Sales: 0%–2%
- Gross Margin Rate: 34.5%–35.0%
- GAAP Net Income: \$390M–\$415M
- Adjusted Net Income: \$420M–\$445M
- GAAP EPS (Diluted): \$5.95–\$6.35 (up from \$5.65–\$6.15)
- Adjusted EPS (Diluted): \$6.40–\$6.80 (up from \$6.10–\$6.60)
- Capex: \$200M–\$240M
- Adjusted Free Cash Flow: \$250M–\$300M
The guidance assumes a tax rate of 22%–23% and excludes potential future share repurchases.
Management Commentary: CEO Steve Lawrence emphasized that results were driven by increases in both traffic and average ticket, and stated the company is raising the low end of guidance based on Q1 performance. CFO Carl Ford noted the company remains cautious about macroeconomic conditions and believes strategies will allow Academy to serve consumers and deliver shareholder value despite inflationary headwinds.
Strategic Initiatives & Risks
Academy continues its long-range strategies focused on offering compelling assortments at outstanding values. The company is methodically executing on store expansion, eCommerce growth, and capital allocation. However, inflationary pressures and broader macroeconomic uncertainties are expected to impact consumer spending for the remainder of the year. The company’s outlook incorporates these risks, recognizing the uncertain and potentially volatile environment.
The press release contains forward-looking statements subject to various uncertainties, including economic conditions, inflation, interest rates, trade policy changes, geopolitical tensions, and the financial health of customers. Investors should monitor these risks and the company’s SEC filings for updates.
Non-GAAP Measures
Academy reports Adjusted EBIT, Adjusted Net Income, Adjusted EPS, and Adjusted Free Cash Flow as supplemental non-GAAP measures. These are used for business planning and performance measurement. Full reconciliations are provided in the release. Adjusted EBIT for Q1 was \$89.0 million (up from \$79.6 million last year). Adjusted Free Cash Flow for Q1 was \$121.6 million (up from \$106.5 million).
Potential Share Price Impact
Key items that may move the share price:
- Strong sales and earnings growth in Q1, well above last year
- Significant eCommerce growth
- Dividend increase
- Raised guidance for full-year sales and earnings
- Continued share repurchases and store expansion
- Management’s confidence in strategic execution despite macro headwinds
These developments, especially the raised guidance and robust Q1 results, are likely to be viewed positively by investors and could impact share value.
Conference Call Information
Academy will host a conference call at 10:00 a.m. Eastern Time to discuss these results. The call will be webcast at investors.academy.com.
About Academy Sports + Outdoors
Academy is a leading full-line sporting goods and outdoor recreation retailer, founded in 1938 and now operating in 21 states with more than 300 stores. Its product assortment focuses on outdoor, apparel, sports & recreation, and footwear, with both national brands and private labels. More information is available at www.academy.com.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should review the company’s SEC filings and consult a financial advisor before making investment decisions. The information provided is based on publicly available data and management statements as of the date of publication and may be subject to change.
